Modern Luxury – the bad boy in the magazine business

There is no doubt about it. The cover is beautiful. The photograph, the model, the lighting, the clothes, the glossy paper. It is all beautiful. And when you open the magazine, you will find that the glossy beauty just continues. Page after page, your eyes are meet MET with the most eye-soothing commercials, mouth watering food and restaurant close-ups, pictures of the "who's who" in town, laughing and partying in dazzling clothes. The magazine I am talking about is from the publishing company Modern Luxury, a publishing company that despite the glossy surface of its products is looked upon by many in the magazine business as the "bad boy".But what is this Modern Luxury? Let's begin by looking at what is behind those glossy pages…

Spreading like wildfire

Modern Luxury is a publishing company that today prints no less than 30 magazines in 12 states. The magazines are divided into five subcategories: "Brides," "Imperious," "Men's Book," "Front Desk," – see note- and "City Magazines." Michael Kong and his brother Stephen founded the company in Chicago 1994 with the Magazine "Chicago Social." It is Kong´s niche for "luxury lifestyle" publishing, and his strategy of hooking up L.A.'s "influential" consumers to a glossy kaleidoscope of luxury-product ads that has put the company in the position it is today. (Article 5)

"Luxury magazines have been spreading like wildfire," said Peter Kreisky, president of Kreisky Media Consultancy recently to LA times. TIMES (Article 2)One reason for this is the controlled circulation, in which companies send free magazines to people living in affluent ZIP Codes—a model the company Modern Luxury uses strategically.

Luxury magazines appeal to advertisers and investors because they can reach a specific type of consumer in a way that general circulation publications can't. (Article 2)And this is really what Modern Luxury is all about. The company knows there is a need for advertisers to spend their advertising money on a target audience, and with the magazine they can give them such an audience.Modern Luxury is filled with ads from national luxury brands such as Hugo Boss, Neiman Marcus Group Inc., Cartier, Bang and Olufsen, Louis Vuitton and Roberto Cavalli. Because there has been an explosion of luxury goods worldwide these companies have advertising money to spend, and the advertisers wish to be as specific as possible to reach their target audience. In that way the success of Modern Luxury follows the success of the luxury brands worldwide.It is therefore wrong to think that the publishing company of Modern Luxury does not have a mission – they very much do – but the mission seems to be about providing the link between advertisers and consumers and making a whole lot of money.

When the controlling stake in Modern Luxury in November 2004 was bought by Shamrock, Modern Luxury published only three magazines: one in Chicago, Los Angeles and Orange County. That gave total revenue of $18 million a year.Today Modern Luxury has expanded into nine more markets and increased revenue to $70 million. This means that the company now reaches 645,000 households and 3.5 million readers a month. (Article 2)Modern Luxury and Clarity, a Beverly Hills-based placed company, which manages $1 billion in assets, plan to continue to grow by branching out into new markets nationally and internationally, and by acquiring other regional magazines. (Article 2)

Critique

The close relationship with the advertisers has, however, caused the publishing company some trouble. The company found itself under fire in some cities, including San Francisco. (Modern Luxury publishing bought San Francisco Magazine in 2005. (Article 4)

In January 2006, the San Francisco Chronicle wrote a story about how the magazine decided to pull an in depth story because the story could have offended an advertiser.In defense, the founder of Modern Luxury, Michael Kong, said that the magazines of Modern Luxury generally contain articles on lifestyle, fashion, arts and culture, rather than investigative journalism. (Article 2)"As a general industry statement," he said, "It's very hard to make your living in the news and information area as a monthly magazine.".

What now?

What is interesting about Modern Luxury is that the structure and business plan has proven to be very successful.

The question therefore is of course – what now?

Will other magazine companies follow the structure of Modern Luxury?

What will the buy-up of other magazine by few companies mean in the long run for the magazine business?

Will the development in the magazine business continue in the direction of synergizing with advertising companies?

Will the advertisers gain more control over the editorial in the future, and if so, what will this mean to democracy?What do you think?

