- VS -

 
 

 
   
(OR 300 Reasons Why It Needs to CHANGE)
   
   
"Exhibit E " - (Ad Age) PRINT and RADIO Blues...
     
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PRINT and RADIO Blues / Exhibit E top

  1. Newspapers Circ Continues Decline; Pubs Tout Online Gains (Industry Loses 1.2 Million Readers in Six Months - Read)
  2. Imagining the Day When the WSJ Print Edition Folds (Newspapers) (Read Story)
  3. Print Media Strikes Back (Newspapers) (Read Story)
  4. Newspapers' Next Best Opportunity Is Local (Newspapers) (Read Story)
  5. US Online Adspend Will Overtake Newspapers by 2008 (Magazines) (Read Story)
  6. Are Magazines Dead? (Magazines) (Read Story)
  7. Iceberg Dead Ahead / Commentary (Magazines) (Read Story)
  8. Assessing the Shrinking Teen-Magazine Market (Magazines) (Read Story)
  9. Magazines - The Safest BET in Advertising (Read Story)
  10. A Most Grim Outlook for Newspapers (Read Story)
  11. Flat First Half for Consumer Magazines (Read Story)
  12. More Headlies... (Read Stories)
   

 

 

PRINT and RADIO Blues / Exhibit E

 

  1. Magazines Mark Down Tough First-Half for Circulation (Magazines) (Read Story)
  2. Circ Battle Looms Over Paid vs. Verified (Magazines) (Read Story)
  3. Local Papers Brace For Federated Ad Drawdown (Newspapers) (Read Story)
  4. B-to-B Trade Remains Staid, Shows Outpace Ad Pages In Business Pubs (Magazines) (Read Story)

RADIO Blues

  1. Radio's Still Mired, Ad Demand Remains Tired (Read Story)
  2. On The Radio Ad Dial: CBS Gets Less, Clear Channel More (Read Story)
 

 

NEWSPAPERS

 

1. Newspapers Circ Continues Decline; Publishers Tout Online Gains

    Industry Loses 1.2 Million Readers in Six Months / By Nat Ives  / Published: May 08, 2006 top

 

NEW YORK (AdAge.com) -- This morning's semi-annual report on paid newspaper circulation delivered nothing to change the portrait of an industry losing customers.

 

The newspaper industry has received the latest round of bad news.

For the six months that ended March 31, the average paid weekday circulation of all 770 U.S. newspapers reporting declined to 45.4 million, down 2.5% from the equivalent prior period, according to an analysis by the Newspaper Association of America of figures compiled by the Audit Bureau of Circulations. That's a loss of nearly 1.2 million paying readers.

 

Last November's report also showed a topline 2.6% decline in paying weekday readers, in that case among 786 papers reporting, meaning 1.2 million paying readers were lost then too, according to the NAA.

 

Drop-offs outnumber gains

Among the big urban papers, drop-offs vastly outnumbered gains. The Baltimore Sun, for example, lost 3% of its paid circulation, falling to a paid weekday average of 236,317 from 243,747 one year prior. top

 

In Philadelphia, The Inquirer dropped nearly 5.5% to 350,457 and the Daily News sank 9.3% to 116,590. Both are being shopped for buyers by the McClatchy Co., which agreed to buy them as part of its acquisition of Knight Ridder, but were immediately returned to the block. Large papers also suffered in Atlanta, Cleveland, Houston, Miami, Minneapolis and Seattle.

 

Of the top 25 newspapers by weekday circulation in today's report, 20 lost paid circulation during the six months that ended March 31, compared with their figures for the equivalent period a year earlier.

 

None of the top 25 that added paying circulation -- USA Today, The New York Times, The Chicago Tribune, The Star-Ledger of Newark and The Detroit Free Press -- moved the needle up by even 1%. But six lost more than 5%, lead by The San Francisco Chronicle, which gave up 15.6%. top

 

De-emphasize the results

The Newspaper Association of America moved quickly to de-emphasize the results. "Both circulation and readership are important, valid measures of the newspaper audience, but counting only the number of units sold on a given day obscures the actual use of newspapers and consumer exposure to advertising," said John F. Sturm, president-CEO, NAA.

 

"Our continuing discussions with the advertising community and third-party research we have seen tell us that audience is important to advertisers because it provides a more accurate measure of newspapers' total reach," he said. "The research also points out how engaged the newspaper audience is with the media -- in print and online."

 

Newspaper publishers -- and journalists, investors and related businesses -- indeed have some reasons for optimism. Last year's shareholder revolt at Knight Ridder notwithstanding, newspaper companies continue to throw off healthy profits; their Web sites, too, are attracting readers online. top

 

The newspaper association said today that the online audience for newspaper reached record levels in the first quarter: Citing Nielsen/NetRatings data, it said newspaper Web sites averaged 56 million users, an 8% increase in reach of first-quarter 2005.

 

The top three

Of the top three papers, Gannett's category-leader USA Today essentially held flat, improving average paid weekday circulation by 0.09% to total 2.27 million. At No. 2, The Wall Street Journal from Dow Jones saw average paid weekday circulation slip a full percentage point to 2.05 million. And The New York Times expanded 0.5% to 1.14 million.

 

But the fourth, Tribune's Los Angeles Times, gave up 5.4% and fell to average paid weekday circulation of 851,832. And The Washington Post, fifth on the list, slipped 3.67% to 724,242.

 

Although New York's tabloids narrowed the distance between, The Daily News held on to its top spot, even if it lost 3.7% of its average weekday paying circulation, falling to 708,477. Rival New York Post also lost ground, just not as much -- average paid circulation fell 0.7% to 673,379. top

 

The New York Times Co. may take pride this morning that its flagship paper's print edition eked out growth, but another of its properties, The Boston Globe, fared much worse, falling 8.5% to 397,288.

