®
Magazines SCOTT GALLOWAY NYU Stern
J U LY 2 6 , 2 0 11 A Think Tank for DIGITAL INNOVATION
© L2 2011 L2ThinkTank.com
Digital IQ Index ®:
Magazines
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IN T R O D U C T I O N
Opaque There is no shortage of candlepower (i.e., smarts) or innovation in the magazine business. However, even with total advertising revenue down more than 20 percent from its pre-financial crisis peak, no company or individual has been able to paint a cogent picture of what the industry’s next iteration will look, smell, or feel like.1 While analysts and consultants bark about the urgency to
through the ether surpassed free content, and several pay walls
“embrace digital,” the web efforts of many leading magazines
appear to be gaining traction.4 As experimentation with digital
wilt under even the most forgiving analytics. In sum, the online
edition format, pricing, and subscription models continues,
revenue model for magazines remains opaque.
analysts at PwC express confidence that annual digital circu-
Broken Technology did not get the memo regarding traditional me-
lation revenues associated with magazines could grow from about $4 million last year to $611 million by 2015.5
dia’s business model. Re-targeting, coupled with a torrent of
Digital IQ = Shareholder Value
supply, resulted in online CPMs collapsing 30 percent in the
This study attempts to quantify and rank the digital competence
12-month period ending March 2011.2 The latest beacon, the
of 87 magazine brands. A close look at the relationship between
iPad, has not lived up to its hype, and as of December 2010, all
Digital IQ and performance reveals a link between a title’s digital
magazines reporting data experienced declining digital edition
competence and its advertising revenue per page. Our aim is to
sales. The Huffington Post, arguably the most successful In-
provide a robust tool to diagnose digital strengths and weak-
ternet media property based on a traditional advertising model,
nesses, and thereby help managers achieve greater return on
posted 2010 revenues of $30 million. In contrast, Google will
incremental investment in digital. We hope you will reach out
register over $30 million in revenues in the next eight hours.
with comments that improve our methodology, investigation, and
3
Hope There is nothing wrong with the magazine industry that can’t be
findings. You can email me at scott@stern.nyu.edu. Sincerely,
fixed with what’s right with the industry. Iconic brands, differentiated content, deep talent, and robust cash flows to fund experimentation and acquisition should illuminate several paths to a brave new model. In 2011, the amount of paid content traveling © L2 2011 L2ThinkTank.com
Scott Galloway Founder, L2 Clinical Professor of Marketing, NYU Stern
1. Publishers Information Bureau (PIB), Full-Year Revenue & Pages Data, Updated January 10, 2011. 2. Efficient Frontier, Global Digital Marketing Performance Report, Q1 2011. 3. “Memo Pad: iPad Magazine Sales Drop,” John Koblin, WWD Media, December 29, 2010. 4. “Murdoch’s Leap Finds Converts in Cannes As Paywall Use Grows,” Matthew Campbell and Amy Thomson, Bloomberg, June 24, 2011. 5. Jeff Bercovici, “Digital Subscriptions Will Lift Magazines But Not Newspapers,” Forbes: Mixed Media, June 14, 2011.
2
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IN T R O D U C T I O N M A G A Z IN E d i g i tal i q S C O R E v s . 2 0 1 0 advert i s i n g R E V E N U E P E R A D V E R T I S IN G PA G E
150
130
Digital IQ
110
90
70
50
30 0
$100
$200
$300
$400
$500
2010 Advertising Revenue per Advertising Page (in thousands) © L2 2011 L2ThinkTank.com
3
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A B O U T T H E R A NKIN G S
M E T H O D O LO G Y
Site - 25%: C AT E G O R I E S
140+ Genius Digital competence is a point of differentiation for these brands. Site content is searchable, shareable, and mobile-optimized. Social media efforts complement wider digital strategy.
110-139 Gifted Brands are experimenting and innovating across site, mobile, and social platforms. Digital presence is consistent with print product.
90-109 Average Digital presence is functional yet predictable. Social media efforts are siloed across platforms.
70-89 Challenged Inconsistent adoption of mobile and social media platforms. Site lacks inspiration.
<70 Feeble Investment does not match opportunity.
Effectiveness of brand site. Functionality & Content - 75%: • Technology: Load Time, Integration of Analytics & Optimization Platforms, Video Presence • Navigation & Search: User Interface, Site Search • Home Page: Social Media Integration, RSS Customization, Blog Presence & Implementation • User Account: Signup Process, Interoperability, Account Features • Content: Shareability of Articles, Photos, & Videos • Customer Service: Subscription Promotion & Support • Interactivity & Innovation: Unique Tools, Web Applications, Microsites
BRAND TRANSLATION - 25%: • Aesthetics • Messaging
Digital Marketing - 25%: Marketing efforts, off-site brand presence, and visibility on search engines. • Search: Traffic, SEM, SEO, Web Authority • Email: Frequency, Content, Social Media Integration, Promotion • Innovation: Recent Brand Initiatives, Presence on Tumblr • Blog Presence: Mentions, Sentiment
Social Media - 25%: Brand presence, community size, content, and influence on major social media platforms. • Facebook: Likes, Growth, Post Frequency, Applications, Responsiveness, Content • Twitter: Followers, Growth, Tweet Frequency, Online Voice • YouTube: Views, Number of Uploads, Subscriber Growth, Content
Mobile - 25%: Compatibility and marketing on smartphones and other mobile devices. • Mobile Site: Compatibility, Functionality, Ability to Transact • iOS: Availability, Popularity, Functionality, iPad Differentiation • Other Platforms: Availability, Popularity, Functionality • Innovation: SMS, Geolocal, Recent Brand Initiatives
© L2 2011 L2ThinkTank.com
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
1
TIME
Time Inc.
News & Politics
140 Genius
Strong presence across nearly every platform; inspiring
2
PEOPLE
Time Inc.
Entertainment & TV
136 Gifted
Accessible on nearly any screen; launched voting last fall for 2010 Sexiest Man Alive on Facebook
3
SELF
Condé Nast
Health & Fitness
134 Gifted
Seamless integration of print and Facebook content
4
MEN’S HEALTH
Rodale
Health & Fitness
131 Gifted
Cross-platform Workouts are intense
4
SPORTS ILLUSTRATED
Time Inc.
Sports & Recreation
131 Gifted
A breadth of web content, solid mobile offering, and halo effect from CNN’s Sports tab
6
NEW YORK Magazine
New York Media Holdings
Lifestyle
129 Gifted
Culture Vulture and Shop-A-Matic sub-brands are standouts
7
GQ
Condé Nast
Men’s
128 Gifted
Sharp customer service and irreverent Twitter handle
8
GLAMOUR
Condé Nast
Fashion & Style
127 Gifted
Impressive social media properties and blogs make fashion accessible
9
ENTERTAINMENT WEEKLY
Time Inc.
Entertainment & TV
126 Gifted
YouTube promotion to launch fall TV lineup and partnership with check-in upstart GetGlue entertain
10
COSMOPOLITAN
Hearst
Women’s
125 Gifted
Digital marketing innovator; turned users into stars in first global digital campaign live in Times Square
11
THE ECONOMIST
The Economist Group
News & Politics
124 Gifted
Smashing infographics and adroit YouTube videos
12
NATIONAL GEOGRAPHIC
National Geographic Society
Science & Nature
123 Gifted
YouTube channel boasts nearly 600 million upload views
12
NEW YORKER
Condé Nast
News & Politics
123 Gifted
Impressive issue archive and narrated slide shows
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
5
Digital IQ Index ®:
Magazines
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
12
RUNNER’S WORLD
Rodale
Health & Fitness
123 Gifted
Social media marathoner
15
O, THE OPRAH MAGAZINE
Hearst
Women’s
121 Gifted
74 percent Facebook fan growth during TV farewell demonstrates power of integrated platforms
16
SEVENTEEN
Hearst
Women’s
120 Gifted
Social (media) butterfly; Mstylelab showcases digital efforts with leading retailers
16
WIRED
Condé Nast
Science & Nature
120 Gifted
iPad pioneer underwhelms with otherwise analog showing
18
ESQUIRE
Hearst
Men’s
119 Gifted
Debonair mobile site and clever viral video divert attention from a disheveled Facebook page
19
TEEN VOGUE
Condé Nast
Women’s
118 Gifted
Stellar Twitter handle and Fashion Click blog
20
ELLE
Hachette Filipacchi
Fashion & Style
117 Gifted
Impressive YouTube and Twitter properties
20
FORBES
Forbes
Business & Finance
117 Gifted
A rich site
20
INSTYLE
Time Inc.