Use the link below to write a comment and participate in the discussion.

Notes, links and facts:Note: ("Front Desk" is not a magazine as we know it. It is more like an advertorial that is made in association with selected upscale hotels in the 12 cities. "Front Desk" is full of suggested commercial restaurants and nightclubs.)

The 12 cities

Atlanta

Chicago

Dallas

Honolulu

Houston

Los Angeles

Miami

Napa-Sonoma

Orange Country

San Diego

Washington DC

San Francisco

Links and resources:

The information given in this blog has been collected from the following articles and homepages:1) Modern Luxury homepage: http://mail.djh.dk/Redirect/www.modernluxury.comArticles:2) - "Defying slumo by pursuing the rich", Los Angeles Times, by Alana Semuels, Times Staff Writer, May 21, 20073)- Shamrock Capital Growth Fund Invests in Modern Luxury Media, LLCBusiness Wire, Nov 15, 2004 4) - Article "Done Deal" link: http://mail.djh.dk/Redirect/www.modernluxury.com/ml-web/press/wwd_2007-05-31.html5) To read an interview with the founder Michael Kong go to: http://mail.djh.dk/Redirect/modernluxury.com/ml-web/mbk-interview1.html

The Fashion Magazine and its Place in Society

Woman’s magazines have taken on a life of their own. No longer are magazines something to read in quiet, for they are now proudly centrally placed for all to see. The fashion magazine adorns the home of young woman, and the topics included are eagerly discussed amongst friends. Magazines are becoming the leisure domain for today’s young as a means of exploring new ideas and attitudes. However, is a fashion magazine worthy of this lofty position in today’s society and its classification as a valuable tool in disseminating knowledge? This essay will outline the arguments regarding the validity in society, of fashion and female magazines such as Marie Claire, Vogue and Woman’s Weekly.

Positive aspects of magazines

Magazines are a woman’s best friend, with no interruptions; a reader can choose topics to suit individual interests and provide answers to life’s demanding questions. Such an attitude reflects women’s thoughts towards this form of mass media, thus promoting one of the most popular means of leisure activities. In today’s society, woman would much prefer to indulge in their favorite magazine and read up on the latest gossip, the best way to diet and the hot shopping spots than read a newspaper or a novel. It can be argued that fashion magazines have become one of the fastest growing forms of mass media.

It can be seen that fashion magazines have become integral in today’s dissemination of information. This is demonstrated by the growth of magazine publications. The various magazine types such as cultural, fitness, gardening, leisure health, fashion and life style can be observed in the numerous rows displayed in news agency however there are more than two rows devoted to woman’s fashion magazines. The diversity of one genre thus has the potential to create an imbalanced view on reality.

The potential to create imbalance is reflected in woman who feel their favorite magazine has the ability to reach them in emotional, social and business areas of life, thus creating the belief magazines are helping them to have a better view on life. This belief that magazines can reach inwards and be apart of a person’s decision making may have more sinister effects. Thus it needs to be explored how much power the mass media extends into society and if this power creates negativity.

Negative impacts of magazines

Magazines as acknowledged are a popular form of communication and by being popular, the issue to be considered revolves around the question does this form of dissemination negatively impacts upon its readers. It can be argued that many women by accepting their weekly magazine is serving them with all the answers to life’s problems, they are in fact ignoring various aspects of life thus creating an in balance in decision making.

It must be stated that fashion magazines do present images to the reader such subjects that they associate with: such as international clothing, latest make up methods, issues that absorb their social and sexual life. However, what must be analyzed is the incongruity in the images and words sent out in magazines such as Cleo, Vogue and New Woman.

The negative imbalance inflicted upon magazine readers has arises from three generic configurations. Firstly, the substantial array of advertising which can take up to 60% of each edition has the potential to negatively affect the reader’s view of the real world. Secondly, the fashion magazine industry has created the belief that the images is the life all woman should have, and if you do not have this life style then you are not a suitable member of the female gender. Finally, the propensity of ultra thin models throughout all magazines publications has created a large percent of younger woman readers to develop negative feelings towards their own body size.