 

Today's report did not include New Orleans' Times-Picayune, which deferred reporting because of the effects of Hurricane Katrina. But it marked the return The Tribune Co.'s Newsday in Long Island which has been absent since the report of March 2004 because of censure by the audit bureau.  http://adage.com/mediaworks/article.php?article_id=109092

 

2. Imagining the Day When the WSJ Print Edition Folds

And Other Thoughts About the Endgame for Newspapers in a Fully Digital Age/ By Scott Donaton top

Published: July 23, 2006

"Dow Jones will reassess its news delivery"  -- New York Times headline, July 14, 2006

"Wall Street Journal folds print edition in media-world stunner" -- New York Times headline, date to be determined

Wow, they're going to do it. Or at least they're going to think about doing it. That the first thing that came into my mind on a recent Friday morning when The New York Times reported that the parent company of The Wall Street Journal had created a committee "to reassess the ways it delivers news across all its print and online properties."

Vision of Dow Jones
Granted, I was operating on very little sleep, having red-eyed back from L.A. But as I read the piece, I was hit with the vision of Dow Jones emerging from this process with the bold and aggressive decision to make The Journal the first major newspaper to convert fully to a digital model.
top

It's not as heretical or stunning a concept as you might think. I strongly believe that print has a future; it's hard to imagine a world without glossy lifestyle monthlies because there's no better delivery system (yet) for their photos and stories. But certain forms of media that are currently print-based, particularly daily newspapers, must explore the possibility that there are more reader-friendly and cost-efficient ways to produce and distribute their content.

Traditional media executives
It's still surprisingly difficult to get traditional media executives to admit this. But their resistance seems based on an emotional attachment to ink on paper, a deeply held -- if largely indefensible -- sense that a newspaper's soul is inextricably linked to its format.

Which is nonsense. Scary as they are, some things must be confronted, including our overly romanticized notions of what a newspaper is.

I don't have enough insight into The Journal's economics to say when (or, with confidence, whether) the day will come when a print-to-digital conversion is economically feasible. Could be two years, could be 10. But most newspapers are faced with roughly the same dilemma: Print dollars are flat or down but still account for the bulk of revenue and profits. Digital is growing by double- or triple-digits, but off a relatively small base, and online advertising isn't valued as highly as print. Even those who believe a digital takeover is inevitable don't want to admit it because it puts their existing revenue streams at risk too soon, before they've built the ark that will carry them safely to a new business model.

Long-term perspective
From that point of view, it seems batty to suggest that Dow Jones -- despite its early aggressiveness and success on the web -- should consider folding a 117-year-old print daily that has more than 2 million paid subscribers. But from a long-term, brand-centric perspective, it would be negligent for the committee not to crunch the numbers to determine when and if digital delivery will surpass the efficiencies of printing (at 17 U.S. plants) and distributing a paper product. The web has content as well as cost advantages, being a better tool for tracking stocks and breaking news.

The Journal has a head start. It already has the largest paid-subscription news site on the web with more than 768,000 customers, and CEO Rich Zannino said a few months ago that he would reorganize the business "around markets rather than channels of distribution."

Paul Ingrassia will lead the Dow Jones committee as VP-news strategy and will take a senior editorial role when the project is complete. His promotion was announced along with a retirement date (end of 2007) for The Journal's managing editor, Paul Steiger. The Times said Ingrassia "will play a significant role in determining the journalistic future of The Journal." And the rest of the newspaper industry as well.
top

 

http://adage.com/mediaworks/article?article_id=110685

 

XXXXXXXXXXX

 

3. Print Media Strikes Back 

By Stuart Elliott The New York Times / http://www.iht.com/articles/2006/02/15/business/ADCOL.php

 

WEDNESDAY, FEBRUARY 15, 2006

 

NEW YORK The print media, beset by intensifying competition for advertising dollars, are seeking to strike back.

 

Trade organizations for the U.S. newspaper and magazine industry are planning elaborate and expensive campaigns that tackle a daunting task: persuading marketers and agencies to think better of print as an ad medium.

 

The industry is contending with sluggish growth as it faces off against the Internet, e-mail marketing and other newer rivals. top

 

The magazine campaign is scheduled to start first, on Feb. 27, with a series of ads for the Magazine Publishers of America from Mullen in Wenham, Massachusetts. The campaign, which was to be formally announced Wednesday, is the second part of a three-year, $40 million effort on behalf of the magazine industry.

 

The focal point of the magazine campaign will be ads for eight brands and products like Altoids mints, sold by Kraft Foods; Cover Girl makeup, made by Procter & Gamble; the Infiniti car line, sold by Nissan Motor; and J.C. Penney department stores. top

 

The ads are slyly designed to look as if they had been ripped from the magazines in which they appear. Text next to the torn-out ads makes the point that magazines engage readers with "ideas that live beyond the page."

 

The newspaper campaign, to be announced Monday, is scheduled to begin on March 20. It is being created by the Martin Agency in Richmond, Virginia, for the Newspaper Association of America, which hopes that its members will donate as much as $50 million of ad space to run the campaign this year.

 

The newspaper campaign takes a humorous tack to pitch the virtues of buying ad space. One ad, for instance, declares: "Every day we try to print something that people on the right and the left can actually agree on. We call it 'advertising."'

 

The campaign asserts that the advertising in newspapers, unlike that in some other media, like Web sites, is "a destination, not a distraction."

 

Both trade organizations have recently run campaigns aimed at the advertising industry. But the need for the print media to make their case in a more noticeable, even intrusive, manner is growing as their share of advertising revenue shrinks.

 

"I'm surprised they haven't tried to do something like this sooner," said Lauren Rich Fine, who follows the ad industry for Merrill Lynch. "There's still value in print advertising, but advertisers are assessing the return they're getting from it." top

 

Previously, sluggish growth for newspaper ad revenue was typically attributable to a poor economy or even a recession, said a specialist in the newspaper industry, Miles Groves of MG Strategic Research in Washington.

 

But now, "there's more going on here than a cycle," he said, as many marketers "look for better ways to tell their stories, like more investment in direct marketing, one-to-one marketing, online marketing."

 

John Kimball, chief marketing officer at the newspaper association, based in Vienna, Virginia, acknowledged that newspapers were "somehow, in the minds of many people, a medium that's in this great trouble."

 

"When you dig a little deeper, we have a compelling story," he said, "but we didn't tell it to anybody." So the newspaper association returned to Martin, with which it worked on a campaign in 2003, and met with other agencies and advertisers.