Fashion & Style
117 Gifted
A sleek Facebook page and StyleFind e-commerce
23
BETTER HOMES AND GARDENS
Meredith
Home & Gardening
115 Gifted
Mobile site and how-to tools bloom
23
FOOD & WINE
American Express Publishing
Cooking, Food, & Beverage
115 Gifted
Smooth digital presence overpowers an undercooked mobile site
25
GOLF DIGEST
Condé Nast
Sports & Recreation
114 Gifted
Scores with Fans’ Choice 2011, an online bracket where Facebook fans select America’s greatest public golf course
26
FITNESS
Meredith
Health & Fitness
113 Gifted
Strong mobile site and apps
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
6
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Magazines
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
26
PARENTS
Meredith
Family
113 Gifted
Facebook fans thicker than water
26
VOGUE
Condé Nast
Fashion & Style
113 Gifted
At times geek can be chic, and at others it’s passé to be gifted
29
MARIE CLAIRE
Hearst
Fashion & Style
112 Gifted
iPad e-commerce standout
30
FOOD NETWORK MAGAZINE
Hearst
Cooking, Food, & Beverage
111 Gifted
Foursquare and Facebook Places check-in campaigns offer unique flavor
30
LUCKY
Condé Nast
Fashion & Style
111 Gifted
Faces of 5F Facebook/Tumblr collaboration with Bergdorf Goodman shows social prowess
30
PLAYBOY
Playboy Enterprises
Men’s
111 Gifted
Nearly six million Facebook fans
33
ALLURE
Condé Nast
Fashion & Style
110 Gifted
Tempting site and QR-code giveaways, but bookmarking can’t possibly be Reader’s Choice
34
REAL SIMPLE
Time Inc.
Lifestyle
109 Average
Simply average
34
ROLLING STONE
Wenner Media
Entertainment & TV
109 Average
Site has good cadence, but other digital properties lack rhythm; turned over cover choice for August 18, 2011 issue to site users
34
US WEEKLY
Wenner Media
Entertainment & TV
109 Average
Robust mobile site
37
MOTOR TREND
Source Interlink Media
Auto & Cycles
108 Average
Apps and mobile site are head-turners, but site is middle of the road
37
NEWSWEEK
The Newsweek Daily Beast Company
News & Politics
108 Average
Daily Beast integration is a disappointment
37
WOMEN’S HEALTH
Rodale
Health & Fitness
108 Average
Apps and Twitter look good, but YouTube absence damages overall physique
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
7
Digital IQ Index ®:
Magazines
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
40
FAST COMPANY
Mansueto Ventures
Business & Finance
106 Average
High octane iPad app, sluggish Facebook page
41
BLOOMBERG BUSINESSWEEK
Bloomberg
Business & Finance
105 Average
iPad app is a victory; Business Exchange attempts micro-social effort
41
VANITY FAIR
Condé Nast
Lifestyle
105 Average
VF Agenda microsite attempts to add spark to otherwise stale site
43
CAR AND DRIVER
Hachette Filipacchi
Auto & Cycles
104 Average
Mobile site has more horsepower than full-sized web presence
43
MARTHA STEWART LIVING
Martha Stewart Living Omnimedia
Home & Gardening
104 Average
Rich site and multiple apps—but brand can’t replicate namesake’s success on Twitter
45
ESSENCE
Time Inc.
Women’s
99 Average
Recent site redesign works
45
POPULAR SCIENCE
Bonnier
Science & Nature
99 Average
iPad early adopter has made 139 years of the publication available via Google Books
47
BON APPÉTIT
Condé Nast
Cooking, Food, & Beverage
98 Average
Android/iOS ebooks and Foursquare presence satisfy, but leaves us craving mobile apps for the main course
48
BRIDES
Condé Nast
Women’s
97 Average
Best-in-class site and efforts on other platforms need to tie the knot
48
FORTUNE
Time Inc.
Business & Finance
97 Average
Fortune trumps sister brand Money, but both are hindered by slow consolidation under CNNMoney umbrella
48
MAXIM
Alpha Media Group
Men’s
97 Average
Social media that proves sexier than aging site
51
SHAPE
American Media
Health & Fitness
95 Average
Vigorous social media and innovative mobile apps, but a weak site
52
COUNTRY LIVING
Hearst
Home & Gardening
93 Average
Mentions of ETSY designers aim to be hip, but brand can’t pull away from Hearst boilerplate
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
8
Digital IQ Index ®:
Magazines
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
52
ENTREPRENEUR
Entrepreneur Media Inc.
Business & Finance
93 Average
Needs to take more risks
52
GOLF MAGAZINE
Time Inc.
Sports & Recreation
93 Average
Will Ferrell promo helps users select their Celebrity Fab Foursome on Facebook
52
GOOD HOUSEKEEPING
Hearst
Home & Gardening
93 Average
@Home app provides DIY resource to complement print content
52
POPULAR MECHANICS
Hearst
Science & Nature
93 Average
In-app subscription functionality is a start
57
REDBOOK
Hearst
Women’s
92 Average
Impressive mobile site, but main site is still underwhelming
57
W
Condé Nast
Fashion & Style
92 Average
Why no apps?
59
WOMAN’S DAY
Hachette Filipacchi
Women’s
91 Average
Live well every day… by engaging more with your Twitter followers
60
HOUSE BEAUTIFUL
Hearst
Home & Gardening
89 Challenged
House Beautiful PaintBrush begins to showcase digital DIY
61
COOKING LIGHT
Time Inc.
Cooking, Food, & Beverage
88 Challenged
Hungry for more mobile investment
61
HARPER’S BAZAAR
Hearst
Fashion & Style
88 Challenged
Unremarkable
61
PARENTING
Bonnier
Family
88 Challenged
Functional website is the glue holding together otherwise dysfunctional digital presence
64
READER’S DIGEST
Reader’s Digest Association
Lifestyle
87 Challenged
100 Towns in 100 Days YouTube tour proved hard to sustain; acquisition rumors persist
64
ROAD & TRACK
Hachette Filipacchi
Auto & Cycles
87 Challenged
Good-looking site, but not much under the hood
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
9
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Magazines
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
66
CONDÉ NAST TRAVELER
Condé Nast
Lifestyle
85 Challenged
Integration with Concierge.com is confusing and dilutive
66
PREVENTION
Rodale
Health & Fitness
85 Challenged
Sclerotic site navigation
68
FAMILY CIRCLE
Meredith
Family
84 Challenged
Momster social network partnership should just move to Facebook
69
FIELD & STREAM
Bonnier
Sports & Recreation
83 Challenged
There’s plenty of game left on other platforms
69
MORE
Meredith
Women's
83 Challenged
More mobile please
71
MONEY
Time Inc.
Business & Finance
82 Challenged
In recession
71
SOUTHERN LIVING
Time Inc.
Home & Gardening
82 Challenged
They don’t use mobile phones in the South?