In conclusion, the fashion magazine has a role in today’s society. Further more it would seem strange to consider the removal of this form of communication thus it is unlikely to occur. However what is needed is a re think to create balance in future publications to ensure tomorrow’s readers have a more realistic perception of the society in which they live thus removing the negative impacts which are currently in place. Further more the fashion magazine of tomorrow must avoid continuing with a “fairy Tale” world and become a representation of reality.

A Love/Hate Relationship

A magazine virtually cannot survive without advertising as it makes up 54 percent of the total revenue of an average magazine. But there are certain guidelines set out by the American Society of Magazine Editors (ASME) that advertisers are required to follow. However, the one that deters me from flipping through a magazine the most are advertising inserts. These are produced and created by the advertisers and comes bounded into the magazine. Inserts differ to normal advertising because it is often printed on different paper to the rest of the magazine. Advertisers are increasingly using this form of advertising to capture the attention of readers particularly because both Generation X and Y are so invovled in the media world.

The most common type of advertising inserts is perfume or cologne ads that have scented samples. These forms of ads are highly successful because they enable the advertiser and the reader to establish an interactive relationship. It forces the reader to feel the need to sniff the sample particularly because the smell jumps out at you when you open up the magazine. I personally think it is a clever way to advertise a product. It differs itself from other advertising making the ad more successful in achieving its goal to appeal to readers.

However when I am reading through a magazine such as November’s issue of Vanity Fair all I want to read are the articles. But each time I flip a page, I end up flipping a whole section of them all because of these inserts. As previously mentioned, it is made from different paper, usually a lot thicker than the rest of the pages of the magazine and so they act almost like page dividers. In some ways it is convenient to have them there because they act as book marks for the magazine but generally they are just irritating.

Similarly, I share the same love/hate relationship with outserts. It is another method of advertising. This is preprinted advertising which can also include editorial material. The most common one are subscription cards. Those are the ones that are constantly slipping out in between the pages of the magazine each time you flip through them. This form of advertising is definitely eye capturing as each time it falls out it also screams ‘look at me’ engaging the reader to at least pick it up and look at the advertisement.

At times, advertising can be the most irritating thing of a magazine but in most cases, they are clever and innovative inventions that does exactly what advertisers want them to do – capture the reader’s attention.

The Magazine Death Toll

The Grim Reaper has reaped again taking the life of Conde Nast's 106-year-old title Home & Garden.

In a article by Folio Magazine titled "Conde Nast Shutters Shelter Title," CEO Chuck Townsend partly blames Joe Lagani--H&G’s publisher who relocated to Glam Media last month—to be the lighting storm that finally contributed to the sinking of the ship.

"With the unexpected departure of the publisher of the magazine, we decided to take a serious look and re-evaluate the title," Townsend said “our investment in H&G throughout the years has been substantial and we no longer believe it is a viable business investment for the company.”

But the magazine has seen a carousel of publishers come and go since it re-launched in 1996—after going hiatus for three years when Conde Nast acquired Architectural Digest from Knapp Communications. Perhaps the lack of command from a stable publisher was a determining factor in its decay. Not to mention a shrinking housing market and hipper competitors entering the fray.

According to the Publishers Information Bureau H&G was up 9.5 percent in advertising revenue to $68.2 million, but down in ad pages by 1.4 percent. In a recent article titled “Closing up house,” by Women’s World Daily, H&G’s average monthly circulation during the first half of the year was 976,442, an increase of nearly seven percent over 2006; yet single copy sales have been less persistent with a steady annual decrease since 2003 according to the Audit Bureau of Circulations.

The Reaper, a snarky-magazine-death-determining-nostradamus-lauched the site Magazine Death Pool nearly two years ago. He, who won’t reveal his real name, was not the least bit surprised that H&G went under. An interview with Media Life Magazine revealed his forecasts for the death of a shelter magazine based on the declining housing costs and eventual advertising sales.

