Audience development sabatier

Audience Development

Basic and Advanced Methods to Acquire & Retain Readers

Advanced Magazine Institute

India 2012

Entire contents © 2012 Sabatier Consulting LLC All Rights Reserved

What is it?

Audience development creates the audience who

receives the magazine (print or digital), e-newsletters,

visitors to your website, etc.

Audience development enables your magazine and

website to monetize the audience by providing the

content that they value and thus, will pay for. It also

offers a market for advertisers enabling the magazine to

sell ads and other products and services.


What is it?

Audience Development plays a key role in the success of

a publishing operation.

o In some cases you will be tasked with creating an integrated

database to permit the magazine to engage customers at every

touch point.


Where do I begin?

The first step is to determine what the goals are for the

magazine and the website

Example: Does the business model anticipate that circulation

revenue will contribute X% to the overall operation? If so, then you

begin from that point and work backward to plan and budget for

promotion tactics that can help you reach that financial goal.

If the publication is strictly missional and will be supported by funds

from donors or an organization, how will you measure success in

terms of distribution of the publication and/or visitors online?


What questions should I answer?

Who is the primary audience? (characteristics,

preferences, need we can fill)

Is the audience different from print to online (website and

digital)? If I do not know, how can I find out?

How does this audience access (find, purchase, visit)

similar content (magazines and online) at this time?

Who is my competition and how are we different (the

value proposition)?


What is an appropriate budget?

This is a difficult question to answer; it is based on your

overall goals. But the best way to budget is to create a

detailed plan with estimates to generate subscriptions by

source and then see what that total is. You then make

adjustments to the source, quantity of promotions, mix of

sources used, etc.

A calculation that is helpful to use is to develop a “cost

per subscription” for EACH source you use. Example: Insert cards-avg. cost per sub $16; direct mail-avg. cost per sub $42;

email-avg. cost per sub $18; paid search keywords-avg. cost per sub $7.50, direct

mail agency-avg. cost per sub $20; online ad (your site)-avg. cost per sub $2.50,

etc.




The first line of offense in any circulation plan is

renewals, the most inexpensive way to maintain your

desired circulation level.

Total circulation is multiplied by the average renewal

rate to get the number of renewals anticipated. Include

any percentage increases you expect to garner from new

strategies or increased postage and/or vendor costs

involved. Then multiply that figure by the average cost

per renewal to arrive at the budged needed to promote

renewals.



Once total response from renewals is computed it is

subtracted from the circulation goal to get the target

number of new subscriptions needed to maintain

circulation at the current level.

Take the number of new subscriptions needed and

multiply that number by the average cost (all sources) to

obtain a member (subscriber). This sum represents the

budget needed for new promotion.

The two sums added together (renewal budget and new

promotion budget) equal the budget needed to maintain

paid subscriptions at the current level.



SUBSCRIPTION PROMOTION ANALYSIS CIRCULATION BUDGET WORKSHEET

This example is for promotion only. No salaries or overhead is included. The point is to illustrate the promotion budgeting begins with renewals followed by new promotion which together create the circulation marketing budget.

Individual Subscriptions Status Quo

120,000

Revenue/Ren $51 Subs due to expire in 2010 55% 66,000

Revenue/Sub $30

Average cost to renew

$5.00 Estimated average cost for new subs

$36.00

Scenario I

Scenario II

Scenario III

Renewal Budget STATUS QUO

Revenue Revenue Revenue

Individual Subscriptions Status Quo 120,000

120,000

120,000 Subs due to expire 66,000

66,000

66,000

Average renewal rate 42% actual 44% 5% lift 46% 10% lift

Renewals obtained 27,720 $1,413,720 29,106 $1,484,406 30,561 $1,558,626

Balance needed to maintain 26,280 $788,400 24,894 $746,820 23,439 $703,161

Estimated renewal budget $138,600

$145,530

$152,807 Estimated promo budget to maintain $946,080

$896,184

$843,793

TOTALS $1,084,680 $2,202,120 $1,041,714 $2,231,226 $996,600 $2,261,787

PROFIT/LOSS

$1,117,440

$1,189,512

$1,265,188

Growth Rate Options Below is the effect of building circulation above the status quo for any scenario

Add

Addl Subs

Addl Expense Addl Revenue

Addl Profit/Loss

5%

6,000 $216,000 $180,000 -$36,000 10%

12,000 $432,000 $360,000 -$72,000

15%

18,000 $648,000 $540,000 -$108,000 20%

24,000 $864,000 $720,000 -$144,000

Worksheet for sources


Effective marketing satisfies a primary emotional

driver.

Consumers to people

Publications, products, services to experiences

Honesty to trust

Quality to preference

Identity to personality

Service to relationship


Key point about sources.

