You’ve Got Mail: Publishers May Save Billions Through Postal Reform Act

The U.S. Postal Service Board of Governors announcement on November 15, 2007 that all future postal rate increases will be implemented under the CPI-capped index provision of the Postal Reform Act.

The Board is relinquishing its legal option of filing for one last rate increase under the old, pre-reform law.

The Postal Accountability and Enhancement Act of 2006 was passed by President Bush last December. The recent decision to not file another rate increase under the regulations used since 1971, is said to increase the savings for anyone who relies on USPS, including the magazine industry.

Some are convinced that this is the move the magazine industry has been waiting for, “This decision is good news for all mailers—but especially for magazine publishers,” said Nina Link, President and CEO, Magazine Publishers of America.

If this is true their will be large savings for shipping costs and finally some good news to the magazine industry. The rise of e-mail popularity is said to be why the Postal Accountability and Enhancement Act of 2006 was passed- to help the U.S. Postal Service gain more mailers because of cheaper costs.

Ironically, the very reason many print publications are worried about losing money to online publications may save the magazines money as the world shifts to compete with its' ever-changing future, “Having the next increase, which is likely in spring of 2008, and all future increases under the new CPI system will literally save publishers billions of dollars in postage costs in the coming years,” said Link.

Yet, the National Association of Letter Carriers said that (http://www.nalc.org/postal/reform/index.html) not everyone is happy about the Postal Reform Act, “Postal reform finally passed not because everybody was happy with it. Nobody—and certainly not the NALC—was completely satisfied. But that is true for any major legislation that affects millions of people and businesses.”

Link also said if the old law was still upheld the difference would have been huge, “If the 2008 increase had come under the old law, it could easily have been in excess of 20% for magazines – under the new CPI cap, it will likely be no more than 2 to 3%.”

Though some seem certain about the savings others don't see a benefit to the magazine industry. President of Spin Magazine and publisher of 7x7 Magazine, Tom Hartle, does not think the act will make any difference, "I don't think there is going to be any lasting change," said Hartle.

It seems the numbers are showing in the report to be in the magazine industries favor but the only way publishers can be certain if the Postal Reform Act will make a difference is to wait until another increase happens and see for themselves.

To see official The Postal Service’s official announcement click here:
http://www.magazine.org/government_action/postal/25128.cfm

Zinio Announce Digital Magazines

Printed magazines have many uses. They are ideal coffee table mates and a good bathroom companion. Endless hours can be wasted with friends debating over why that Hollywood starlet is really in rehab, as well as providing light reading. And they are the best fly swatters.

Magazines are now being digitalised for downloading onto Apple’s iPhone and iTouch devices. Zinio Labs recently released a press statement explaining their plans to introduce Zinio Mobile Newsstands to allow users to download a selection of magazines onto their iPhones.

Zinio describe themselves as ‘the leading digital and publishing platform for magazines and books’ and the CEO, Rich Maggiotto, is enthusiastic about its partnership with Apple and their ability to help publishers reach new brand of readers.

“Users will benefit from having their magazines in a high-fidelity, portable format that can be viewed practically anywhere,” says Maggiotto. As for the reasons why he chose Apple’s shiniest new gadget, he adds that it was “natural for the launch of the Zinio Mobile Newsstand […] With its advanced touch screen technology and crisp viewing experience.”

The magazines will be digitalized in its entirety and loyal readers will not miss out on sections and articles that they would usually get with a print edition. As a bonus, they will also initially be offered for free and can choose international editions too.

There are obvious upsides to having all the issues of your favorite magazines held in the palm of your hand. No longer will you have to search through dozens of issues to find that one recipe to show your friend, instead you’re able to find it with a touch of the screen. It could also lead to less ink and paper wastage and be an end to those annoying advertising inserts.

Zinio assure that no advertising opportunities will be lost through their marketing programs which include “cross-promotion to seamless production services, a robust e-commerce engine and extensive digital delivery, circulation and fulfillment services.” However, it may have an affect on pass-along readership as many people could feel reluctant on passing on their expensive iPhones and iTouches – even to their friends.

But will it really be an instant hit? Apple’s products are eagerly waited for and fly off the shelves quicker than the factories can cope. The iPhone sold one million units within its first 75 days of release. However, it is well-known that many of their products, particularly first generation versions, are littered with bugs that affect its overall performance and the company release updated and next generation models within a year.