 

From that came a decision to focus the campaign on the idea that consumers may "buy subscription radio to avoid commercials, TiVo commercials on TV and hate pop-up ads on the Internet," Kimball said, "but would not want to read a newspaper that did not contain advertising."

 

The newspaper industry is "spending a lot of time on the defensive," said Earl Cox, partner and chief strategy officer at Martin, part of Interpublic Group. "A lot of people have written off newspapers as old-school and static, but consumers don't just read newspapers, they use them, to research and shop for the things they want to buy."

 

The ads are slyly designed to look as if they had been ripped from the magazines in which they appear. Text next to the torn-out ads makes the point that magazines engage readers with "ideas that live beyond the page." top

 

The newspaper campaign, to be announced Monday, is scheduled to begin on March 20. It is being created by the Martin Agency in Richmond, Virginia, for the Newspaper Association of America, which hopes that its members will donate as much as $50 million of ad space to run the campaign this year.

 

The newspaper campaign takes a humorous tack to pitch the virtues of buying ad space. One ad, for instance, declares: "Every day we try to print something that people on the right and the left can actually agree on. We call it 'advertising."'

 

The campaign asserts that the advertising in newspapers, unlike that in some other media, like Web sites, is "a destination, not a distraction."

 

Both trade organizations have recently run campaigns aimed at the advertising industry. But the need for the print media to make their case in a more noticeable, even intrusive, manner is growing as their share of advertising revenue shrinks.

 

"I'm surprised they haven't tried to do something like this sooner," said Lauren Rich Fine, who follows the ad industry for Merrill Lynch. "There's still value in print advertising, but advertisers are assessing the return they're getting from it."

 

Previously, sluggish growth for newspaper ad revenue was typically attributable to a poor economy or even a recession, said a specialist in the newspaper industry, Miles Groves of MG Strategic Research in Washington.

 

But now, "there's more going on here than a cycle," he said, as many marketers "look for better ways to tell their stories, like more investment in direct marketing, one-to-one marketing, online marketing."

 

John Kimball, chief marketing officer at the newspaper association, based in Vienna, Virginia, acknowledged that newspapers were "somehow, in the minds of many people, a medium that's in this great trouble." top

 

"When you dig a little deeper, we have a compelling story," he said, "but we didn't tell it to anybody." So the newspaper association returned to Martin, with which it worked on a campaign in 2003, and met with other agencies and advertisers.

 

From that came a decision to focus the campaign on the idea that consumers may "buy subscription radio to avoid commercials, TiVo commercials on TV and hate pop-up ads on the Internet," Kimball said, "but would not want to read a newspaper that did not contain advertising."

 

The newspaper industry is "spending a lot of time on the defensive," said Earl Cox, partner and chief strategy officer at Martin, part of Interpublic Group. "A lot of people have written off newspapers as old-school and static, but consumers don't just read newspapers, they use them, to research and shop for the things they want to buy."

 

"When you dig a little deeper, we have a compelling story," he said, "but we didn't tell it to anybody." So the newspaper association returned to Martin, with which it worked on a campaign in 2003, and met with other agencies and advertisers.

 

From that came a decision to focus the campaign on the idea that consumers may "buy subscription radio to avoid commercials, TiVo commercials on TV and hate pop-up ads on the Internet," Kimball said, "but would not want to read a newspaper that did not contain advertising."

 

The newspaper industry is "spending a lot of time on the defensive," said Earl Cox, partner and chief strategy officer at Martin, part of Interpublic Group. "A lot of people have written off newspapers as old-school and static, but consumers don't just read newspapers, they use them, to research and shop for the things they want to buy."

 

 NEW YORK The print media, beset by intensifying competition for advertising dollars, are seeking to strike back. top

 

Trade organizations for the U.S. newspaper and magazine industry are planning elaborate and expensive campaigns that tackle a daunting task: persuading marketers and agencies to think better of print as an ad medium.

 

The industry is contending with sluggish growth as it faces off against the Internet, e-mail marketing and other newer rivals.

 

The magazine campaign is scheduled to start first, on Feb. 27, with a series of ads for the Magazine Publishers of America from Mullen in Wenham, Massachusetts. The campaign, which was to be formally announced Wednesday, is the second part of a three-year, $40 million effort on behalf of the magazine industry.

 

The focal point of the magazine campaign will be ads for eight brands and products like Altoids mints, sold by Kraft Foods; Cover Girl makeup, made by Procter & Gamble; the Infiniti car line, sold by Nissan Motor; and J.C. Penney department stores.

 

The ads are slyly designed to look as if they had been ripped from the magazines in which they appear. Text next to the torn-out ads makes the point that magazines engage readers with "ideas that live beyond the page."

 

The newspaper campaign, to be announced Monday, is scheduled to begin on March 20. It is being created by the Martin Agency in Richmond, Virginia, for the Newspaper Association of America, which hopes that its members will donate as much as $50 million of ad space to run the campaign this year.

 

The newspaper campaign takes a humorous tack to pitch the virtues of buying ad space. One ad, for instance, declares: "Every day we try to print something that people on the right and the left can actually agree on. We call it 'advertising."' top

 

The campaign asserts that the advertising in newspapers, unlike that in some other media, like Web sites, is "a destination, not a distraction."

 

Both trade organizations have recently run campaigns aimed at the advertising industry. But the need for the print media to make their case in a more noticeable, even intrusive, manner is growing as their share of advertising revenue shrinks.

 

"I'm surprised they haven't tried to do something like this sooner," said Lauren Rich Fine, who follows the ad industry for Merrill Lynch. "There's still value in print advertising, but advertisers are assessing the return they're getting from it."

 

Previously, sluggish growth for newspaper ad revenue was typically attributable to a poor economy or even a recession, said a specialist in the newspaper industry, Miles Groves of MG Strategic Research in Washington.

 

But now, "there's more going on here than a cycle," he said, as many marketers "look for better ways to tell their stories, like more investment in direct marketing, one-to-one marketing, online marketing."

 

John Kimball, chief marketing officer at the newspaper association, based in Vienna, Virginia, acknowledged that newspapers were "somehow, in the minds of many people, a medium that's in this great trouble."