It is very important that your subscription promotion plan incorporate more than one way or method to generate paid subscriptions. Sources ebb and flow so using multiple sources can help keep circulation stable and allow you to continue to test.


Renewals

Direct Mail

Direct Mail

Direct Mail

Direct Mail

This source has been the primary source for new

subscriptions to-date because a) lists are available to rent

for prospecting, b) costs can be reasonable, and c) it can

generate “volume” which many other sources cannot.

Increased package and postage costs and dropping rates

of return, however, create a cost per order that is can be

outside tolerance range

Consumer magazines avg. gross response rate 3.12%,

net response: 1% to 1.8%, bad pay: 42%. Conversion

rate: about 35% (those who will renew first time asked)

DIRECT MARKETING TRENDS – What’s Happening in our Industry

TREND OPPORTUNITY/

THREAT BUSINESS IMPACT

EMPOWERED CUSTOMERS

CHANNELS ARE

PROLIFERATING

ADVANCES IN

TECHNOLOGY

SATURATION

CONSOLIDATION

OF MEDIA

RANKING &

SCORING INDIVIDUALS

Declining response rates, competitive

vulnerability

Difficult to measure “silo” ROI

Greater agility, but increased complexity, and

need for integration

Yields are decreasing at a greater rate

Costs are decreasing

Targeting offer and message to high

propensity prospects

THRE

AT

THRE

AT

OPPO

RTUNI

TY

THRE

AT

OPPO

RTUNI

TY OPPO

RTUNI

TY

Strategy & Planning

Execution

Performance Management

PERFORMANCE MANAGEMENT

Program Management & Budgeting

Media Cost Management & Reporting

Performance History Housing, Reporting &

Analysis

Marketplace Intelligence

Media Key Performance Benchmarking

STRATEGY & PLANNING

Strategic Media Consulting, Optimization &

Development

Monthly Campaign Goals

Media Research and Recommendations

Media Allocation Analysis

Mail Plan / Media Forecasting

EXECUTION

Media Negotiation and Procurement

Post-Merge Recommendations

Media Processing, Invoicing, Reporting

Customized Invoice and Production Reports

CAMPAIGN MANAGEMENT PROCESS

A rigorous, detail-oriented process ensures the best performing segments are mailed for every campaign

DATA DRIVE – A Better way to Build Your Audience

NEW

LISTS

& DATA

RESPONSE &

TRIGGER

DATA

RESPONSE

LISTS

CO-OPERATIVE

DATABASES

COMPILED SOURCES

Long time high volume direct marketers are experiencing higher

costs and flattening performance

• Identify strategies to improve efficiency and

reduce costs

• Quantify each list segment’s contribution to

your results

• Through ranking, scoring and modeling ,

identify individuals who respond at lower

cost

• Negotiate with data and list providers based

on each list/segments relative performance

ANTICIPATED RESULTS

• 10%-30% reduction in cost with

no impact to performance

• Audience expansion of 5%-10%

• Sustained cost efficiencies

through continual negotiations

Gifts

Gifts

Can be a very good source for new and renewal

subscriptions and can possibly contribute as much

as 20% of your file activity.

Many publishers offer special pricing, example:

give a gift and give the second one at half price or

renew your own subscription and give a gift for $x

When renewing gift subscriptions, always go to the

donor first with at least three renewal offers then go

to the recipient.

Insert Cards

Insert Cards

Insert cards are those “pesky” subscription cards

that are stitched or blown into your publication.

Keep offers simple, one year introductory term. Do

not offer renewals on insert cards; this is for new

subs only.

There are various formats. Print at least two issues

worth at a time for volume pricing.

In the US, average cost per sub (cost to print and

bind or blow into publication/number of subs

averages from $15 to $20 each)

Magazine Cover Wrap

Invoice Billing Series

Often the bill

series has four

efforts; one a

month, each

with increasing

urgency in the

copy.

Internet

Web promotions represent from 5 to 25% of new

acquisitions and renewals, but these subs can be highly

profitable

Very important to understand who is coming to your site

and why; demos can be very different from print; frequency

of visit is important

Understand the reach of your site: how many visit regularly

from outside your market (are you the expert on your

market?)