Currently the iTouch has come under some criticism for the screen freezing and therefore not allowing the device to function properly. Surely this would present a huge problem when reading a magazine on the iTouch.
With popular magazines such as Men’s Health, NME, Playboy and Popular Mechanics among others available for download, it maybe a wiser idea for Zinio, if not readers, to wait until Apple solves their bug problems before downloading the newest issues.

After all, you can't roll up an iPhone to swat a fly.

Fresh Air for Elle

The fashion magazine Elle has long been losing its edge. The magazine has been stuck in third place behind Vogue and In Style for years, but Elle refuses to remain stagnant and predictable any longer. With the magazine’s redesign in September, Elle has proved to its readers that it still has the content for a cover-to-cover read. For the last three months Elle has recreated itself in a subtle, but exciting way.
The initial redesign buzz was caused by the editor's choice to put Lindsey Lohan on the cover. Readers responded hesitantly at the choice to put a relapsing drug addict on the cover of the respectable publication. Despite the executive decision readers were impressed by the magazines bold move to increase the health and fashion features and investigative reporting sections and cut down on the needless yip-yap. The magazine focused mostly on expanding the editorial content to attract readers. Elle has widened the fashion news section and provided readers with insider information. This attracts the intelligent fashion reader, who is not only interested in the clothing, but also the industry.
The redesign also addressed layout and content for the pages. The design team worked to slightly clean up the clutter of the spreads by modernizing and simplifying. In addition, a fresh team of writers and photographers are now delivering the content.
The long-time creative director Gilles Bensimon, 63, is now stepping down from his position and allowing Joe Zee to take his place. Another fresh breath for Elle is the new editorial director, Amy Gross, who was hired from Mirabella to help Elle. These small changes have resulted in a huge applause from its readers.
The new leaders of Elle have helped to redirect and refocus the magazine to keep it on track, modern and much better than before.

OK! Magazine Goes German

Some people may roll their eyes at the idea of celebrity gossip magazines, but it’s definitely not

stopping the widespread popularity of the infamous magazines. OK! Magazine is one of many

magazines that is expanding their horizons and planning on dominating yet another country.

OK! Magazine documents the lives and careers of celebrities and gives the readers every last gruesome detail of life in the shoes of a celebrity. The magazine claims to be “the first for celebrity news” and is now preparing to take on Germany and bring them the dirt on the lives of Hollywood’s finest.

OK! Magazine is already an international title, but has now partnered with a German publishing company to produce a German language version of the magazine. This edition will be launched in the first half of 2008 in Germany, Austria, and the German-speaking areas of Switzerland according to Jason Fell of Folio Magazine. With this new addition to the OK! Magazine family, there will be a total of 16 countries that house the title.

Now some may wonder what exactly is so appealing about having to know everything about celebrities and why these tabloid magazines do so well on the newsstands. The latter is obvious, they are right in front of you and at a very cheap price and your subconscious just happens to grab it for a quick read at the gym (it’ll keep you on the machine longer is what I like to tell myself!). As for why we find the lives and everyday happenings of A-list stars so appealing is beyond me, and I am an avid reader of these tabloids! They take a look at a life that is beyond your imagination and they give you a glimpse as to what it would be like to live life in the fast lane, even though it may only be for the hour long read at the gym.

As for OK! Magazine launching in Germany, I can only imagine it will do wonders over there as it has made its mark here as well. Even though it may not be the most reliable magazine and the facts may be a little misconstrued, it is a widely known publication and it gives readers what they crave and as long as they keep serving up more of the same, they should soar in Germany just as they have everywhere else.

Advertise in magazine or suffer the consequences

Of any media, magazines are the best to advertise in. Countless studies have proved that magazines advertisers see the biggest results. Here are a few of these studies:

Dynamic Logic, a major research firm, with their survey, CrossMedia Studies 2006, showed magazines were three times more likely than TV and six times more likely than the Internet to produce purchase intent in automobile buyers.

Source: http://www.magazine.org/content/Files/mpaADWEEK012007.pdf

The Online Publishers’ Association found with a 2007 survey that viewers of video advertisements on magazine Web sites were more likely to check out company Web sites and were more likely to go to a store to check out product than the viewers on News sites, Web Portals and User generated content sites.

Source: http://www.magazine.org/content/Files/MAG%2Dproof%2Dff.pdf

Marketing Evolution, with a survey in 2006, found that magazines made viewers more aware of the brands advertised than TV or online. They also found that magazines were more likely to increase purchasing intent, which is often considered the most important part of the purchasing funnel, than TV or online. Both studies were included in a pamphlet published by Magazine.org, which concluded that magazines were the most consistent performer for advertisers, rather than TV or online.