 

"When you dig a little deeper, we have a compelling story," he said, "but we didn't tell it to anybody." So the newspaper association returned to Martin, with which it worked on a campaign in 2003, and met with other agencies and advertisers.

 

From that came a decision to focus the campaign on the idea that consumers may "buy subscription radio to avoid commercials, TiVo commercials on TV and hate pop-up ads on the Internet," Kimball said, "but would not want to read a newspaper that did not contain advertising."

 

The newspaper industry is "spending a lot of time on the defensive," said Earl Cox, partner and chief strategy officer at Martin, part of Interpublic Group. "A lot of people have written off newspapers as old-school and static, but consumers don't just read newspapers, they use them, to research and shop for the things they want to buy."

 

 NEW YORK The print media, beset by intensifying competition for advertising dollars, are seeking to strike back. top

 

Trade organizations for the U.S. newspaper and magazine industry are planning elaborate and expensive campaigns that tackle a daunting task: persuading marketers and agencies to think better of print as an ad medium.

 

The industry is contending with sluggish growth as it faces off against the Internet, e-mail marketing and other newer rivals.

 

The magazine campaign is scheduled to start first, on Feb. 27, with a series of ads for the Magazine Publishers of America from Mullen in Wenham, Massachusetts. The campaign, which was to be formally announced Wednesday, is the second part of a three-year, $40 million effort on behalf of the magazine industry.

 

The focal point of the magazine campaign will be ads for eight brands and products like Altoids mints, sold by Kraft Foods; Cover Girl makeup, made by Procter & Gamble; the Infiniti car line, sold by Nissan Motor; and J.C. Penney department stores.

 

The ads are slyly designed to look as if they had been ripped from the magazines in which they appear. Text next to the torn-out ads makes the point that magazines engage readers with "ideas that live beyond the page."

 

The newspaper campaign, to be announced Monday, is scheduled to begin on March 20. It is being created by the Martin Agency in Richmond, Virginia, for the Newspaper Association of America, which hopes that its members will donate as much as $50 million of ad space to run the campaign this year.

 

The newspaper campaign takes a humorous tack to pitch the virtues of buying ad space. One ad, for instance, declares: "Every day we try to print something that people on the right and the left can actually agree on. We call it 'advertising."'

 

The campaign asserts that the advertising in newspapers, unlike that in some other media, like Web sites, is "a destination, not a distraction."

 

Both trade organizations have recently run campaigns aimed at the advertising industry. But the need for the print media to make their case in a more noticeable, even intrusive, manner is growing as their share of advertising revenue shrinks.

 

"I'm surprised they haven't tried to do something like this sooner," said Lauren Rich Fine, who follows the ad industry for Merrill Lynch. "There's still value in print advertising, but advertisers are assessing the return they're getting from it." top

 

Previously, sluggish growth for newspaper ad revenue was typically attributable to a poor economy or even a recession, said a specialist in the newspaper industry, Miles Groves of MG Strategic Research in Washington.

 

But now, "there's more going on here than a cycle," he said, as many marketers "look for better ways to tell their stories, like more investment in direct marketing, one-to-one marketing, online marketing."

 

John Kimball, chief marketing officer at the newspaper association, based in Vienna, Virginia, acknowledged that newspapers were "somehow, in the minds of many people, a medium that's in this great trouble."

 

"When you dig a little deeper, we have a compelling story," he said, "but we didn't tell it to anybody." So the newspaper association returned to Martin, with which it worked on a campaign in 2003, and met with other agencies and advertisers.

 

From that came a decision to focus the campaign on the idea that consumers may "buy subscription radio to avoid commercials, TiVo commercials on TV and hate pop-up ads on the Internet," Kimball said, "but would not want to read a newspaper that did not contain advertising." top

 

The newspaper industry is "spending a lot of time on the defensive," said Earl Cox, partner and chief strategy officer at Martin, part of Interpublic Group. "A lot of people have written off newspapers as old-school and static, but consumers don't just read newspapers, they use them, to research and shop for the things they want to buy."

 

NEW YORK The print media, beset by intensifying competition for advertising dollars, are seeking to strike back.

 Trade organizations for the U.S. newspaper and magazine industry are planning elaborate and expensive campaigns that tackle a daunting task: persuading marketers and agencies to think better of print as an ad medium.

 

The industry is contending with sluggish growth as it faces off against the Internet, e-mail marketing and other newer rivals.

 

The magazine campaign is scheduled to start first, on Feb. 27, with a series of ads for the Magazine Publishers of America from Mullen in Wenham, Massachusetts. The campaign, which was to be formally announced Wednesday, is the second part of a three-year, $40 million effort on behalf of the magazine industry.

 

The focal point of the magazine campaign will be ads for eight brands and products like Altoids mints, sold by Kraft Foods; Cover Girl makeup, made by Procter & Gamble; the Infiniti car line, sold by Nissan Motor; and J.C. Penney department stores. top

 

The ads are slyly designed to look as if they had been ripped from the magazines in which they appear. Text next to the torn-out ads makes the point that magazines engage readers with "ideas that live beyond the page."

 

The newspaper campaign, to be announced Monday, is scheduled to begin on March 20. It is being created by the Martin Agency in Richmond, Virginia, for the Newspaper Association of America, which hopes that its members will donate as much as $50 million of ad space to run the campaign this year.

 

The newspaper campaign takes a humorous tack to pitch the virtues of buying ad space. One ad, for instance, declares: "Every day we try to print something that people on the right and the left can actually agree on. We call it 'advertising."'

 

The campaign asserts that the advertising in newspapers, unlike that in some other media, like Web sites, is "a destination, not a distraction."

 

Both trade organizations have recently run campaigns aimed at the advertising industry. But the need for the print media to make their case in a more noticeable, even intrusive, manner is growing as their share of advertising revenue shrinks.

 

"I'm surprised they haven't tried to do something like this sooner," said Lauren Rich Fine, who follows the ad industry for Merrill Lynch. "There's still value in print advertising, but advertisers are assessing the return they're getting from it."

