Focus on The Market Basket

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2005 The Year of Magazines MPA-IMAG Leadership
Conference June 28th, 2005
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Magazine Industry Coalition Goals

• Catapult consumer magazines to a new place
• Where they are universally recognized for their
  value and contribution to advertising plans
• Generate revenue growth
• Every 1 rise in ad share generates about 1.3
  billion in magazine revenue
• More than 13,800 pages, based on average rate
  card based revenue per page
• Increases revenue for printing, paper and film
  companies
• Based on 2004 TNS Media Intelligence

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Current Coalition Members

• AARP
• Advance Publications
• American Express Publishing Corp
• American Media, Inc.
• Barrons
• Business Week
• Congressional Quarterly
• Crain Communications
• Curtco Media Labs
• Dennis Publishing
• Dynamic Resource Group
• Dwell, LLC

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Current Coalition Members (Contd)

• The Economist
• Gruner Jahr USA
• Hearst Magazines
• Hachette Filipacchi Media U.S.
• Holtzbrinck Publishing Holdings
• IDG
• The McGraw-Hill Companies
• Magpie Media
• Meredith Corporation
• M. Shanken Communications
• NYSS CPA

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Current Coalition Members (Contd)

• National Geographic
• National Journal
• Newsweek
• Playboy Enterprises, Inc.
• PRIMEDIA
• Readers Digest
• Rodale, Inc.
• Scholastic Inc.
• Smithsonian Magazine
• TV Guide Publishing Group
• Time Inc.
• Time Out New York

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Current Coalition Members (Contd)

• International Paper
• Mead/Westvaco Corp.
• SAPPI Fine Papers
• Stora Enso N.A
• UPM-Kymmene, Inc.
• Quad/Graphics
• Quebecor World N.A.
• RR Donnelley

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Key Decision-Makers

• Led by Jack Kliger, Hachette Filipacchi Media
  U.S. and Ed Kelly, American Express Publishing

• Jack Haire Time Inc.
• Tom HartyMeredith Corporation
• William KupperThe McGraw-Hill Companies
• Jennifer MillerSAPPI Fine Papers
• Greg OsbergNewsweek
• LH Puckett International Paper

• Jack BambergerGruner Jahr USA
• Tom Beusse Rodale
• Ann Marie Bushell RR Donnelley
• David CareyThe New Yorker
• Michael ClintonHearst Magazines
• Stephen Colvin Dennis Publishing
• Mitchell Fox Golf Digest Companies

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Target Audiences

• Media decision makers and influencers
• Recognizing that they are magazine readers as
  well as buyers or reporters
• Magazine executives and allied industry members
• We must not just talk, but walk the walk

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Building The Positioning Approach

• Last spring the Coalition hired the marketing
  strategy firm HotSpring
• HotSpring talked with 30 key players about
• Overall media trends and advertiser category
  dynamics
• Different mediums strengths and weaknesses
• If they ran a medium, what would keep them up at
  night . . .

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Building The Positioning Why Now

• Magazines core strengths, while recognized, are
  being challenged
• Cable TV Targeted TV
• Internet Involvement Customization
• Immediacy/Flexibility Requirement
• Traditional Liability
• BUT
• Change is in the wind
• Giving magazines a new opportunity

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Positioning Opportunity/Strategy

• Consumers now exercise more choice and control

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Consumers Reject Intrusion

• Places you would be in support of eliminating
• marketing and advertising

40
38

34
23
16
10
Source Yankelovich Omniplus, February 2004
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Consumers Reject Intrusion

• For which of the following would you say
  advertising gets in the way of you enjoying

Source Roper Public Affairs, 2005
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Positioning Opportunity/Strategy

• Consumers now exercise more choice and control
• Advertising must move from an age of
  interruption to an age of engagement
• Magazines offer unique strengths
• Deliver engaged reach vs. eyeballs

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Advertising engagement varies by medium
Advertising adds to my enjoyment of the following
Source Roper Public Affairs, 2005
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Advertising engagement varies by medium
Very/somewhat positive attitude toward advertising
52
46
30
Source Dynamic Logic AdReaction 4, May 2005
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Positioning Opportunity/Strategy