73
ARCHITECTURAL DIGEST
Condé Nast
Home & Gardening
81 Challenged
Impressive aesthetics should reach across multiple platforms
73
EVERY DAY WITH RACHAEL RAY
Reader’s Digest Association
Cooking, Food, & Beverage
81 Challenged
Mobile campaigns for a magazine with no mobile site?
73
TRAVEL+LEISURE
American Express Publishing
Lifestyle
81 Challenged
Digital has never been abroad
76
SMITHSONIAN
Smithsonian Institution
Science & Nature
79 Challenged
Museum-quality mobile site can’t make up for underwhelming social media
77
ESPN THE MAGAZINE
Walt Disney/Hearst
Sports & Recreation
78 Challenged
No dedicated URL (anymore), that’s gotta hurt…
77
HEALTH
Time Inc.
Health & Fitness
78 Challenged
Infirmed
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
10
Digital IQ Index ®:
Magazines
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D I G I T A L IQ R A NKIN G
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
Rank Brand
Parent
Category
79
SMARTMONEY
Dow Jones & Company Inc.
Business & Finance
77 Challenged
Answer Engine registers, but no mobile presence
80
LADIES’ HOME JOURNAL
Meredith
Women’s
75 Challenged
Dear Journal: Create a mobile site and/or apps
81
TRADITIONAL HOME
Meredith
Home & Gardening
69 Feeble
Uploaded ad images are not traditional, just outdated
82
MUSCLES & FITNESS
American Media
Health & Fitness
64 Feeble
Ninety-pound weakling
83
ELLE DECOR
Hachette Filipacchi
Home & Gardening
59 Feeble
Designer Registry mentions drive Facebook wall conversation away from core readership
84
STAR
American Media
Entertainment & TV
55 Feeble
The last to know
85
MEN’S JOURNAL
Wenner Media
Men’s
52 Feeble
No daily blog and spotty incorporation of video content
86
TOWN & COUNTRY
Hearst
Lifestyle
43 Feeble
Is anyone home?
87
IN TOUCH WEEKLY
Bauer Publishing
Entertainment & TV
32 Feeble
A lot of opportunity to improve
© L2 2011 L2ThinkTank.com
Digital IQ Class
Home & Gardening
Description
11
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
D I G I TA L IQ D I S P E R S I O N % of Brands per Digital IQ Class
Many Are Gifted, But Only One Is ... GENIUS
People
Wired
Self
Esquire
Men’s Health
Teen Vogue
surveyed were categorized as Challenged or Feeble, high-
Sports Illustrated
lighting adoption of digital best practices across the sample.
New York Magazine
Forbes
The distribution of brands per Digital IQ class is heavily skewed towards the Gifted classification. Less than one-third of brands
However, only one Genius brand emerged from this study:
TIME Magazine. Although most brands achieve adequate digital competence, few invest in additional tools and features that could distinguish them from a crowd of above-average performers. Magazines that appear poised to enter the Genius class share two features:
1.
Balanced, sustained investment across social media platforms.
2.
Recognition that a successful mobile strategy extends beyond the iOS platform.
GQ Glamour Entertainment Weekly Cosmopolitan The Economist
1%
Digital IQ
>140
InStyle Better Homes and Gardens Food & Wine Golf Digest Fitness Parents
37% Digital IQ
110-139
Vogue Marie Claire
New Yorker
Food Network Magazine
AVERAGE
Lucky
O, The Oprah Magazine
Playboy
Seventeen
Allure
30%
Digital IQ
90-109
Real Simple
Bon Appétit
Rolling Stone
Brides
Us Weekly
Fortune
Motor Trend
Maxim
Newsweek
Shape
Women’s Health
Country Living
Fast Company
Entrepreneur
Bloomberg Businessweek
Golf Magazine
Vanity Fair Car and Driver House Beautiful
Southern Living
Cooking Light
Architectural Digest
Harper’s Bazaar Parenting Reader’s Digest Road & Track Condé Nast Traveler Prevention Family Circle Field & Stream More Money
Martha Stewart Living
CHALLENGED
Every Day with Rachel Ray
Good Housekeeping Popular Mechanics Redbook
Essence
W
Popular Science
Woman’s Day
Traditional Home
Men’s Journal
Travel+Leisure Smithsonian ESPN The Magazine
Digital IQ
70-89
24%
Health Smart Money Ladies’ Home Journal
FEEBLE 8%
© L2 2011 L2ThinkTank.com
TIME
GIFTED
ELLE
National Geographic Runner’s World
GENIUS
Digital IQ
<70
Muscles & Fitness ELLE DECOR
Town & Country In Touch Weekly
Star
12
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K E Y F IN D IN G S
A TIME -ly Victory Lightbox: Despite its demonstrable success, TIME is not afraid to innovate— it recently launched a best-in-class photo blog in March.
Diverse Investment Across Mobile Platforms: TIME is one of a handful of publications that develops across nearly every platform, including Android, iPad, iPhone, BlackBerry, Nook, and Kindle. Well-Managed Digital Footprint: One-stop access to TIME’s expanded digital footprint.
© L2 2011 L2ThinkTank.com
TIME Mobile App: One of the rare mobile offerings that brings Facebook and Twitter buttons into the app. Proves distinct from both mobilize-optimized site and tablet offerings.
13
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K E Y F IN D IN G S
A TIME -ly Victory (continued)
Allie Townsend: TIME gives personality to its @TIME Twitter account by handing over the reins to the brand’s resident geek.
Facebook Page: Dedicated Twitter tab, integrated video library, and direct subscription signup—all implemented without redirects.
Never Pay Twice for the Same Content: Adopted “All Access” subscription plan on July 19, granting current print subscribers unrestricted use of the title’s content across ALL its digital versions. © L2 2011 L2ThinkTank.com
The Page iPad App: Instead of introducing feature creep into the well conceived iPad edition of the magazine, TIME has begun to create complementary tablet apps that feature separate content driven by its commentators and analysts.
14
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K E Y F IN D IN G S Size Matters In aggregate, brands that belong to a larger parent company perform better than those associated with a smaller publication house or independent venture. Companies that manage ten or more brands register an average Digital IQ 11 percent higher than their smaller counterparts. The one exception, Rodale, which garnered the highest organizational IQ at 112, has tapped into a Health & Fitness category-specific formula that translates across its four titles. Condé Nast nabbed the top spot of the large conglomerates, registering an average Digital IQ of 110 across the 16 magazines scored. The higher Digital IQ scores associated with larger companies suggest these organizations have leveraged economies of scale—employing common site templates and mobile app architecture across their titles. The five Hachette Filipacchi brands (Elle, ELLE DECOR,
Car and Driver, Road & Track, and Woman’s Day) perform below those of Hearst, which completed its acquisition of the company on May 31. This merger will provide a valuable case study for the export and/or exchange of digital best practices.
As a group, Hearst magazine brands outperform Hachette Filipacchi Media brands online. Three of these five titles stand to gain from their new parent company’s digital best practices.
© L2 2011 L2ThinkTank.com
15
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
Auto & Cycles
Business & Finance
Entertainment & TV
Family
Fashion & Style
Cooking, Food, & Beverage
Health & Fitness
Home & Gardening
Lifestyle
Men’s
News & Politics
Science & Nature
Sports & Recreation
Women’s
A verage D i g i tal IQ by PA R E N T C ompa n y Organizations with More than One Brand in the Index
Genius
170
Disparity
140
62
Disparity
53
Disparity
46
Disparity
Gifted
82
Disparity
Disparity
34
46
AVG IQ
112
Disparity
57
AVG IQ
110
Average
110
58
Disparity
AVG IQ
106
Disparity AVG IQ
100
16
AVG IQ
98
AVG IQ
93
92
40
Disparity
AVG IQ
Challenged
90
Disparity
6
AVG IQ
AVG IQ
90
90
AVG IQ
84 AVG IQ
70
Feeble
71
© L2 2011 L2ThinkTank.com
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16
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
T op E I G H T R E F E R R A L & D E S T IN AT I O N S I T E S F O R M A G A Z IN E B R A Nd S Upstream and Downstream Traffic to and from Social Media Sites
Button vs. Feature
Upstream Traffic To Brand Site
Ensuring content is distributed across social networks is critical for brands seeking to enhance referral traffic. However, the relative gains from implementing additional sharing features beyond the dominant platforms is modest.
