Why Major Magazine Companies Seem Unable to Monetize Their Brands Digitally - Steve Blacker

1 While most major magazine companies have invested in their digital operations their investment commitment and comfort level pales in the comparison to earlier major magazine launches such as Vanity Fair People Lucky O The Oprah Magazine etc2 Because the lion39s share 90 or more of any major magazine39s profits and revenues come from the old print business model even though the future is in digital these companies find it difficult to invest in something Digital that may take years to become profitable and reach its full potential Major publishing companies also lack the engineers and highly innovative Digital creators that do not thrive or inhabit a staid and traditional business entity3 Couple that with the current management of most major magazine companies being print veterans it is no surprise that their comfort level is more with print than digital Eventually someone from a Google Microsoft etc will be put in charge of a major magazine company This will be good for print as someone who knows how to successfully create and market a brand digitally will be extremely comfortable with the most powerful media brands that exist ie Vogue Sports Illustrated Elle Good Housekeeping Cosmo Better Homes ampamp Gardens etc to mention just a few4 It seems hard to believe that a brand like Cosmo has not become a major Online dating site This year Online dating sites will make over one billion dollars Or that Vanity Fair or PEOPLE had not created something akin to the TMZ or Perez Hilton Web site Is this a result of a lack of a financial commitment to Digital or having the right creativeeditorial talent Most likely a combination of the two5 It should seem obvious that one needs just one editorial staff to produce a print and digital version of a media brand Same for ad sales And shouldn39t each print article list a web connection for that brand And shouldn39t there be a similar push pull going on with the Web site Apps etc to get people interested in subscribing to the brand39s print version Forbes seems to have created a unique editorial business model linking print and Digital together under Lewis D39Vorkin leadership How successful it is only time will tell Ironically the important corporate position of Editorial Director is most often held by a proven print veteran Often times these people lack the same skill level with Digital that they have with print6 Does it make business sense for major publishers to have such large sales staffs and support groups to sell pages for their individual titles when the lions share over 70 of all the pages sold are part of corporate packages By realistically trimming individual titles print sales staffs the money could be found to properly invest in Digital7 quotDigital Skunk Worksquot need to be established because the young Digital inventors and creators need to be housed within a noncorporate structure The cost to invest in a Digital start up is far less than attempting to launch a new magazine Matter of fact a quotSkunk Worksquot could generate numerous projects on a yearly basis for less than two million dollars One approach could be partnerships whereby the major publisher helps fund a project with a very small salary for the creatorsinventors that allows them to own a small percentage of the venture if it succeeds8 If Publishers want to garner a reasonable market share of Digital ad dollars etc they need to make Digital much more of a priority Most are acquiring existing Web sites etc rather than launching new ones as brand extensions Might not have WebMd CafeMom LinkedIn even Facebook have been created by a magazine company as part of a brand extension9 If Time Inc or Conde Nast were ever for sale I believe either Google or Microsoft would buy them because of the strength of their brands and the untapped Digital potential they offer For major publishers to reap the Digital rewards their brands offer they need to not only invest more but attract the necessary talent and give them access and control digitally of their print brands A traditional print editor is not going to be able to come up with the necessary ideas to create Digital brand extensions Worse they can under existing structures block new thinking in regard to launching a new platform Editorial control of the print brand needs to be realigned and reorganizedSteve39s new book You Can39t Fall Off The Floor The Insiders39 Guide to ReInventing Yourself and Your Career chronicles his 50 year career working for over 25 different companies with 189 lessons learned and insider tips from Gayle King Cathie Black Chuck Townsend and 28 others Blacker is still going strong today as a partner in Frankfurt ampamp Blacker Solutions LLC His web site is blackerreinventionscom and email address is blackersolutionsaolcomRead all Steveamp8217s MediaBizBloggers commentaries at Media ReinventionsCheck us out on Facebook at MediaBizBloggerscomFollow our Twitter updates MediaBizBloggerMediaBizBloggers is an openthought leadership 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Why Major Magazine Companies Seem Unable to Monetize Their Brands Digitally - Steve Blacker

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