Source: http://www.magazine.org/content/Files/AccountabilityII.pdf

A study by Media Choices found that more adults trust magazine advertising than advertising on network television, cable television or the Internet. A Neopets Youth Study discovered the same thing about teens.

Source: The Magazine From Cover to Cover (p. 28), Sammye Johnson and Patricia Prijatel Copyright 2007.

Case studies also show that magazines advertisers see great results. Magazine.org list over 150 successful case studies. These are just a few of them.

Harley Davidson purchased a full page spread in a magazine for an ad titled Black and Orange. Ads that year, 75 percent of which were in print magazines, raised sales more than 40 percent from the year before.

Boeri Helmets purchased numerous magazine ads ranging from small spaces to full pages in 2002. They targeted snow enthusiasts through niche magazines. After their campaign, which was 75 percent magazine, they were the number one helmet brand in the snow industry.

LL Bean, a brand that became famous from catalogs, targeted 35-54-year-old males with above average incomes. They used magazines to “to precisely target L.L. Bean’s more affluent customer and are a proven response environment.” Their results were a 15 percent increase in catalog requests and a 50 percent increase in new buyers.

Source: http://www.magazine.org/Advertising_and_PIB/Case_Studies/index.cfm

Maybe We Don't Love Them That Much

How much do we really need to know about celebrities lives? How much money are we willing to spend to know every true or false detail about A-lister's every move?

A recent increase on the sale price of a couple of well known celebrity weeklies may answer these questions.....



In Touch and Life&Style both raised their sale price of $1 to $2.99 a few weeks ago. The single copy sales price of each has gone down by at least 10% from the first half of 2007. Is this a meaningless coincidence or should the industry be more thoughtful as to how much Hollywood in worth to readers?



According to a few industry sources, a few weeks isn't enough to determine whether or not the inflation has anything to do with the consumption decline. They also admit that fall is a down time for most celebrity readings.

My guess is that they're right. Maybe some people see the $1.99 increase, gasp, ponder, and reconsider their purchase. After all, they could really use that money to buy the rest of Thanksgiving dinner or Christmas present for little Timmy. I'm sure after the holidays things will be back to normal and that price change will remain, sucking more out of our pockets to read things that don't matter.

Rolling Stone takes the Heat for the Camel Ad

In the Nov. 15th issue of Rolling Stone the magazine printed a Camel cigarette sponsored ad promoting a website and campaign devoted to “free range music” that supports independent record labels.

It seemed like a harmless campaign at first, but all bets were off when Anti smoking Activists heard about Camel's involvement in the project.

The cartoon insert is among several other inserts in Rolling Stone’s 40th anniversary issue. These inserts are what the magazine industry refers to as “butterfly gates” in which there are ad pages on the outside but it unfolds to reveal pages of articles inside.

The article inside the “butterfly gates” features, “Indie Rock Universe,” which presents a list of independent bands and a out of this world picture of planets, animals and spaceships by Benjamin Marra.

Although this was a creative way of promoting the campaign/website the magazine found itself under fire by several Anti smoking Activists. According to activists it blurs the line between advertising and editorial content.

“The fact that Rolling Stone produced the content, but displayed it in such a manner that it is indistinguishable from the Camel ad, only makes them an accomplice,” said Matthew L. Myers president of the organization, Campaign for Tobacco-Free Kids, in Washington, in an interview with The New York Times.

According to Myers the insert might violate the 1998 settlement between tobacco companies and state attorneys general because the pictures look like cartoons, which can no longer be used in cigarettes ads.

“The insert is particularly egregious because Camel is most notorious for using cartoon characters to market cigarettes to children with the now-banned Joe Camel,” Myers added.

Even though Camel sponsored the ads they disputed the complaint and take no credit for the editorial content.

“There was a clear delineation between our ads on the outside pages and the inside foldout, which is all editorial content from Rolling Stone,” said David Howard, a spokesman for R.J. Reyonds Tobacco in Winston-Salem, N.C., in an interview with The New York Times.

After Camel’s spokesman made this comment it seemed at first that Camel was not willing to take responsibility for their actions. But after The New York Times interviewed someone at Rolling Stone, It was determined that Camel was telling the truth about the editoral content of the ad.

“Reynolds Tobacco had no idea it would take a cartoon format because the advertisers don’t know in advance about articles, just as the editors don’t see the advertising,” said Ray Chelstowski the Publisher of a unit of Wenner Media at Rolling Stone

Even though, Camel cigarettes had no idea what the cartoon format was going to look like it still suspiciously seemed like it was a cigarette ad.