100%
Downstream Traffic From Brand Site
99%
99% = FACEBOOK
Why? First, upstream traffic from social media sites is over-
whelmingly driven by Facebook, which represents more than
= YOUTUBE
15 percent of such traffic across the top eight referral sites (and three fourths of the upstream traffic originating from social me-
= SOCIAL BOOKMARKING
80%
dia sites). Second, our data demonstrates no detrimental effect on annual traffic growth when brands exclude additional social bookmarking buttons, despite recent reports that StumbleUpon is becoming a major driver of upstream traffic across all
62% 60%
industries.6
52%
51%
Instead, basic improvements to the accessibility, diversity, and interactivity of content, as well as the incentives provided to recurring site visitors (or lack thereof) appear to have the most
40%
demonstrable impact on traffic.
32%
20%
14%
15%
14%
3% 0%
6. “StumbleUpon sends more traffic to US websites than Facebook,” Colleen Taylor, GigaOM, July 5, 2011.
© L2 2011 L2ThinkTank.com
1%
16%
3% 2%
1%
1%
% of Brands
% of Upstream Traffic
% of Brands
% of Downstream Traffic
for whom the following are a top eight source of upstream traffic
to brand sites originating from the following sources
for whom the following are a top eight source of downstream traffic
from brand sites to the following destinations
17
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
SITE CONTENT & ToOLS
Impact of S I T E C O N T E N T & T O O L S O N traff i c gro w t h
% of Brands With and Without the Following Features:
Content:
8%
% Year-on-Year Growth for Brand Sites With and Without the Following Features: 34%
92%
= WITH = WITHOUT
Video
= WITH = WITHOUT
15%
85%
16%
Increasing
Comments 84%
13%
Brand/Editor Blogs 59%
41%
6%
5%
Interactive Polls & Quizzes
1%
16% Sweepstakes & Giveaways
Tools:
0%
0%
Traffic Growth
84%
4%
3%
97%
Video
Commenting on Content
Original Blog Content
Interactive Polls & Quizzes
Sweepstakes & Giveaways
0%
Facebook Open Graph
= WITH = WITHOUT
10%
-4%
90%
-3%
38%
62% Sharing Widget (e.g., ShareThis)
60%
40% Social Bookmarking
© L2 2011 L2ThinkTank.com
Decreasing
-27%
18
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S Blog Diversity Blogs are becoming a standard feature of magazine sites as
Impact of B LO G I M P L E M E N TAT I O N O N traff i c gro w t h
readers demand original content between print cycles. Eighty-
% Year-on-Year Growth for Brand Sites With and Without the Following Features:
four percent of the brands in the Index maintain at least one blog. However, unlike other site features that demonstrate a high degree of conformity across the industry (e.g., subscrip-
= WITH
tion sign-up), blog implementation is diverse.
= WITHOUT
18%
Only 70 percent of the brands with a blog integrate content on the home page. This figure is surprising low as blogs typically Increasing
generate some of the timeliest content and provide some of the best opportunities for community engagement. More than 90 percent of brands that maintain a blog allow users to submit comments in response to a post. On average, users spend 30
8% 5%
Traffic Growth
percent more time on sites that allow commenting.
0%
5%
0% Blog Content Viewable on Home Page
Blog Permits User Comments
Blog Promotes Author of Post (Follow, Contact, etc.)
Blog Permits User Comments Without Sign-in
0% -1%
Decreasing
-4%
-15% New York Magazine’s Home Page integrated feeds from Vulture, its popular culture blog, as well as foodie-based Grub Street and fashion-oriented The Cut
© L2 2011 L2ThinkTank.com
19
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S Facebook: The New OS All 87 brands in the Index are present on Facebook. The average magazine has 250,000 “likes” and posts 26 times per week. The most active post upwards of 10 times per day. Both Family and Health & Fitness brands tend to perform better on Facebook, providing a diverse mix of wall content, including tips-of-the-day, recommended workout routines, daily recipes, and community questions.
M A G A Z IN E S U B S C R I P T I O N IN T E G R AT I O N O N FA C E B O O K % of Brand Facebook Pages With and Without the Following Features:
= WITH = WITHOUT
Playboy leads the Facebook arms race, focusing on branded and co-branded content exclusives delivered by rich media, interactive applications, and custom social media integration. O, The Oprah Magazine leads all titles in Facebook growth, utilizing competitions and event promotion offers coinciding with the final episode of The Oprah Winfrey Show in May to grow its page 74 percent during the data collection period.
49% 51%
More than 38 percent of all online referral traffic now originates from Facebook, and 49 percent of brands in the Index register Facebook as their number two source of upstream traffic (after Google).7 Publishers have been using the platform to grow brand awareness and drive traffic, but most have neglected to leverage their page to drive subscription services. Today, nearly a quarter of new magazine subscriptions are secured through Internet promotions.8 Although 100 percent of the brands in the Index maintain a link to a subscription page on their home page, only 49 percent of the brands provide such a link on their Facebook page and just 32 percent provide a dedicated Facebook tab outlining the current subscription offer. Only seven brands maintain a Facebook app that allows visitors to sign up for a subscription without leaving the Facebook domain (i.e., F-commerce).
Subscription Offer Link (Any Link in Any Tab)
8%
68%
32%
Dedicated Subscribe Tab
92%
F-Commerce Subscription Signup
7. “ShareThis Study: Facebook Accounts for 38 Percent of Sharing Traffic on the Web,” Erick Schonfeld, TechCrunch, June 6, 2011. 8. Association of Magazine Media (MPA), Internet Subscription Survey, 2010.
© L2 2011 L2ThinkTank.com
20
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
top 1 0 B R A N D S : FA C E B O O K L IKes
top 1 0 FA S T E S T- gro w i n g faceboo k accou n ts
(June 2011)
(May–June 2011)
5,828,349
Playboy
1,456,537
Vogue
Cosmopolitan
856,783
The Economist
790,451
783,347
Teen Vogue
472,893
Us Weekly
375,520
Parents
345,214
© L2 2011 L2ThinkTank.com
33%
Shape
28%
Self
28%
National Geographic
26%
Town & Country
25%
Bon Appétit
23%
Golf Digest
23%
0
20%
40%
60%
80%
00 ,0
00
20%
2, 0
00 0 00 , 1, 5
00 ,
00 0
Parenting
1, 0
00 0 50 0,
0
Maxim
37%
Better Homes and Gardens
987,306
Seventeen
74%
Parents
1,269,243
People
O, The Oprah Magazine
21
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S Size vs. Engagement While much of the conversation regarding Facebook has been
FA C E B O O K C ommu n i ty s i ze v s . e n gageme n t rates
about the size of an organization’s page, we believe that a more
Excluding brands with less than 1500 fans (n=85)
important metric is the percentage of the community interacting with brand content. Across magazines, interaction rates were negatively correlated with page size.
