Will we still have printed magazines in the next decades or can we assume that eventually all content will only be accessible in a digital format? What will be the magazine of tomorrow look like? How will publishers have to adapt to new and fast-changing technology? In the EMMA Magazine 2014-2015 edition media experts have provided their responses to these questions. Below, Veronika Jermanova summarizes the three articles from the magazine that deal with the challenges print is facing with the rise of digital.
Print - the world’s most effective medium
by Martyn Eustace, Managing Director of Print Power
Since print emerged four centuries ago, it has been a highly effective communication tool. In the past decade, innovations in communications have presented new challenges to print, but it still maintains its important status on the market and studies have shown that the highest revenues are reached when print is incorporated into multimedia campaigns.
Statistically, Eustace shows that print acquires a higher ROI (return on investment) in campaigns than television, and magazines specifically deliver the highest ROI of all media. Unilever, for instance, found that their return on investment was 42 per cent higher for print campaigns when compared to television. This could be attributed to the long-term effect print has: compared to TV adverts, which usually are ‘short and sharp’ with an immediate effect on the viewer, print demands more engagement and attention from a reader. With these requirements a reader also has to spend more time on a printed advert, so the level of concentration is higher than with television or online campaigns. This results in a longer-lasting impact on a reader.
In fact, Eustace points out that many online brands, such as Net-A-Porter, are starting to invest in print magazines as a part of their marketing strategies. Porter, the magazine of Net-A-Porter, also integrates interactive technology to incorporate e-commerce options, view videos, and visit product websites from the pages of the magazine. This incorporation of print into their digital strategy multiplies the effectiveness of each campaign significantly. Additionally, print advertising tends to have a high impact, since the shelf-life of a magazine is longer and the target audience tighter.
However, in spite of the advantages print has with delivering ideas and inspiration directly to a customer, Eustace says that there’s still a dangerous misconception that print advertising is an expensive option that is losing market share when compared to other media. This idea, he says, is not supported by the facts that show clearly that print is effective in engaging audiences. In fact, an online survey by Nieslen for the Newspaper Association of America showed that printed newspapers are still a more effective advertising source when compared to radio, TV and the internet.
With the advent of new technologies, such as augmented reality and wearable tech, it’s becoming increasingly important for marketers to bridge the divide between print and digital by creating seamless transitions from the printed product to smartphones or tablets. After all, it’s clear that people love print, and it will likely continue to be one of the key tools available to the brand marketer and publisher to get their messages to their audiences.
The essence of print - the best of digital
by Jens Henneberg Executive Vice President and Editorial Director at Bonnier Publications
Magazines today are probably the best media, says Henneberg, but they are recently in transition. While magazines are able to communicate efficiently and in a sophisticated, nuanced way, the digital transformation they currently face has challenged the sector by putting pressure on traditional revenue streams and forcing publishers to think outside the box in order to make up for the decline in print turnover.
For Henneberg, magazines represent the best way to deliver information on paper: they incorporate pictures and graphics in a way that’s more visually engaging than other mediums, while they also use the best printing techniques. This combination of visual and text elements allows magazines to provide the best overview and in-depth knowledge of a topic. Additionally, because magazines tend to specialize in specific fields or niche markets, magazine brands tend to enjoy high levels of trust from their readers.
This support is crucial for the shift to digital, says Henneberg, as it will enable readers to continue to engage with magazine brands on multiple platforms. For instance, Henneberg lists five innovation trends that are critical for magazines in order to continue to engage with their customers — and to make their content easily accessible. These trends include 1) the dominance of mobile; 2) the incorporation of video; 3) programmatic advertising; 4) the use of Big Data in decision-making processes; and 5) native advertising.
However, Henneberg says that in spite of digital growth, printed magazines and print advertisements are inevitable in the digital world. In order for publishers to begin incorporating these digital trends, two factors are essential: VAT and privacy laws.
While most EU countries have no or very low VAT on printed media, this is not the case for digital products. This difference, says Henneberg, makes it difficult for publishers to develop the ideal mix of print and digital offers. Additionally, the rules on VAT palce extra financial burdens on an industry already under pressure, and are also complicated and hard to interpret.
The collection and use of data of publishers has come under scrutiny in recent discussions on privacy laws, but Henneberg maintains that it is necessary in order to develop high-quality content. In fact, the intelligent use of consumer data is increasingly a key for success, since it enhances the customer’s experience and makes sure he/she receives the most relevant information in the best format possible. Therefore, in the discussions of the review of the data protection regulation Henneberg says a balanced approached between the protection of consumers’ privacy with the need to secure business opportunities is necessary.
Additionally, Henneberg says that when creating the new framework conditions on these issues it is necessary for policymakers to remember that there is no “silver bullet” solution that will fix the challenges faced by the magazine industry. Rather, publishers need to have the flexibility to innovate and combine different initiatives in order to develop their businesses further. In order to do that, the appropriate framework conditions are needed.
The digital dilemma: will magazines survive?
by Lars Joachim Rose, Chairman of the KLAMBT Media Group
Many people say that printed magazines are the dinosaurs of the digital revolution and that they will eventually become extinct. While the advent of the internet has presented a big challenge to print magazine publishers, Rose argues that this prediction will not come true.
However, he acknowledges that the current snapshot of the magazine industry is grim: revenue streams are drying up, circulation figures declining, advertising revenues decreasing, and publishers are hesitating when it comes to developing an online strategy that generates profits. To combat this, Rose says that publishers have to step back from putting their content online for free and instead treat online content the same way print content is treated: by asking for remuneration for quality, reliable information.
Still, the magazine industry does hold a strong position on the market. In Germany magazines reach 92 per cent of population. While Rose says that these statistics are partially due to the “noisiness” of the digital era. Customers tend to be overwhelmed by the noisy environment of media provided by television or the internet. Therefore they still look for something what can reach them in more personal way and also demands their entire attention: essentially, magazines.
In order to maximise the ability of magazines to capture the attention of their audiences, a mixed print-digital strategy is necessary. Rose says that print magazines continue to provide the best format for “a good read”, due to the visual appeal of the product combined with the fact that it offers readers a chance to unplug and fully concentrate on the magazine’s content in a tangible way. However, the print product should be combined with interactive, responsive features that only will deepen the engagement of a magazine’s audience. For instance Anna Wintour, Chief Editor of American Vogue, focuses on making sure that the magazine is a luxury and a lavish experience for customers in order to differentiate the experience of reading a magazine from other media.
For Rose, print is here to stay. The demand for professional, reliable journalistic content will not diminish and people have shown that they are willing to pay for that content (in print). The challenge today is to make sure that this willingness to invest in quality content is also shifted to the digital realm.