 

Previously, sluggish growth for newspaper ad revenue was typically attributable to a poor economy or even a recession, said a specialist in the newspaper industry, Miles Groves of MG Strategic Research in Washington. top

 

But now, "there's more going on here than a cycle," he said, as many marketers "look for better ways to tell their stories, like more investment in direct marketing, one-to-one marketing, online marketing."

 

John Kimball, chief marketing officer at the newspaper association, based in Vienna, Virginia, acknowledged that newspapers were "somehow, in the minds of many people, a medium that's in this great trouble."

 

"When you dig a little deeper, we have a compelling story," he said, "but we didn't tell it to anybody." So the newspaper association returned to Martin, with which it worked on a campaign in 2003, and met with other agencies and advertisers.top

 

From that came a decision to focus the campaign on the idea that consumers may "buy subscription radio to avoid commercials, TiVo commercials on TV and hate pop-up ads on the Internet," Kimball said, "but would not want to read a newspaper that did not contain advertising."

 

The newspaper industry is "spending a lot of time on the defensive," said Earl Cox, partner and chief strategy officer at Martin, part of Interpublic Group. "A lot of people have written off newspapers as old-school and static, but consumers don't just read newspapers, they use them, to research and shop for the things they want to buy."

 

XXXX

 

4. Newspapers' Next Best Opportunity Is Local

Mommy Blogs, Commuter Dailies and Free Entertainment Guides

 

NEW YORK (AdAge.com) -- After a year of development, the American Press Institute has released a 93-page report intended to help reshape and reinvigorate the newspaper industry. Then again, if changes keep coming as quickly as they have been, newspapers may be history before anyone finishes reading the report. Just today, Merrill Lynch analysts lowered their projections for newspaper ad revenue this year and next, cutting the 2006 forecast to "flat" from a 1.2% gain and slashing the 2007 estimate to a 1.5% decline from a 1.1% rise. top

 

Xxxxxx

 

5. US Online Adspend Will Overtake Newspapers by 2008 (World Advertising) top

 

Carat International's latest Global Market Update predicts that online adspend in the USA will overtake the newspaper sector by next year.

Comments Robert Lerwill, ceo of Carat parent Aegis Group: "Digital is driving growth in almost every single market, transforming the marketing landscape in the process. Investment in digital media has now definitively moved from 'experimental' to 'essential'."

The rise and rise of the once derided advertising medium continues apace. In the UK, it overtook outdoor advertising in 2005 and will outpace magazines this year. In ultra-tech-savvy nations such as Sweden and South Korea, online is set to become the third largest ad medium after TV and newspapers this year.

Among traditional media, Carat reports that TV still rules the roost, especially in the USA where TV spend is heading for 4.3% growth this year, boosted by cable markets, Hispanic channels and the dollar rush injected by this fall's Congressional elections.

Slower adspend growth in Japan has tempered Carat's previous upbeat forecast for Asia-Pacific, although the agency predicts that Nippon's overall economy remains on course for a good 2006. The rest of the region continues to perform well and is expected to receive a further boost at the year-end by the 2006 Asian Games.

A faltering UK market failed to obtain any discernible benefit from the soccer World Cup - likely due to the nation's early exit from the tournament - and European forecasts were revised down accordingly. Italy's economy also remains fragile.
top

However, Lerwill remains bullish: "2006 is shaping up to be a pretty solid year in the majority of markets around the world and global advertising expenditure is expected to grow by 5.7% worldwide."


Data sourced from mandmeurope.com; additional content by WARC staff

 

Xxxxxxxxx

 

MAGAZINES

6. Are Magazines Dead? (Friday, April 21, 2006)

 

No kidding. That’s the precise question popped by moderator Scott Donaton at the opening panel of yesterday’s highly stimulating Magazine Day in New York at the Marriott Marquis., attended by more than 800 magazine professionals, Presented by The Advertising Club of NY and MPA, the announced theme was Magazines on Demand. But let me tell you, folks — as the curtain went up, and the plenary panel began, it was all about engagement/ accountability/ measurement/ multiple platforms/output-based evaluation. That was the critical dialogue and exploration — just as it should be these days. top

 

But back to “ARE MAGAZINES DEAD?”—a provocative way for moderator Donaton, associate publisher of Ad Age, to launch the session. Panelist Andrew Swinand, a top executive at StarCom Mediavest Group, jumped right on it. “Yes,” Swinand said, “magazines are dead, but magazine brands are more vibrant than ever.” Magazines are brands, increasingly using multiple platforms for their content

Both Swinand and Jack Kliger, Chairman, CEO of Hachette Filipacchi U.S, gave spirited, upbeat views on the dynamism of consumer magazines, but emphasized the need to reinvent, redefine, and adapt to the demand for multi-platform delivery of content and audience. Solid, crisp discussion and fine audience questions set the tone for the breakout sessions that followed.

 

I had a little trouble connecting with what the program described as “the role of the demanding consumer.” As far back as I can remember in my days as a publisher of special interest consumer magazines, the consumer was very demanding. Or, as I believe Jack Kliger put it, there was always consumer control. Readers always had the right to choose what they read. top

 

Nor do I think we are at our best as journalists when we are too literal about what the consumer may say he wants or how he wants it. Where I come from editors lead! They often make readers reach for Excellence. Of course we write differently, or reshape content, for the needs of different platforms. Let’s take those writers and editors who practice Essence Journalism on the web. Was it the consumer who demanded that, or the insights of editors with respect to the medium?

 

On the question of “How Magazines Connect with the increasingly demanding consumer” I tend to put my money on editorial imagination and journalistic discipline from cover to cover.

 

Anyone feel differently? Let’s talk about it.

Just one more thing. In all fairness I didn’t get to attend a session on How Editors Keep Their Readers Hooked, moderated by Cindy Stivers, EVP at Martha Stewart Living Omnimedia.

But I’ll check with her on the subject soon.

