Fulcrum Blog

Received your copy of Golf for Women lately? How about Stuff or FHM? Domino?

You won’t be seeing these titles in your mailbox any time soon. It was reported by MediaFinder.com that in 2008 more than 525 US magazines went out of business, and 40 had ceased publication in 2009 at the time of their report. I found a nifty web site, aptly named The Magazine Death Pool and appropriately written by “the Reaper” that’s been keeping track of the blackouts, as well as predicts which ones are next. Today I read in the New York Times online that Conde Nast closed the doors on its hyped business magazine, Portfolio.

An obvious contributor to Conde Nast’s decision was that the magazine’s advertising pages were down 60.9 percent in the first quarter of ‘09 compared with Q1 ’08. This seems to be the kicker for many of the failed magazines. In the midst of a recession, that certainly isn’t surprising. But the increase in online news consumption in a “want it now” society, coupled with the decreased costs of publishing online, have played an important role as well. Some magazines that haven’t folded altogether have moved to online only publication, like PC Magazine. Others are trying to stay alive in other ways.

My husband and I recently started receiving a monthly copy of Latina Magazine and Black Enterprise. We’re not paying for either subscription, and while the content of both magazines can still be applicable to us, we’re as Caucasian as they come. If magazines are struggling, is throwing darts into thin air with a blindfold on really their best attempt at survival? While I’m sure there is some rhyme or reason to our receipt of these magazines, possibly a better investment of their dollars would have been some deeper demographical and psychographical research to find a dedicated following.

We also receive two copies of Men’s Journal each month. One is in my husband’s name and I’m sure the one year subscription we paid for has expired. The other is in the name of someone we do not know. And it is not the name of the previous owner of our home. We’ve been living there three years and who knows how long the people before us were there. So why, then, is Men’s Journal still sending a magazine to this man if he hasn’t lived at the address, or presumably paid for the magazine, in at least five years?

Other magazines we’ve subscribed to in the past also seem to continue coming, even if we haven’t re-upped for another year. We now receive monthly pleas from them to re-subscribe, at a lower rate each time. Some of the rates are so low it’s amazing how they could even cover their costs. This makes them seem desperate and raises the question of whether they’re creating their own slippery slope by de-valuing themselves (if I can get it for free, or hold out for a really cheap subscription, why pay the regular rate?).

I love being able to get news online, but in spite of that, the Kindle, and the otherwise saturated news market, I feel like the magazine will always have a place in my life. It’s nice to have something for guests or bathroom dwellers to flip through; I like the option of reading lighter, shorter stories than picking up a book all the time; and I don’t ever plan on replacing the pretty photos and layouts I get to look at while lounging poolside with any sort of electronic device. I also enjoy seeing a fresh copy of Elle Décor or Redbook when I get the mail as opposed to a bill or another piece of junk mail.

The question is… if there is still a market for magazines with households like mine, how can they save themselves from all out demise? I don’t know that there is a straightforward answer, or a simple solution, particularly during these strained economic times. But I think a good start would be some focus. They should stop spending money fishing for new subscribers that don’t fit their demographic, sending magazines to people who are no longer paying, or begging for subscribers at next-to-nothing rates. Magazines should find their core who are willing to pay a reasonable rate for a subscription, and then cater to them to keep them reading. In some cases, this will mean sacrificing quantity for quality and explaining that to their advertisers. But in the end, wouldn’t they be more inclined to continue advertising if they trust they’re reaching the right audience, and they are seeing results?

What else do you think magazines can do to stay afloat?

Online communication has transformed our lives, and we aren’t done changing yet. The Internet is increasingly dominating how we do business. If you don’t recognize those facts, let a recent McKinsey & Company survey fill you in. The consulting company surveyed marketing executives around the world (you can read the abstract here) about how they use the Internet in their sales and marketing efforts and how they see that changing by 2010.

The study showed that companies are increasingly moving their marketing activities online, from product/company discovery all the way to servicing the buyer, and “they see online tools as an important and effective component of their marketing strategies”.

Since I don’t consider this news, the more interesting information is that the respondents said by 2010, less than three years from now, they expect the MAJORITY of their customers to discover new products or services online, and that 10% or more of their sales will come through the Internet … doubling the number of companies that are doing that now. That means twice as many companies will get 10% or more of their sales online in less than three years.

If that isn’t a wake-up call, then I don’t know what is. No matter what you do or what you sell, whether it seems like the Internet is important to your business or not, you need to adapt. How? Start by getting your website to be a sales tool you can’t live without. Take a step back for a second and put yourself in the shoes of your target audience. Open your website and ask yourself the following questions (if you don’t have one yet, re-read the beginning of this post and find your nearest web developer as quickly as you can):

If you answered “no” to any one of these questions, think hard about what’s next and how much you can afford to invest in your online presence. If you answered “I don’t know,” take a few minutes to find a free site analysis tool and get someone else’s opinion.

If you’re feeling overwhelmed, don’t. It isn’t as hard as it seems, you just have to do it. And finding a trustworthy marketing partner invested in your success can help a great deal. Only after you’ve addressed your basic site can you can begin learning more about online service options, e-commerce and social media. But you’ve got less than three years, so get started.

Bulldog Reporter and TEKgroup International, Inc. just released a study that shows journalists are increasingly relying on the internet and social media to keep up with news and develop stories. The study reports statistics such as:

• 70% of journalists follow at least one blog regularly.
• More than a quarter visit a social media or networking site, such as YouTube, Facebook and MySpace, at least once a week. Almost 45% visit at least once a month.
• 37% receive at least one regular RSS feed.
• 64% use online news services.

Since you’re reading this blog, you obviously have some interest in new media. Whether you’re a rookie or a veteran, this study shouldn’t surprise you. Web 2.0 is here to stay and from reporters to customers, we have to adapt our strategies to stay relevant.