FAMILIES
TRIBES
Only one brand in the Index, Parents, maintains a high interac-
Field & Stream
tion rate within a comparatively large fan base. The magazine accomplishes this through an inquisitive voice (almost all comments are framed as questions to fuel discussion) and content
Parents
Architectural Digest
that resonates with its primary audience (including informational
Size + Interaction secured by inquisitive voice, community polling, and frequent updates
tips and inspirational comments). Brands closing in on the desirable “Tribes” quadrant include
Entertainment Weekly, O, The Oprah Magazine, and Essence. O, The Oprah Magazine Essence
Entertainment Weekly
Runner’s World Sports Illustrated
= “TRIBES” BRANDS: Magazines with Large Facebook Communities and High Engagement = MAGAZINES with the best chance of becoming “TRIBES” BRANDS by Increasing Fan Base, Engagement, or Both
LEVEL OF ENGAGEMENT
ELLE Maxim
Teen People Vogue
COHORTS
Playboy
CROWDS
SIZE OF COMMUNITY Note: Horizontal axis (Size of Community) is graphed on a logarithmic scale.
© L2 2011 L2ThinkTank.com
22
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
O V E R A C HI E V E R S & U N D E R A C HI E V E R S
Circulation ≠ Fans and Followers There is a weak relationship between a magazine’s circula-
Overachievers:
tion and its number of Facebook “likes” or Twitter followers. Only three brands on Facebook and three on Twitter maintain
Po pu la Go r Me od c H ha La ous nics die ek e s M ’ Ho epin or e me g Jo Tra ur na dit l ion Sm al H ar om t In Mon e To ey uc M hW en ’s eek l St Jou y ar rn al To wn & Co un tr y
Actual Facebook Fans vs. Predicted Facebook Fans Based on Circulation Data (Linear Regression)
250%
a fan/follower base that meets or exceeds their average circula0%
the most widely read brands, which arguably have the most to prove online (i.e., successfully transitioning a large audience online without cannibalizing print revenue).
Ne tw
d
than just active readership—a frightening prospect for some of
-250% -500%
Fo o
This suggests that the social media battleground is about more
or
Pl
ay b
both platforms.
oy Vo k M gue ag az ine Co Peo sm ple Th opo e E lita co n no Te mis en t Vo g u Se ve e nt Us een W ee kl Pa y re nt s
tion per issue. No brands manage to accomplish this feat on
-750% -1000%
Underachievers:
2 0 1 0 T otal pa i d & V er i f i ed C i rculat i o n (Average per Issue) Avg. Circ. Per Issue (FY2010)
5
Woman’s Day
3,907,651
6
Family Circle
3,845,395
7
Ladies’ Home Journal
3,834,461
8
People
3,578,189
9
TIME
3,313,739
10
Sports Illustrated
3,193,688
Source: Association of Magazine Media (MPA); Circulation Facts & Figures, Circulation for All Audit Bureau of Circulations (ABC) Magazines, 2010
© L2 2011 L2ThinkTank.com
Be tte r Tra Hom e dit io s a Ro nal nd Ga H ad & ome rde ns Re Tr db ack oo k W om an Re ’s D ad er ay Go ’s D ig od H es To ous t wn ke ep & Co ing In To un uc tr Fie h W y ld ee & k St ly re am
4,423,181 0%
-250% -500%
ire tW d e Ne ekly ws we ek Th He eE a co lth Fo no od m Ne New ist tw or Yor k M ke ag r az ine
Good Housekeeping
250%
en
4
Overachievers:
tyl e
4,493,067
W
National Geographic
nm
3
tai
5,822,924
ter
Reader’s Digest
ple
2
Actual Twitter Followers vs. Predicted Twitter Followers Based on Circulation Data (Linear Regression)
InS
7,660,754
En
Better Homes and Gardens
Pe o
1
E
Brand
TIM
Rank
-750% -1000%
Underachievers:
23
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S Twitter All 87 brands in the Index maintain an active presence on Twitter, averaging 330,000 followers and 17 tweets per day. The most active 20 percent of the brands in the Index tweet upwards of 40 times per day. News & Politics and Fashion & Style publications have the most prominent Twitter followings. Both categories excel at delivering time-sensitive information bites and links to the latest blog entries. The strongest brands don’t just broadcast, they also engage in conversations. Last year, Seventeen offered a special subscription deal to its Twitter followers ($5 for 12 issues), which resulted in 170 paid subscriptions in less than 24 hours.9 Promotional content helps publications like Seventeen achieve high growth in followers (14 percent during the study period), despite the fact that the brand tweets half as frequently as its primary competition, Teen Vogue. Only 34 percent of magazines posted links to other social media accounts from their Twitter stream, suggesting limited social
Seventeen builds its Twitter base via a healthy stream of promotional content
media integration.
9. “How Magazines Use Social Media to Boost Pass-Along, Build Voice,” Susan Currie Sivek, PBS: Media- Shift, March 16, 2010.
© L2 2011 L2ThinkTank.com
24
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S
B E S T IN T W E E T: T O P 1 0 follo w ers
T op 1 0 FA S T E S T- G R O WIN G T WI T T E R A C C O U N T S
(June 2011)
(May–June 2011)
2,646,954
Time
2,626,367
People
Entertainment Weekly
1,619,847
1,417,223
Wired
Newsweek
1,392,836
1,350,541
Health
The Economist
1,215,258
1,039,866
Sports Illustrated
1,014,028
© L2 2011 L2ThinkTank.com
ESPN The Magazine
18%
14%
ELLE DECOR
12%
In Touch Weekly
12%
Bloomberg Businessweek
12%
Bon Appétit
12%
Prevention
11%
Parents
11%
0
10% 0
5%
10%
15%
20%
25%
3,
00
0,
00
0 00 0, 50 2,
2,
00
0,
00
0
GQ
0 1,
50
0,
00
0 1,
00
0,
00
0 50
0,
00
0
National Geographic
22%
Seventeen
2,022,690
InStyle
Vogue
25
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S YouTube A recent study of video viewing habits found that 57 percent of
T op 1 0 B ra n ds : Y O U T U B E
survey respondents are more likely to watch rich media content
Brand Channels with the Most Upload Views
when it is shown in the context of an article, suggesting an op-
(June 2011)
portunity for magazine brands to increase perceived value on digital properties.10
National Geographic
566,153,387
Ninety-three percent of the brands in the Index maintain an active YouTube channel. On average, they boast 289 videos,
140,928,267
Sports Illustrated
nearly 12,000 subscribers, and approximately 400,000 channel views. During the time period in which this study was conducted, brands averaged more than 9,000 upload views per day. Over the past two years, YouTube has engaged in content partnerships with National Geographic, Sports Illustrated, and Motor
Trend, recognizing the important role publishers can play in the platform’s growth. However, Southern Living registered the fast-
102,273,730
Motor Trend
Playboy
83,614,262
Seventeen
67,443,234
est growth in upload views during the study period, incorporating video links to instructional content featuring contributing
Maxim
53,285,940
O, The Oprah Magazine
51,729,694
00 0 00 0, 60 0,
00 0, 00 0 50 0,
00 0, 0 20 0,
00 0
0 10 0,
00
36,218,917
00 0, 0
Maxim
40 0,
40,429,532
30 0,
Parents
00
41,858,716
,0 00
Us Weekly
00 0, 00 0
editor Troy Black within its recently released iPad app (Big Book
of BBQ).
10. “Yahoo Study Shows Online Video Watching Shifting to Primetime,” Erick Schonfeld, TechCrunch, June 29, 2011.
© L2 2011 L2ThinkTank.com
26
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S Email More than 90 percent of the publications in the Index have email
T op 1 0 B ra n ds :
marketing programs. However, 16 of the brands that offered
Average Emails Per Week
opt-in failed to respond within six weeks of signup. Participating magazines averaged 2.5 emails per week. Entertainment Weekly leads the pack with 29 emails per week.11 Across the Index, nearly 80 percent of email content is viewable on mobile devices.