 

Hershel Sarbin / Senior Editor / http://magazineenterprise360.com/blog/2006/04/21/are-magazines-dead-2/

 

3 comments for Are magazines dead?

http://magazineenterprise360.com/blog/2006/04/21/are-magazines-dead-2/

 

Print magazines won’t be dead until both of the following conditions are satisfied: 1. The Baby Boomers are gone. 2. The technology improves to the point where downloadable media can be read on a lightweight, compact piece of hardware, with high-legibility and vivid graphics. When will that be? Well, we Boomers will start dying off in droves in the 2030s.

 

Comment by Mike Oelrich — April 24, 2006 @ 5:36 pm top

 

nope. but they do have to become more relevant and must have editors with an attitude plus mission even if such an editor creates circulation losses which may be the real readership level. I don’t think you can force relevance on mass demos.

 

Comment by roy payton — April 25, 2006 @ 7:26 pm

 

I have been reading about the death of magazines and print in general for a number of years. The truth is that there are currently way too many print products on the market and a shake out is in progress. The weak will fall and the stronger more market driven will survive and thrive.

 

While the web does present opportunity it is not the promised land and will not replace print. 50 years ago television had print dead and buried. Well may be not!

 

There is an interesting concept called “Gutenberg’s Revenge”. Basically, it means that whenever any new media wants to get the word out about some new product or service, the first place they turn is print. Those of us with ink stained hands know that the best way to release any information is to get it print first.

 

Web and viral marketing will help in the long run but as every Ecompany knows full well nothing yet beats the power of print to inform. top

 

Comment by Mark Schultz — April 28, 2006 @ 3:58 pm

 

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7. Iceberg Dead Ahead  / Commentary (by George Simpson, Monday, Apr 24, 2006)

 

THE MAGAZINE INDUSTRY APPEARS TO be rearranging deck chairs on the Titanic. Nina Link, who heads the Magazine Publishers of America, responded to Merrill Lynch's report that the Internet will take in more advertising dollars in 2006 than magazines will by saying, "The people who report on media like to think it's really significant. I don't." Let me see if I can sort this out. Benjamin Franklin's General Magazine, usually considered to be the first magazine published in the United States, appeared in 1741. It is difficult to nail down the start of the Internet (since the military had it under development in some form since 1957) but let's randomly agree on the start of the Web, as we have come to know it today, as 1994--when Pizza Hut offered pizza ordering on its Web page. That's a 253-year head start for magazines. Yet, in a 12-year blink of a timeline eye, the Internet will pull in more ad dollars than the glossies.

Bravado and spin-control aside, were I the head of the MPA, I'd be shitting a brick right about now.

 

This is not to say that magazines haven't already put some serious effort into their online plays. The ill-fated Pathfinder tried to give Time, Inc. pubs an online presence early on in the game as, more successfully, did Conde Nast's CondeNet, which used content from its titles to try and build communities around themes like travel and cooking.

 

Most publishers choked on the notion of giving away online what they were selling on the newsstand, and drove traffic away in massive numbers. Others used online as an "added value" to print buying, essentially giving away their inventory as a "negotiating" tactic to close offline deals. The net effect was to gravely devalue the online ad space. The magazine industry's blundering along to try and find a way to attract visitors to content no one wanted to pay for (and which couldn't yet be monetized, because advertisers were still largely sitting on the sidelines) only confused and pissed off the public--ESPECIALLY print subscribers, who felt betrayed by publishers they'd been paying renewals to for years and years. top

 

Now print magazines find themselves in the same unfortunate transitional stage as newspapers. Readers are aging, and younger people won't read anything that can't be downloaded to an iPod or cut and pasted into a term paper. The offline content can't be searched, customized or pulled off a server story by story. Advertisers aren't sure who sees their ads--and if readers do, how they react--putting the dead-tree industry behind a massive accountability eight ball. No matter how many bodies are tossed into the moat below the castle walls of Time Warner, Hearst, Meredith or Hachette, print magazines are expensive to compile, produce, print and distribute. And when the advertising goes (with GM at the head of the retreat) you will see a blood-letting of titles unprecedented in American history. You don't need to be Jack Kliger to understand the savings of producing an online publication versus one that gets crammed into a mailbox every month.

 

All economic evidence to the contrary, there will still be those trying to make the "bathroom" or "engagement" arguments long after the ship has sailed. It is time for the magazine industry to realize the inevitability of online-delivered, customized publications--and to use the brand loyalty they still enjoy to transition their readers to electronic platforms.

 

Even the Titanic turned out to be sinkable. top

 

 

8. Assessing the Shrinking Teen-Magazine Market
The folding of the print editions of Time Inc.'s "Teen People" and Hachette Filipacchi's "Elle Girl" magazines (both will continue some form of their titles as websites) is widely viewed as a sign of how the media habits of young people are changing. Meanwhile, the spending decisions of teen-magazine advertisers are also shifting. Marketers of video games, for instance, cut their magazine ad spending to $28.8 million last year from $46.1 million in 2002 -- a 37.5% drop. At the same time, they increased spending on web ads from $4.6 million in 2002 to $12.6 million last year -- an increase of 174%. Other observers point to the fact that millions of teenagers are flocking to online social-networking sites as further proof of how quickly and dramatically marketplace realities are being transformed. But does that necessarily mean more teen-oriented print publications are doomed?
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PRINT BLUES

 

1. Magazines Mark Down Tough First-Half for Circulation

(Audit Bureau Rule Change Affects Most Top Titles)

 

NEW YORK (AdAge.com) -- The impact of a major change in the way the Audit Bureau of Circulations tallies a magazine's circulation was revealed today, as the bureau released its data for the first half of 2006 this morning. Those figures reveal for the first time the effect of removing public-place circulation -- titles found in doctors' offices and beauty parlors -- from the paid column and placing them under the new label "verified." The advent of verified matters because publishers have traditionally pegged their ad rates to paid circulations -- which until now included many public-place copies. top

FULL ARTICLE

 

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2. Circ Battle Looms Over Paid vs. Verified

(Audit Bureau Won't Count Copies in Public Places; Buyers Say They Won't Pay)

 

NEW YORK (AdAge.com) -- The next big fight between advertisers and magazine publishers starts today. When the big consumer titles' first-half circulation figures are released by the Audit Bureau of Circulations, plenty will show average paid totals below last year's levels because, for the first time, they can't count waiting-room and other public-place copies as "paid" -- under any circumstances. top

