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Magazines Fragile, Publishers Should Extend Brands across Platforms
Magazine publishers face a disheartening array of challenges in the coming year - that has been the consensus so far of executives at the American Magazine Conference taking place this week in San Francisco.
The current financial crisis is certain to have an impact on ad budgets, magazines are facing postal and paper cost increases, and newsstand sales are uncertain as stores limit checkout and mainline display space and consumers reduce spending, writes Mediaweek.
John Loughlin, evp and general manager of Hearst Magazines, said magazines may be looking at a future where there are only 200 titles available, rather than today’s 1,000, on retail shelves. He called the industry “incredibly fragile.”
Loughlin suggested that publishers use direct marketing tactics like coupons, as well as in-store promos to boost falling single copy sales.
Other execs, including Andy Sareyan, evp of Meredith Corp., said that magazine revenue is moving away from the print product toward online and other, non-magazine sources. Direct marketing and broadband TV brought in 25 percent of Meredith’s $1.3 billion in revenue in 2007, and Sareyan is hoping to make that 50 percent in coming years. Sareyan says the “only opportunity” for magazines is to develop brands across platforms.
In the face of such challenges, the Magazine Publishers of America has launched a campaign geared toward reminding advertisers that magazines play an important role in the purchasing decisions of consumers.
The campaign is running in advertising trade press online and in print, as well as in the MPA member magazine. An associated website claims magazines are the number-one medium when it comes to driving search among 18- to 44-year-olds, influencing automotive purchase and packaged goods intent.


