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Belch: Advertising and
Promotion, Sixth Edition
V. Developing the
Integrated Marketing
Communications Program
12. Evaluation of Print
Media
and U.S. News & World Report. The Ivy League Network is a consortium
of alumni magazines of Ivy League schools and one non-Ivy,
Stanford University. Advertisers can purchase ad space and reach the
well-educated, affluent alumni of all eight schools with one media
purchase through the network (Exhibit 12-12).
The Future for Magazines
Like other major advertising media, magazines are strongly impacted
by the economy and the increases and decreases in ad spending that
occur with changes in economic situations. The past several years
have been very difficult for the magazine industry; many publications
experienced reductions in revenue as advertisers cut back on spending
due to the recession. 19 Many publications saw their number of
advertising pages decline and found it difficult to raise their rates to
offset the reduction in ad pages. And while advertising revenue has
been decreasing, publishers’ other major revenue stream, circulation,
has also been declining. A number of magazines, such as Working
Woman and Industry Standard, could not survive these reductions in
revenue and ceased publication. 20 Several computer/Internet magazines
were impacted by the reductions in ad spending by dot-com and
computer companies and went out of business, including Family PC
and Yahoo! Internet Life.
While the health of the economy has a major impact on the magazine industry,
there are a number of other important issues facing the industry. The costs of paper and
ink continue to rise, and the industry has had to weather several significant increases in
postal rates in recent years, which have had a major impact on their cost structure. 21
Magazines are also facing strong competition from other media such as television, the
Internet, and direct mail; and, as discussed in IMC Perspective 12-3, they are being
asked to demonstrate that they can build brand awareness and help increase sales. Publishers
are looking at a number of ways to improve their position—including stronger
editorial platforms, better circulation management, cross-magazine and media deals,
database marketing, technological advances, and
electronic delivery methods—to make advertising in
magazines more appealing to marketers.
Stronger Editorial Platforms Magazines
with strong editorial platforms that appeal to the interests,
lifestyles, and changing demographics of consumers
as well as business and market trends in the
new millennium are in the best position to attract
readers and advertisers. For example, Fast Company
has been successful by developing a different type of
business magazine that provides readers with information
and ideas for succeeding in the modern workplace
(See Exhibit 12-13). Publications such as
Maxim, FHM, and Stuff have been very successful at
targeting a group described as “adultescents,” 18- to
34-year-old males who cling to the trappings of youth
culture. 22
Circulation Management One of the major
challenges facing magazine publishers is trying to
increase or even maintain their circulation bases. Circulation
is the second major source of revenue for
most publications, and publishers must carefully
manage the costs of attracting and maintaining additional
readers or subscribers. The cost of acquiring
subscriptions has increased dramatically over the past
decade. At the same time, there has been a decline in
© The McGraw−Hill
Companies, 2003
Exhibit 12-12 Advertisers
can reach alumni of Ivy
League schools through the
Ivy League Network
Exhibit 12-13 Fast
Company has been successful
as a new type of business
magazine
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Chapter Twelve Evaluation of Print Media