Thus far, he has rightfully predicted the deaths of Jane, Stuff and Premiere with his expertise derived from leads in the industry including subscription agents who’ve had their magazine subscriptions revoked by clients.

He explains in the interview that magazines fold for a number of reasons including; corporate abandonment, constantly changing editorial directions in an attempt to get anything going, key executives not being replaced, betting too heavily on newsstand sales, abnormally high turnover, or putting out a magazine that readers neither need nor want.

Next on the Reapers death list are parenting magazines, a consequence of the sprouting tech savvy young mothers who have replaced older mothers that were used to print. There’s no information that can’t be found with websites and blogs for a mother’s reference. This is definitely an affliction of many print based readers who fear for the shaky threshold of the Magazine Industry.

Old-guard designer Mario Guatta said about H&G in an article published by The Wahington Post title “House & Garden Bites the Dust Once More” “It’s a sad thing because another voice is gone. But the magazine was changing to often. I think sometimes they were trying to be too avant-garde, and it turns a lot of people off.”

Also in the article, Charlotte Moss, a designer and author who archives H&G’s on her bookshelf dating back to the 1920's says she is afraid that technology is going to obliterate print.

"The loss of a magazine is sad because, in this high-tech world. I fear that printed words are evaporating," she said. "This magazine had a shelf life. It was always open-minded and refreshing. Where are all these homes and gardens going to go now?

But ultimately, doesn’t the birth and death of a new publication lead to a better, more remarkable product? Businesses are always opening and closing around us, so what makes a magazine any different besides the obvious. Some would say that the competition keeps other on their toes. Perhaps future generations can learn from the mistakes that H&G made and eventually stabalize the industry all together. One can only hope…

How Niche Can They Get?

In a generation that is obsessed with getting the most out of their time, money and investments, magazines have been cutting out the fat. This is also known as “niche narrowcasting”. In doing a little research I found dozens of super niche publications. These are magazines which are tightly targeted to very specific readers. It made me wonder how niche is too niche? How narrowly can a publication market to a specific demographic and still be a financial success? In 2005 alone nearly 400 niche magazines were started.

One of the titles I found was called Seed, and its mission is displaying “science as pop culture, and getting hip young readers talking about science”. Even 24 Hour Fitness has their own magazine. A publication called Modern Dog made its debut in 2002 and features celebrities and their dogs on the cover. This magazine is meant to be “The lifestyle magazine for urban dogs and their companions”. Crappie World is a magazine for sport fisherman who only fish for crappie (a type of fish).

Convenience Store is a magazine that reports on news for convenience stores. Some other titles include: Potato Grower, Church Solutions, Garage, Lady-Like, American Cemetery, New Beauty, Sunflower, and Sushi & Tofu. The list could go on. There are magazines for sheep, tea, goats, prison life, knives, bear hunting, candy, spicy food, beverages, concrete, beads, ferrets, and of course everyone’s favorite…American Window Cleaner.

The continued success of these magazines proves that if there is a market for it or a reader with a hobby, it has money-making potential and definite potential for success. As long as there is a need or desire, there is potential for profit and maybe that is all that is necessary in a society where people don't want to read about something that does not interest or concern them. A serious crappie fisherman may not want to pick up a magazine because it has just one article about fishing; instead he can subscribe to Crappie World and read about everything crappie. Consumers want what they want and nothing more. Don't waste their time, they want it now.

Advertising throughout magazines

Is there to much advertising in magazines? Are magazines becoming just another tool to persuade society into materialistic needs, and are magazines now just a commercial tool for advertising companies? This question is often raised by magazines readers, however on the other hand can magazines survive without companies paying to place advertisements in the magazine.

Magazines are one of the important avenues advertisers seek to promote their goods. Advertisers are willing to pay for the attractive pages of a magazine as well as fight for prominence with in a magazine, for advertising companies recognize the power of being seen in particular magazine and on particular pages. Recognition of the wide audiences made available through magazine readership has ensured advertising companies use this tool of communication to advertise everything from woman’s razors, and the latest Gucci clothing to sports cars and holidays. However, it can be argued that Advertisements are beginning to take over the magazines content. For example, the Vogue October 2007 edition displayed purely advertisements for the first 40 pages. After these 40 pages the reader arrived at the first content page, and in the following pages every second page would display an advertisement. Throughout the whole magazine, even if there was a page that wasn’t an intended advertisement, the page would contain the brand of the clothing the model was wearing, where to get it, how much it costs and a phone number to call and order.