Entertainment Weekly
28.9
However, nine out of 10 publications failed to incorporate sharing options directly into emails via application programming inter-
8.8
Money
faces (APIs) provided by social media platforms. E M A I L M A R K E T IN G % of Brands With & Without the Following: 7%
Every Day with Rachael Ray
7.6
Parents
7.5
93%
Email Signup 21%
TIME
6.5
Lucky
6.3
Newsweek
6.3
Prevention
5.9
Glamour
5.9
Fast Company
5.7
79%
Viewable on Mobile 31%
69%
Customization Options 54%
46%
Brand Social Media Links 90%
10%
Personalization 92%
8% Social Sharing
0
5
10
15
20
25
30
11. Entertainment Weekly has incorporated an “Alerts” for Hollywood Insiders option into their e-mail newsletter sign-up process. This 24/7 breaking news coverage serves to inflate its steady-state aver age. “Alerts” also form the basis for a secondary Twitter feed (@EWAlerts).
© L2 2011 L2ThinkTank.com
27
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S Apple-Centric (Apple of Their Eye)
MOBILE COVERAGE % of Brands Participating on the Following Platforms:
A review of mobile-centric efforts reveals a pervasive prioritization of the iOS platform—with more brands present in the iTunes store than any other platform, including mobile web
= MOBILE WEB
development efforts (which are device agnostic). Only 57 per-
= iOS PLATFORM
cent of magazine brands have created mobile-optimized sites,
= OTHER PLATFORMS
perhaps working under the assumption that users will pick-up
= E-READERS
82%
their Apple device and reflexively jump right to the iTunes App
= SMS = GEOLOCAL
Store instead of Safari. Only 31 percent of brands maintain a dual strategy—actively maintaining a mobile site and develop-
67%
ing apps for each iOS device. Magazine demographics explain some of this disparity in the
60%
context of other device platforms. A recent Forrester Research
59%
57% 51%
study shows an interesting gender divide between tablet and e-reader owners, with the men skewing towards the former and the women towards the latter. Top sellers on Barnes & Noble’s Nook Color e-reader include: Us Weekly, Shape, Women’s
44% 40%
Health, and Every Day with Rachael Ray.12 Our findings support
31%
the hypothesis that many magazines are choosing to selectively invest in either tablets or e-readers, with less than 70 percent of brands providing content on both.
20%
20%
18%
11%
With respect to magazines, Apple maintains a clear lead when
10%
it comes to mobile operating system development. Each of the
7%
27 magazines with an Android app also has either an iPhone
Mobile Web
Fo u
rs qu a Fa re ce bo ok
S SM
le
io
nd Ki
k
Zin
No o
ry er kb
oid dr
Bl ac
Bo
An
th s iP iPa ho d ne Ap & ps
S
pp
eA
iO
tiv Na iPa
d
that of its iOS peers (which were typically first to market).
0% Op Mo tim bile iz Si ed te
or an iPad app, with Android app functionality closely mirroring
iOS Platform
Other Platforms
E-Readers
SMS
Geolocal
12. “Female Magazine Fans Flock to Nook Color,” Jeremy Peters, New York Times, May 22, 2011.
© L2 2011 L2ThinkTank.com
28
Digital IQ Index ®:
Magazines
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K E Y F IN D IN G S iPad iSolation We reviewed more than 90 iPad-native applications produced by brands in the Index. Of the 58 brands present on the tablet device, only 43 make the full digital edition of their print product available on the iTunes store as a unique application (excluding those brands relying exclusively on Zinio’s cross-platform reader). Efforts on this platform are impressive, but consistently lack a
S U B S E T of i PA D A P P S R E P R E S E N T IN G D I G I TA L ed i t i o n O F T H E P R IN T M A G A Z IN E % of Brands With and Without the Following Features:
key feature in terms of functionality. Despite the near-universal ability to share a link to site content via Facebook or Twitter, only 42 percent of the brands publishing an iPad digital edition
14%
enable sharing of app content to either social media platform.
86%
Rich Media Content 28%
72% Link to External Content
33%
67%
Interactive (“Gesture”) Page Elements 58%
42% Embedded Social Sharing
= WITH = WITHOUT
© L2 2011 L2ThinkTank.com
29
Digital IQ Index ®:
Magazines
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D I G I TA L P R O J E C T I O N S
L2’s road map for navigating the past, present, and future of magazines online Sales Outlet
Subscription Promo Cover Platform for Digital Edition Digital Pricing Model Must-Have Digital Edition Feature User Accounts Forums Archives E-Commerce
Yesterday Corner Newsstand Annoying 3x5 Cards Disrupt Reading Experience Static Zinio Full Newsstand Price; No Subscription Option Moving Covers and Interactive Graphics Unlock Ability to Comment Active Premium “Shown in Image” References —
X-Factors
© L2 2011 L2ThinkTank.com
Tomorrow
Today App Store Download Annoying Pop-Ups Disrupt Viewing Experience Dynamic iPad Discounted Price; Digital-Only Subscription Ability to Share Content/ Enhanced Readability Become Interoperability with 3rd-Party Credentials Defunct Free Pass-Through Storefront via Search Partner —
Cross-Brand Digital Newsstand Targeted Social Media Promotion (Like to Subscribe; Reward for Referral) Fully Interactive HTML5 Modular Print / Digital Subscription Ability to Aggregate Content Across Sister Publications Enable Access to “Social” Site Features Discontinued Basis for Microsite Curated Content on Specialty Retail Site Google+ iTunes Newsstand Google E-Reader Amazon Tablet
30
Digital IQ Index ®:
Magazines
Want to know more about your brand’s ranking? CONTACT US Starting in March, Self adopted a “like gate” strategy for its Facebook page, synced to fresh content inspired by each new issue
F L A S H O F G E NI U S
ROUTINE, ROUTINE, ROUTINE The strongest magazines on Facebook have fueled growth in page “likes” by updating the brand’s Facebook landing page in conjunction with the release of a new issue and coupling this fresh content with rewards, promotions, and access to live events hosted online. By maintaining a timely content program, Self provides an additional dimension to its print content and fosters a sticky relationship with its Facebook fans.
FACEBOOK TIMELINE: Brand “Likes” Per Day on Facebook (May 8 – June 8, 2011)
MAY 26
Continued momentum from 5/25 Twitter community solicitation: “Our Facebook page is 1,000 fans away from 100,000 fans! Like our page & help us reach our goal (& you’ll get fun perks!)”
4,000 3,500
MAY 25
3,000
MAY 17
Leslie Blodgett (Executive Chairman of makeup company Bare Escentuals) hosts Facebook event
2,500 2,000
MAY 11
Angus Mitchell Salon hosts Facebook event
MAY 10
1,500 1,000
Jillian Dempsey (Global Creative Color Director for Avon) hosts Facebook event
MAY 23
Kraft Foods guest hosts Facebook event as part of the 2011 Healthy Food Awards
JUNE 6
Dr. Ayala from Herbal Water hosts Facebook event
Tone It Up Sweepstakes #1 (Workout DVD)
MAY 27
Brand Manager for Sweet Leaf Tea hosts Facebook event JUNE 5
Karena & Katrina (trainers from health & fitness company Tone It Up) host Facebook event
JUNE 1
Exclusive subscription rate for Facebook fans
MAY 24
Transition to June issue promotion
JUNE 7
Tone It Up Sweepstakes #2 (10 pairs of Sketchers ToneUps shoes)
© L2 2011 L2ThinkTank.com
1
2
3
4
5
6
7
8
6/
6/
6/
6/
6/
6/
6/
6/
31 5/
29
30 5/
5/
28 5/
27 5/
26 5/
25 5/
24 5/
23 5/
22 5/
21 5/
20 5/
19 5/
18 5/
17 5/
16 5/
15 5/
14 5/
13 5/
12 5/
11 5/
10
9 5/
5/
8 5/
500
31
Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S
Channeling Fan Enthusiasm Less than 25 percent of magazines incorporate interactive Facebook applications and less than 15 percent solicit usergenerated content beyond commenting. Golf Digest does both—recently porting a bracket version of its annual ranking of America’s 100 Greatest Public Golf Courses (published since 1966) to Facebook. Each week, fans vote on a head-to-head matchup of public courses, and over summer will determine the 2011 “Fans’ Choice” for the best public course in the country.