Internet

Backpacker Cover Ad

Internet

Vegetarian Times Cover Ad

For many, one of the best performing promotion on their site

25-35% of total gross orders

35-50% of total net orders

Home page has cover in prominent position above the fold

If possible, have on every page in same position

Internet

Cover Ad

Form

Pay now

link

Internet

Cover Ad

20-25% of total gross orders

25-30% of total net orders for some titles, 10-15%

total net orders for other titles

Depending on audience, can create controversy

for visitors/users

Can cause customer service complaints especially

for current subscribers

Include visible close button

Internet

Pop Up

Vegetarian Times Text Link in Nav Bar

Internet

Internet

Text Link in Nav Bar

Internet

Promotion brings in a steady stream of orders even though it is small and hard to see

Attracts committed buyer 7-12% of total gross orders 7-20% of total net orders

Renewal Links

Gift subscription links

International subscription links

Sub offer at end of articles

Sub offer in e-newsletters

Text links in footers

E-bills & E-renewals

PLACEMENTS WITH INCREMENTAL VALUE

Internet

Use the internet as a source to test prices because

get results so quickly

Your financial circulation goals matter- do you want

volume of subs or high revenue per sub, but less

subs?

What works online…TEST

Internet

Low price works for more mass appeal titles

Higher price works for titles with audiences that are

less price sensitive & used to paying a higher price

1 & 2 year price offer may work for more niche titles

with lower volume

1 year only offer may promote higher volume

What works online…TEST

Internet

• Helps to make the offer more visible on the

website

• Change premiums regularly

• Use repurposed content that complements

the magazine (not new content). Work with editorial staff

Evergreen content & content that customers can use again and again works

well

Examples: checklists, user guides, recipes, exercise routines, travel guides,

screensavers

• Low price works for more mass appeal titles

What works online…premiums

Internet

Internet Paid Keywords Sample Report

Weekly Gross Orders Report

9/16/2008 9/9/2008 9/1/2008

Name of Promotion 9/22/2008 9/15/2008 9/8/2008

Magazine cover ad 100 150 175

Sub Link in top nav 50 40 45

Text Link after every article 5 5 3

Link in Magazine editorial Button 80 70 85

Embedded Forms 100 135 110

Pop up 70 60 55

Newsletters 25 20 15

Resuce Pop Up 10 10 15

Yoga Journal Upsell on BPK 2 0 1

Foreign Page 75 65 68

Canadian Page 40 35 37

Total 557 590 609

Paid Search

Google Paid Search Ad

New England Journal of Medicine Paid Search Advertising

Landing Page

Paid Search

% of Paid Search Revenue by Transaction Type - FY06

3%

3%

2%

Subscribe

47%

Register

31%

Renew

12%

1%

Subscribe

Register

Renew

CME

Pay Per View

Pay For 24 Hour Access

Pay Bill

New England Journal of Medicine Paid Search Advertising

Most publishers have used email for retention versus new promotion (doesn’t draw numbers)

Key drivers to performance include quality of list of email addresses; subject line-to the point; length; file size and download speed

Make sure copy is not being filtered – avoid trigger words-spam content

Email appending is growing – purchasing of lists with perpetual license and appending to your subscriber or prospect list

Email Marketing

Try to capture an email address for every customer

Email Marketing

The message must hit a nerve to get people to open it and

then the benefit message has to be quick

What is the hook? What makes it stand out?

Make it easy to forward to colleagues

Best response is achieved through judicious use and in

conjunction with other sources

Example: email and direct mail; email and link to special

landing page; email then telemarketing (for B2B)

Email Marketing

SEND TO:

Email newsletter subscribers

Magazine subscriber email addresses

Follow opt-in laws

Broadcast email

Email Marketing

TYPES OF PROMOTIONS:

Combo offers with other magazines

Voucher type subscription offers

Gift subscription offer in December

Third party email blasts

Response Rates for in house promotions: .2-.8%

Broadcast email

Partnerships

Academic institutions

Non-profits

Aligned member organizations

Advertisers

Retailers

Other publishers

Partnerships

Understand your brand and how it relates to partners.

Create a wish list

Define volume and expectations

Leverage your resources – work with everyone in the

company. food magazine subs through a culinary class program (bundled w/class fee)

business magazine with career development courses

Attendee Lists

Seminars/Conferences

Events

Webinars

Dinners

Advertisers

Lists

Links

Sampling (promotion must be obvious) Tricky to execute: case by case basis

Example of diabetes link on pharma site

Example of Preemie

Public Relations

Editor/Publisher/Exec. Dir appearances

Demonstrate editorial leadership in print, online and in

person

Research: conduct proprietary polls and studies then

promote then (This can bring a big boost to small budgets)

and sell a sponsorship to pay for the research effort

Track Subscription Promotion

Track promotions – all promotions through unique coding and

documenting costs and (when possible) revenues tied to the

customer

Closing thoughts

A passionate consumer connection is the cornerstone of

smart business strategy and audience development.

With magazines, publishers tend to lose money on sub

acquisition and make money on renewals.

The most important thing in all aspects of circulation

management is the ability to take the long view.

Business

Audience development sabatier