 

3. Local Papers Brace For Federated Ad Drawdown / By William Spain, August 8, 2006

 

Local newspapers are bracing for Sept. 9. That's when a pullback of as much as $425 million in spending by the medium's largest advertiser--Federated Department Stores--begins, reports Ad Age. It will also mark the end of a "symbiotic relationship between homegrown department-store brands and the newspapers they've advertised in for more than a century," the trade magazine notes. The company's stable of department-store brands will officially be reborn as Macy's, backed by a national branding campaign and a $1.2 billion media plan expected to favor national TV and magazines rather than spot TV and newspapers. While the $425 million figure is dire, even conservative estimates, such as one from a Deutsche Bank analyst, can run to $200 million. The company's annual newspaper spending currently totals $830 million. Federated declined to discuss specifics, but said national magazine buys will be part of the mix for the first time. "Newspapers will continue to be a very important medium," says a spokesman. "The fall launch is one point in time, and what happens longer term is something we are still working on. Our media selection will be driven by where our customers' eyeballs are going." - Read the whole story... top

 

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4 B-to-B Trade Remains Staid, Shows Outpace Ad Pages In Business Pubs

by Erik Sass, Tuesday, Jul 25, 2006 top

 

AD DEMAND FOR B-TO-B PRINT media continues to wane, according to the most recent estimates from the industry's trade group, but publishers are attracting slightly higher revenues from other sources, especially trade shows and conferences. American Business Media (ABM) late Monday reported that May ad page volume in the business press declined 1.04 percent from May 2005. That's the latest down cycle in what has proven to be an erratic first five months of the year for the business press. Through May B-to-B ad pages are up 0.5 percent. While the ABM compiles estimates for trade show activity more slowly, data through the first three months of the year indicates revenues from such events are outpacing traditional ad pages for B-to-B publishers. Trade show revenues among the publishers reporting to the ABM rose to $2.74 billion, a 1.4 percent increase over the $2.59 billion they took in from trade shows during the first quarter of 2005. The ABM estimated that combined print advertising and trade show revenues totaled $5.3 billion for the quarter, a 1 percent gain over the first quarter of 2005.

In recent months, the ABM has worked hard to boost the image of B-to-B publications as ad platforms with a new trade advertising campaign and research showing their high degree of credibility in the eyes of readers, a trust that the trade group said extends to advertisers. top

For example, according to one study conducted for ABM by Harris Interactive, more than half of executives who read B-to-B magazines have acted on an ad they saw in one of these publications. Specifically, "fifty-seven percent [of respondents] said it had caused them to make a purchase or recommend a purchase" for their company, recalled Regina Corso, research director for Harris Interactive. top

This year's revenue figures seem to confirm another finding of the Harris study, which placed B-to-B publications second only to live calls by sales executives - including company reps at trade shows and expos - in terms of sales success. According to Harris, 70 percent of the study respondents said interactions with company reps at industry functions caused them to make or recommend a purchase to their company.

Further support for the viability of B2B events was provided by a recent study by Outsell, Inc., showing trade shows and expos to be one of the few categories embraced by almost every major section of American business. According to Outsell, biotech and pharmaceuticals lead event spending, followed closely by "old economy" manufacturers -- but also "new economy" high-tech firms. This finding stands in sharp contrast to online advertising, for example, which has made few inroads among manufacturers, and print magazines, which are considered least effective of all marketing approaches by high-tech execs.top

 

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RADIO BLUES

 

1. Radio's Still Mired, Ad Demand Remains Tired / by Joe Mandese, Monday, Jul 31, 2006

 

RISING DEMAND FROM NATIONAL ADVERTISERS helped offset a languishing local radio advertising marketplace in June, but combined national and local spot revenues for radio stations remained flat vs. a year ago. In other words, the radio advertising marketplace continues to be moribund, according to the latest stats released late Friday by the Radio Advertising Bureau. The data, derived from a compilation of self-reported sales estimates from stations in 150 markets, indicates demand from national radio advertisers jumped 1 percent in June, but a corresponding decrease in demand from local advertisers kept the lid on total advertising sales. A boost in "non-spot" sales - revenues derived from non-traditional national and local spot radio advertising sales, helped boost total revenues for stations, but overall June did little to improve radio's advertising reception. top

"From a year-to-date perspective, grand total spot and non-spot dollars were flat January through June 2006 compared to those same months from 2005," the RAB reported. "Local ad dollars were down one percent January through June of this year over January through June of last year. National ad revenue was flat January through June 2006 over January through June of 2005."

 

Joe Mandese is Editor of MediaPost.

 

http://publications.mediapost.com/index.cfm?fuseaction=Articles.san&s=46195&Nid=22076&p=283589

 

2. On The Radio Ad Dial: CBS Gets Less, Clear Channel More

by Erik Sass, Wednesday, Aug 9, 2006

 

OVER THE LAST WEEK, A slew of national radio networks released second-quarter earnings results that painted a mixed picture of the industry--with some companies like Clear Channel posting slight gains while others, like CBS, took big dives. Overall, senior media execs said, the business is stuck right where it has always been--the doldrums. top

 

On a year-over-year basis, Clear Channel's overall corporate profits in the second quarter actually fell about 12 percent--from $220.7 million to $197.5 million--but at the same time the company achieved 7 percent growth in revenue, topping $1.85 billion. Within this, Clear Channel Radio earned revenues of $983.5 million--a 6 percent rise that compares favorably with the industry overall, which fell 1 percent. The shrinking profit margin was due in part to increased expenses at Clear Channel Radio, the company said, reassuring investors that these were purely transitional costs associated with switching stations over to HD digital terrestrial format and revamping Clear Channel's online presence.