Golf Digest engages with its users by allowing them to choose America’s Greatest Public Golf Course through a competitive bracket
Golf Digest’s static version of the rankings on their site
© L2 2011 L2ThinkTank.com
32
Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S
ON YOUR MARK, GET SET… CO-BRAND As magazines rapidly expand their digital footprint to leading social media platforms, advertisers are often left behind. The Facebook app “BreaKaway” is designed to blend into the social media mold by presenting profiles of various running champions who use K-SWISS gear to win races. It goes on to present social media links to official K-SWISS online properties, a series of tips and tricks for running enthusiasts, and an interactive gallery of KSWISS shoe models with direct links to the brand’s online store.
The K-SWISS sponsored Facebook app provides Runner’s World Facebook users with profiles of their favorite running champions, tips and tricks, and an image gallery of their latest running shoe models
© L2 2011 L2ThinkTank.com
33
Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S
E(ditorial)-Commerce Declining advertising revenue combined with growing online retail sales has created an opportunity for Fashion & Style publications. Several of these brands have launched affiliated shopping microsites or exclusive partnerships with members-only shopping sites.13, 14 These opportunities allow magazines to leverage their editorial influence while maintaining a degree of separation from direct product sales and fulfillment. Glamour’s shopping portal (powered by ShopStyle) aggregates thousands of products across several hundred online retailers.15 While the portal contains several innovative features such as “sales alerts,” its “genius” becomes apparent when browsing Glamour’s main page. Within select photo galleries, users are presented with an option to “Shop This Look”—which then redirects them to similar items or the point-of-sale if the item is one-of-a-kind.
The Glamour shopping microsite is filled with products, sales alerts, and shoppable photo galleries with click through to point-of-sale
13. “GQ, Gilt Groupe Team Up on E-Commerce Site,” Lucia Moses, Adweek, June 16, 2011. 14. “Social Shopping Gets Personal: Lucky Magazine Partners With This Next,” Lydia Dishman, Forbes.com: Style Inc., July 11, 2011. 15. “The Great Glossy Sell-Out,” Kat Stoeffel, New York Observer, July 5, 2011.
© L2 2011 L2ThinkTank.com
34
Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S
Crowdsourcing Reinterpreted The majority of the brands reviewed in the Index have been slow to offer user-centric tools, features, or access privileges that diverge from the successful sweepstakes model. One notable exception is National Geographic’s “Your Shot” program. “Your Shot” enables readers to submit their own photos. Each weekday, magazine editors select 12 photos for further consideration by the user community. Each month, the community is given the opportunity to vote for their personal favorites. All uploaded photos are archived on the site, and a selection of each month’s best images is printed in the magazine. Since launching in June 2006, the site has accumulated nearly 138,000 users and more than 970,000 images.
National Geographic’s “Your Shot” program has accumulated nearly one million user-generated images since its launch in 2006 © L2 2011 L2ThinkTank.com
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Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S
What’s Old is New Again Although more than 40 percent of the brands analyzed maintain an issue archive, only a handful differentiate. Some of the more engrossing archives (e.g., New Yorker, Rolling Stone) are offered as premium content or as a subscriber perk. Alternatively, some of the most voluminous archives (e.g., Popular Science) are accessible thanks to Google Books’ archival efforts. However, only Vogue uses its archive to introduce a new site feature. “Voguepedia,” launched in early May, is an encyclopedia for all things Vogue.16 The tool draws from 119 years of content and allows readers to retrieve profiles on designers, brands, models, personalities, and makeup artists. Profile pages are broken down into useful sections, each with forwarding links to accessible Vogue content, including archived collection slideshows and recent appearances in web content.
An archive of various celebrity personalities can be found in “Voguepedia”
“Voguepedia” enables users to retrieve profiles on designers, brands, models, personalities, and makeup artists
16. “119 Years of Vogue, Now Available on Voguepedia,” Misty White Sidell, Fashionista.com, May 9, 2011.
© L2 2011 L2ThinkTank.com
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F L A S H O F G E NI U S
Sonic Bloom-berg Available since April, Bloomberg Businessweek for iPad satisfies the needs of readers seeking both news and research. The app features intuitive, persistent “Table of Contents” navigation as well as an expansive company index. A “Related” tab on the right-hand side provides access to additional information about
Bloomberg Businessweek’s iPad app is equipped with intuitive navigation, sharing, and search features
companies cited within articles, such as stock quotes and other recent news. Users can share content via email, Facebook, and Twitter in addition to saving content to a personal in-app library. The app’s advanced search functionality is equally impressive, allowing users to customize their search by company and over multiple issues.
SEARCH
© L2 2011 L2ThinkTank.com
ACCESS
CLIP
SHARE
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Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S + Parlez-Vous Innovation? Despite the propensity of women to consume magazine content via e-reader rather than tablet platforms, iPad editions of Fashion & Style brands are among the most innovative in the industry, featuring cutting-edge interactive elements and rich media alike. Elle and Marie Claire are ahead of the pack, showcasing content and featured products through animated covers, tap buttons that reveal additional content, as well as interactive quizzes and live contests. Perhaps most impressive are the native e-commerce tools showcased in both apps. Elle’s app has a “Buy Now” API (powered by ShopStyle) that is naturally integrated within its
Elle showcases content by providing readers with the opportunity to learn more and/or buy with the touch or flick of a finger
combined swipe and scroll navigation. Marie Claire’s app offers users 360-degree views of items with live links to each product’s respective storefront.
Marie Claire highlights links that direct to brand sites without even leaving the app
Marie Claire’s 360° view provides readers with a closer look at each of its showcased products
© L2 2011 L2ThinkTank.com
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Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S Live Your Best App O, The Oprah Magazine does a commendable job Oprah gets closer to her readers by inviting them to interact with each issue
of leveraging both design and technology on its iPad app. Tapping the cover of the poetry-themed April issue launches an embedded video of Oprah reading a selection from the collected works of Langston Hughes. Keeping with the theme, there is an issue-specific interactive poetry game that enables users to create poems and save them to their image galleries. Likewise, the “Reading Room” section showcases books, allowing users to read excerpts, share via email, add content to favorites, and buy the full edition through Amazon or Barnes & Noble. Beyond books, featured products are effortlessly browseable, easily shared by email, and linked to Oprah’s “O List” storefront and other e-commerce sites.
Browse books, products, and recipes; Read and share book reviews & excerpts; View recipes and watch how-to videos; all within this app
© L2 2011 L2ThinkTank.com
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Digital IQ Index ®:
Magazines
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F L A S H O F G E NI U S HTML5 DODGING THE APP-ALANCHE
OLD SCHOOL CNNMoney’s Tablet View Beta— provides tile view of breaking stories
Although many magazine brands are investing heavily in tablet apps, others are bypassing the iTunes store and Android marketplace altogether, creating both mobile-optimized and tablet-optimized sites. Given that the latter are such a recent phenomenon, the degree to which brands have adopted this “pass-through” strategy varies considerably. CNNMoney, the parent brand of Fortune and Money magazines, has released the beta version of money.cnn.com/ tablet, a scaled-down adaption of the main site designed for viewing in landscape mode.17
NEW SCHOOL
Another Time, Inc. publication, Sports Illustrated, made waves last
Forbes and Marie Claire’s tablet-optimized HTML5 sites
year with a well-received HTML5 demo that spurred a fresh cycle of innovation across the industry. Since then, there have been several advancements. This June, Google Labs released Swiffy, a free barebones Adobe Flash-to-HTML5 conversion tool.18 Forbes and Marie Claire have followed this lead, offering HTML5powered, tablet-optimized sites that look and behave like iPadnative apps.19 This platform, pioneered by Onswipe, provides the opportunity to recapture subscription revenues lost to Apple and mitigates some of the bandwidth, memory, and time demands of a permanent application.