• Consumers now exercise more choice and control
• Advertising must move from an age of
  interruption to an age of engagement
• Magazines offer unique strengths
• Deliver engaged reach vs. eyeballs
• Improves results in the media mix

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Magazines Improve Advertising ROI
Relative Return on Investment (Index)
TV
100
ConsumerPackaged Goods Brands
139
Magazines
Non-PackagedGoods Brands
100
TV
Magazines
122
Source Ephron and Pollak (MMA),
ARF/ESOMAR Conference in Los Angeles, May 2003
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Program Elements

• Create unexpected advertising

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Program Elements- Advertising

• Coalition selected Fallon NY as ad agency
• Strategy based on magazines delivering engaged
  reach in an age of interruption
• Magazines connect with a million mes
• Advertising launched February 28, 2005
• Uses the future as a device
• Includes the Core Campaign and comp copy
  futuristic magazine cover wraps
• Executed guerilla marketing at network Upfronts

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In the future, well demand up to the nano-second
headlines. Well become accustomed to traveling
at the speed of light. And well still find the
time to slow down with magazines. Read On.
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One day, doctors offices will be virtual.
Families will go on cyber vacations. And people
will still set aside a moment in each day for
something real. Read On.
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Covers Whos Participating

• New York
• Nickelodeon
• Parents
• People
• People En Espanol
• Playboy
• Popular Mechanics
• Premiere
• Primedia
• Readers Digest
• Rodale
• Seventeen
• Shape
• Smithsonian
• Sports Illustrated
• The Economist
• Time
• Time Out New York

• AARP
• Automobile Magazine
• Better Homes Gardens
• BusinessWeek
• Car Driver
• Cosmopolitan
• Cosmo Girl
• Dennis Publishing
• Departures
• Dorcester Media
• Elle
• Elle Decor
• Entertainment Weekly
• Esquire
• Family Circle
• Food Wine
• Fortune
• Good Housekeeping
• Guideposts

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Program Elements

• Create unexpected advertising
• Develop exciting events

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Program Elements - Events

• Inside The Covers A series of events to bring
  magazine content to life
• Focus on a single subject as seen through the
  eyes of editors
• Launch ANA Print Advertising Forum June
  16th
• Advertising Week in NY, September Concept
  Laughing Matters A Look at Humor in Culture

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Program Elements Events (Contd.)

• Communicate major Coalition themes on ongoing
  basis
• Magazine Days
• ANA Print Forum
• National Magazine Awards
• American Magazine Conference
• 4As Media Conference
• CEO Panels

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Program Elements

• Create unexpected advertising
• Develop exciting events
• Use PR to shape perceptions
• Link engagement to magazines ability to improve
  ROI
• This is an INDUSTRY effort

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Annual Goals

• Year 1 Improve the perceptions of the value of
  magazines in the media mix
• As measured through attitudinal research
• As indicated by changes in how people talk about
  magazines
• Year 2 Continue to change attitudes while
  improving magazine advertising revenue
• Based on syndicated and individual company data
• Year 3 Further improve advertising revenue

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Press and Buzz

• Since January 40 articles featuring Magazine
  Marketing Coalitions efforts have run
• NYT Futuristic Covers story
• WSJ Getting Advertisers to Turn the Page on
  Broadcast Upfront guerilla marketing coverage
• Mediaweek article by Nina Link The No-TiVo
  Zone
• Ad Age Bob Liodice/Mark Kaline Viewpoint
• And more
• Read On website nearly 50K visits in May 2005

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Communications Pick Up

• Magazine Speak being used by
• Advertising leaders and other media
• Members
• Sales presentations, materials, speeches,
  interviews
• Ad campaigns (Conde Nast, Meredith, Readers
  Digest)

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Communications Pick Up

• MPA alone touched 4,600 people via presentations
  promoting industry message
• Members
• Advertisers
• Press

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How You Can Participate

• Support the campaign in your publications
• Incorporate Magazines Speak in your sales calls
  and materials based on advertiser input

• Targeting
• Engagement
• Accountability
• Faster Than You Think
• In a with not versus tone

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How You Can Participate (Contd)

• Collaborate on selling to categories/key clients
  that under-use magazines
• Add to case history file
• Participate in industry events and training
• Suggest other ways to increase the odds for
  success

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