Thus it can be seen why many readers of magazines are frustrated and feeling that advertising is taking over magazines. Within magazines selected advertising companies, due to the power of money, have a large influence over editorial content and lay out of magazines thus, poising the question, how much of our favorite magazines is stylized with the sole intention of persuading us into a purchase a product? Clearly it can be argued that an advertising frenzy is occurring within magazines making this popular media tool a commercialized area to further sell and influence its readers.

On the other hand, it is a fact that advertising is a necessary component of a magazine production and without this the magazine will most likely fail. Within the production of a magazine there are three areas necessary to keep the magazine alive: editorial, advertising and circulation. Editorial must keep the reader interested and provide what the reader wants, circulation shows to the advertisers that the magazine has the audience they desire, and advertising provides the funds to keep the magazine alive. So, if all three work together there should not be the perception that is currently around, that magazines are becoming one of the biggest advertising tools in today’s mass media.

Event: San Francisco Magazine's Fallfest

On October 6, San Francisco Magazine held its annual Fallfest event in the Justin Herman Plaza near the Embarcadero in San Francisco. Bringing together over eighty Bay Area eateries and wineries in the dazzling afternoon sun, the magazine set to establish Fallfest as the food and wine event of the season celebrating the local bounty of the Bay.

Between the Asian-influenced raw delicacies, fried chicken and cornbread, savory liver mousse and delectable confectionary bites; the price of an $80 general admission ticket bought one the opportunity to feast and drink to their hearts’ content. With informative chef demonstrations and dozens of tempting tents set up along the plaza, guests got to mingle while tasting the creations from local favorites such as Postrio, Quince and Aqua as well as sampling a slew of local wines.

Of course for those desiring an up-graded culinary treat, VIP tickets were available for $150 and included an additional wine flight tasting with custom food pairings and a gift bag.




San Francisco Magazine, joined with the Examiner and KRON 4, engages in such events each year to promote their position as the leading exclusive, city-read for the discerning San Franciscan reader. Fallfest, along with the magazine’s summertime Best of the Bay event, proves a great marketing tool not only for reaching out to readers, but also to gain new advertisers as well. Some of the magazine’s top advertisers helped sponsor Fallfest such as The Ritz Carlton Club, Bauer’s transportation, Amstel Light and Fiji water.

Currently San Francisco Magazine markets itself to the established, affluent decision-makers of San Francisco and by pairing with local fine-dining establishments - the magazine has established a brand for itself much like the old-fashioned Good Housekeeping Seal of Approval. Each year the magazine puts out its picks for the Best of the Bay, creating a trusted relationship of taste and choosiness amongst their readers.

By tapping into the diverse food and wine culture of the city, Fallfest is yet another way for San Francisco Magazine to make its presence known among the trendy “who’s who” in the Bay Area. Additionally, the magazine holds its Fallfest to benefit the charity Meals on Wheels – aiding their well-off readership that wishes to donate to much-needed local causes.

The leading competitor of San Francisco Magazine is 7x7 magazine which also distinguishes itself as the Bay Area read for the affluent and hip. In addition, each year 7x7 declares its pick for the best of the Bay Area, yet does not hold an annual fall harvest event like San Francisco Magazine.



According to Erica Minix, assistant to the President of San Francisco Magazine, the magazine also holds smaller promotional events with the same purpose of the Fallfest on an almost weekly basis.

Making its presence known at these exclusive local parties, the magazine is constantly promoting itself and handing out free copies to potential subscribers. At Fallfest, the magazine did the same and by hosting the event, was able to distinguish itself as the leader in what’s new, fresh and tasty in the Bay Area culinary scene.