17. “Will Publishers Choose the Open Web Over Apple’s Walled Garden?” Matthew Ingram, GigaOM, May 24, 2011. 18. “Swiffy: convert SWF files to HTML5,” Gordon Michael, The Official Google Code Blog, June 28, 2011. 19. “Onswipe Makes Any News Site Touch-Enabled With HTML5 Magic,” Ryan Singel, Wired: Epicenter, June 21, 2011.
© L2 2011 L2ThinkTank.com
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TEAM SCOTT GALLOWAY Clinical Professor of Marketing, NYU Stern Founder, L2 Scott is the founder of L2, a think tank for digital innovation, and Clinical Professor of Marketing at the NYU Stern School of Business where he teaches brand strategy and digital marketing. Scott is also the founder of Firebrand Partners, an operational activist firm that has invested over $1 billion in U.S. consumer and media companies. In 1997, he founded Red Envelope, an Internet-based consumer gift retailer (2007 revs, $100mm). In 1992, Scott founded Prophet, a brand strategy consultancy that employs over 250 professionals in the United States, Europe, and Asia. Scott was elected to the World Economic Forum’s “Global Leaders of Tomorrow,” which recognizes 100 individuals under age 40 “whose accomplishments have had impact on a global level.” Scott has served on the board of directors of Eddie Bauer, The New York Times Company, Gateway Computer, and Berkeley’s Haas School of Business. COLIN GILBERT L2 Colin is a strategic consultant with more than three years of experience working at the nexus of the public and private sectors. Serving as a principal at the Civitas Group in Washington, D.C., he helped lead research, advisory, and due-diligence engagements for a range of clients spanning technology start-ups, defense contractors, and government agencies and specialized in matters pertaining to cloud computing, cybersecurity, and online privacy. Colin received a B.A. in History from Stanford University and an M.P.A. from the London School of Economics. While completing his graduate studies abroad, he worked with Accenture to construct case material used to demonstrate the versatility of the firm’s Public Service Value (PSV) methodology.
© L2 2011 L2ThinkTank.com
MAUREEN MULLEN L2
JON WEINBERG L2
Maureen leads L2’s Research and Advisory Practice where she helped developed the Digital IQ Index®. She has benchmarked digital marketing, e-commerce, and social media efforts of more than 300 brands across Pharma, Auto, Luxury, Specialty Retail, Beauty, and the Public Sector. Maureen also has led digital strategy consulting engagements for a variety of Fortune 1000 clients. Before joining L2, Maureen was with Triage Consulting Group and led managed care payment review and payment benchmarking projects for hospitals, including UCLA Medical Center, UCSF, and HCA. Maureen has a B.A. in Human Biology from Stanford University and an M.B.A. from NYU Stern.
Jon Weinberg began his career as a strategist and copywriter at The Moderns, a boutique Manhattan-based branding consultancy, where he worked with clients ranging from start-ups to Fortune 1000 corporations. While there, he managed digital strategy for both the firm and its clients. Jon received an A.B. in Government with a secondary in Near Eastern Language and Civilizations from Harvard University, where he served as an associate editor for the Harvard International Review.
R. DANIELLE BAILEY L2 Danielle began her career at The Home Depot, Inc., where she led a variety of internal consulting engagements focused on supply chain, merchandising, and in-store process improvement. She went on to manage the implementation of award-winning mobile initiatives for several large media clients, including The New York Times Company, NBC Universal, Disney/ABC, Maxim magazine, and Zagat. Danielle has a B.S. in Systems Engineering from the University of Virginia and an M.B.A. from NYU Stern. CHRISTINE PATTON Creative Director, L2 Christine is a brand and marketing consultant with more than 15 years of experience creating brand identities and marketing communications for aspirational and luxury brands. As creative director of L2, she leads the translation of the L2 brand across all touchpoints, with a particular focus on the visual packaging of L2’s research. She began her career at Cosí, where she developed the brand and oversaw its evolution from concept through growth to 100 restaurants. Since then she has provided creative direction for a wide array of clients, including the launch of Kidville and CosmoGIRL! magazine. Christine received a B.A. in Economics and Journalism from the University of Connecticut and an M.B.A from NYU Stern.
LINDA MATELJAN L2 Linda began her career as a consultant at DTZ Pieda Management Consultants in London, where she worked on development feasibility projects for leisure and retail real estate clients. She went on to manage the investment optimization of a $30 million real estate trust, as well as develop brandbuilding initiatives for such clients as La Prairie and JPMorgan Chase in the United States. Linda has a Bachelor of Fine Arts from the University of Western Australia, a BA Hons (1st) in Business from the University of Westminster and an MSc in Real Estate Investment from the University of Reading. JESSICA BRAGA L2 Jessica, a freelance art director, specializes in identity, iconography, event graphics, and invitations. Initially beginning her career in fashion, designing textiles and prints at Elie Tahari’s design studio in New York City, she then focused on the Elie Tahari brand aesthetic and consistency in design across its many developing disciplines. Desiring to explore other facets of design, she went on to become the art director of a small, prestigious design firm in Chelsea, where she focused on event graphics, digital and print collateral, and brand aesthetics for companies both large and small. Jessica holds a B.F.A. in Graphic Design, as well as an A.A.S. in Illustration, from Rochester Institute of Technology.
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UPCOMING 2011 EVENTS 07. 28.11 L2 Clinic Video & Celebrity This half-day immersion explores successful strategies to drive engagement and brand awareness through the use of online video and traditional—and untraditional—celebrities.
L2 is a think tank for digital innovation. We are a membership organization that brings together thought leadership from academia and industry to drive digital marketing innovation.
09. 09.11 L2 Clinic
China
A full-day clinic devoted to raising brands’ Digital IQs in the world’s biggest—and soon-to-be most digitally savvy— consumer market.
10. 14.11 L2 Clinic The Social Graph: Pharma Re search
Digital IQ Index®: The definitive benchmark for online competence, Digital IQ Index® reports score brands against peers on more than 350 quantitative and qualitative data points, diagnosing their digital strengths and weaknesses.
An intensive workshop examining social media’s platforms and best practices through a Pharmaceutical industry lens.
11. 10.11 L2 Forum Innovation 2011 Called the “TED for marketing,” L2’s third-annual Innovation
EV ENTS
Forum will bring together the highest density of scholars,
Forums: Big-picture thinking and game-changing innovations meet education and entertainment.
business leaders, startups, and marketing executives in
The largest gatherings of prestige executives in North America.
North America.
300+ attendees Clinics: Executive education in a classroom setting with a balance of theory, tactics, and case studies.
60 –120 attendees Working Lunches: Members-only lunches led by digital thought leaders and academics. Topic immersion in a relaxed environment that encourages open discussion.
12 – 24 attendees MBA Mashups: Access and introduction to digital marketing talent from top MBA schools. co nsu lt ing
Advisory Services: L2 works with brands to garner greater return on investment in digital initiatives. Advisory work includes Brand Digital Roadmaps, Social Media Strategy, and Site Optimization engagements. MEMBE RSH IP
For membership info and inquiries: membership@L2ThinkTank.com
UPCOMING 2011 Research Prestige 100® Reports:
China Digital IQ Index® Reports:
Specialty Retail Beauty Fashion & Leather Goods Watches & Jewelry GEN Y AFFLUENTS Reports:
Prestige Brand Ranking
A Think Tank for DIGITAL INNOVATION
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