 

According to company reps, third-quarter revenue is up 4.8 percent so far, and as expenses decline, profits should begin rising. The company portrayed the rising revenue as a victory for its "Less Is More" campaign--which began last year, aiming to reduce ad "clutter" and thus lift the overall desirability of the medium as an ad environment. But Maribeth Papuga, senior vice president and director of local broadcast for MediaVest USA, said this may be somewhat overblown. "Clear Channel is coming off of some lower comps last year, when they introduced 'Less Is More,' and it took them a while to get the inventory levels back up," Papuga said. "They made such a big change, by cutting back some of the 60s and converting them to 30s, and a lot of their competitors benefited from that in the short term. They're probably just recapturing the market share they lost." Papuga added: "Most of their stations are still fairly strong stations"--and with the anti-clutter adjustment behind it, the company is well-positioned going forward. top

 

Meanwhile, other radio station operators are having a somewhat tougher time of it. Cumulus Media posted a substantial rise in income, going from a $5 million loss in second quarter 2005 to a $4.7 million gain in 2006--but also reported that overall revenue was essentially flat, dipping slightly from $87.4 million to $87.3 million. And CBS Radio brought up the rear with an 8 percent drop in revenue from 2005, ending at $519.1 million. The CBS announcement came on the heels of about 100 layoffs at the company. Although it did not report quarterly earnings, Emmis Communications is also experiencing difficulty in the wake of a failed bid by CEO Jeff Smulyan to buy over $500 million of stock back from the company's shareholders. Smulyan withdrew his bid late Friday afternoon, sending Emmis stock tumbling about 20 percent to end at $11.55 that afternoon.

 

Looking at the overall radio market, Papuga said: "it's definitely not showing any signs of resurgence." For one thing, according to Papuga, "radio is still a challenge in terms of investment in the media, because there are so many alternatives" like the Internet and a booming outdoor market. "And there are so many issues on the measurement methods," she added, citing the perpetual complaint of advertisers about radio listening diaries, the current dominant method. "Even if Arbitron's PPM were chosen today, it would still take time to roll that into multiple markets.

 

The sooner the industry can decide on some kind of electronic measurement, the sooner it will get out of this." Papuga's grim estimate was echoed by Anne Elkins, executive vice president and director of local broadcast for MediaCom, who summed up the market in one word: "Soft!" Elkins too called for new measurement methods, but warned that even this will be no cure-all: "I think once new measurement is available, it might inspire some new experimentation--but what really needs to happen, is that the radio suppliers have to stand up and make bold new noise about the medium itself. They need to explain how it proliferates through people's lives." Here Elkins said she was referring to recent Arbitron studies demonstrating radio's usefulness as both a reach and frequency medium--facts that have gotten little media "airplay." top

 

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9. Magazines: The Safest BET in Advertising

VIDEO: ROI Expert Rex Briggs Details Why Print Is Crucial to Media Mix

By Ann Marie Kerwin / Published: October 23, 2006

 

PHOENIX (AdAge.com) -- No topic is more top of mind for marketers than just what they are getting for their ad dollars. Does the money they spend with TV, internet and magazines actually result in brand awareness and sales? Rex Briggs, CEO of Marketing Evolution and co-author of "What Sticks," addressed this morning's American Magazine Conference with some heartening news for the magazine industry: Magazines are the most consistent of all media in delivering both brand awareness and purchase intent. top

 

The other big convergence between TV and online advertising models is search. Carat's Verklin recently predicted that a "search tele-vision" platform would soon emerge. Both Google and Yahoo! have launched video search services allowing users to find any video content posted on the Web, in a way that conventional TV navigation systems could never have foreseen: TV viewers search for any program, on-demand, and with relevant advertising messages embedded. That sounds like Josh Lovison's TV programming dream come true.

 

The only problem with this dream is how to make it work economically. Can the $60 billion invested in the current TV ad impressions business be effectively converted into branded content, search, and granularly-targeted addressable advertising messages? Some people think so, and they think it might even be better than the old advertising model it would be replacing.  top

 

"What if we're wrong? What if people aren't skipping commercials when they get control? What if there are other options?" asks Gregory Wilson, founder of Red Ball Tiger. It helped develop TiVo Showcases, which are based on the concept that if an advertising message is relevant to a consumer they'll actually sit through several minutes of it. 

 

Wilson believes much of the current dialogue on Madison Avenue is misdirected and focused on figuring out ways of "circumventing" consumer control to keep people from skipping commercials.

 

"In the long-run, that has to be a losing battle," Wilson says. "Once people get control, they're not going to look at something they don't want to see. The only solution is to create good spots and relevant spots that people will want to watch. The trick is to make commercials so that they're not interruptive. And that goes against everything Madison Avenue knows. My belief has always been that the only way for advertisers and agencies to retain control is to give the consumers complete control."  top

 

Why is that a better economic model for advertising? Because, Wilson says, it means that the ads people do see will have much greater "accountability." And if they are choosing to watch those ads, then Wilson says they are "involved" with them. Wilson's term for describing this new economic model is "roi," for return on involvement. In the long-run, he says, it will be a better model for advertisers, agencies, the media, and even consumers. Advertisers will pay for ad messages they know consumers are interested in and involved with. Agencies will be compensated for creating ads and media strategies that deliver them. The media will benefit from having happier advertisers and consumers. The consumers will be happier with their media content, because it won't be interrupted by annoying, irrelevant advertising.

 

http://adage.com/article?article_id=112665

 

10. A Most Grim profit Outlook for Papers (Report: Lush margins will be chopped drastically) top

By Samantha Melamed  / Sep 1, 2006

http://www.medialifemagazine.com/artman/publish/article_6912.asp

 

11. Flat First Half for Consumer Magazines (Ad pages slip again in June, off by 1.3 percent)

By Samantha Melamed / Jul 12, 2006

 

Ad pages slip again in June, off by 1.3 percent versus June 2005, leaving the year up just 0.1 percent. Detroit cuts spread their hurt. top

http://www.medialifemagazine.com/artman/publish/article_5903.asp

 

12. NEWSPAPERS BLUES – Gen Headlines

http://www.medialifemagazine.com/artman/publish/cat_index_24.asp

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More News to Come....

Compiled By Daniel Sage / President of MobileAdMarketing.com (300,000 Mobile Ad Spaces Available in 300 Markets in 48 States)

 

   
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  • Outdoor Media Reaches 96% Percent of US Consumers.
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  • The Average CPM Rate for Truckside Ads is around $1.50!
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