Life magazine reborn online

Away from all the doom and gloom of the markets some really good news...one of our favourite magazines Life is to be reborn.

The photojournalism magazine closed in 2000, is to gain a new lease of life on the web as a massive photo archive thanks to a deal with Getty Images.

Life.com will allow access to millions of archived photographs from the magazine, best known for its images of presidents, wars and Hollywood celebrities from the 40s, 50s and 60s. It was published from 1936 until 2000.

Life.com will launch early next year. Searching and viewing images on the website will be free.

Hooray

Time to run or time to fight?

All around us is the all pervading air of panic.

The financial crisis has introduced the public to names and issues that this time last year were the preserve of the City boys (and girls). The housing market continues to shrink faster than a snowman in April, and the Government continues to twist and shout like a sky blue football terrace in mid-anthem.

Today, more forecasts for the 2009 advertising market have escaped, battering the already browbeaten media sector. DMGT has issued a profits warning, Trinity Mirror continues to cut costs, ITV has seen its share price decimated (like its regional news and content is about to be), Channel 4 is looking to shed jobs, and regional newspapers are reporting 20%+ declines in ad revenues across multiple sectors.

So, what to do then?

We could all head down to Turnstile, the Cold War nuclear bunker under the Cotswolds, lock the doors and resurface in 2011 when everything looks a bit better.

Or, we could take a deep breath, and focus on the basics, "concentrate on the knitting" as one famous media guru used to say.

Even looking at the UK, there are still 60 million human beings out there (give or take a few million that the Government can't count, track down, tag, place on a register or lock-up).

Disposable income is still down, but people will still consume media in some format, they have always done so in the past, and always will do in the future. Strong brands with loyal audiences have longevity and long term profitability, the key is protecting this during the cold dark winter nights.

We think these are the basics, get these right and the cold upcoming winter may pass by without claiming too many more victims.

Knowledge is the foundation - you are fighting for a share of a shrinking consumer wallet (or purse), you have to understand why consumers spend money on your brand to understand how you protect this going forwards.

Recognising your customers - you need to know who they are, and their value to you, at an individual level - data is crucial.

Relationship building with your customers - talk to them, nurture them, engage them, be interactive with them, listen to them, watch them talking to each other about you.

Reward your customers - if you don't reward them, then someone else will.

Retain your customers - in any declining market it's easier to retain existing customrs than acquire brand new ones. Particularly in markets where the under 30s have grown up never paying for any content

Be brave - "There is no shame in failure. The shame is in not learning from it". A quote from the famous English philosopher Eddie "The Eagle" Edwards. A test is a test, if it doesn't work then learn and move onto the next test. If it was easy, everyone would be doing it already.

Be smart with budgets - you need to know what's working, why it's working and who it is working against, in as near to real time as possible. Insight is an investment, but done smartly, it will pay its way ten-fold.

Do the knitting right, and you'll have a large enough jumper to get you through the nuclear winter nice and warm while everyone else catches pneumonia. The future's bright, but not for everyone. Evolution did away with Dinosaurs, Dodos and Lehman Brothers, don't let it add you to the list.

A soothing piece of humour

Thanks to the New Yorker for this one.

Market Evolution's sister business For Fans relaunches

We've been hard at work smartening up our sister business www.forfans.co.uk. The service proved hugley popular with stay at football home fans last season.

The idea is to broaden the content selection and ultimately we hope to cover not only Sport but entertainment programmes as well

Please check it out. It may well help to solve some of those pesky Birthday & Christmas gift problems!

Metro sues Metro

Thanks to Dr. Piet Bakker for this one.

German wholesale retailer Metro is thinking about suing free paper publisher Metro International after the successful lawsuit in Hungary.

In August (see previous post) the Hungarian Metro was forced to change its name to Metropol after the retailer argued successfully that the use of the ‘Metro’ brand was an infringement to its own right.

According to business website B2B Köln first options would be Italy and France.

Other contested markets could be Greece, the Netherlands, Portugal, the Czech Republic and Russia. Also Belgium, the UK and Poland where other publishers operate Metro papers could be affected.

The Metro brand, however, is not used in all markets. In France, Italy, Russia, the Czech Republic, Denmark and Poland the company does use that specific brand name. In the Netherlands, Greece, Portugal, Spain and the UK the supermarkets are called Makro. In Belgium and Greece both names are used.

In Denmark the Metro paper is called MetroXpress. In Spain it is officially called Metro Directo although Metro is the brand used.

The Metro Cash & Carry group is longer around than Metro International (40 against 13 years) and is active in 28 markets.

Its not funny being a journo

click to increase size

Why US and European Govts and Central Bankers are sooooo worried

We havent blogged much on the financial crisis because it isnt an area that we feel equipped to pass wisdom on but it strikes us that Robert Peston's (BBC Business Ed) piece below is the truest reflection of not only the extent of the problem but the seriousness of its consequences. This is why Govt and Central bankers are moving heaven and earth to put a stop to this thing.

China could easily end up owning the lion’s share of the US and UK’s financial systems. - Robert Peston, BBC

With the collapses on Wall Street this week and signs in the United Kingdom pointing towards a housing market crisis as well, it appears that the U.S. and the U.K. have left the door open for other world economies to step in and take over the global economy. Peston reports: “It's a world in which the Chinese state, if it co-ordinated the investments of its cash-rich institutions, could end up owning more-or-less the entire financial system of the US and the UK.” It is conservative institutions, he says, and those with simpler business models with a history of careful management of their funding sources, which will become the new superpowers.

Introducing a new business model to the world of magazine selling,

This sounds like a really good idea and one that - finally - recognises that freedom and choice are crucial......

Time Inc just launched Maghound, a mix and match service for periodicals. Maghound members don't subscribe to a fixed set of magazines. Instead, they pick the number of magazines they'd like to receive every month, and can then change the selection of titles as often as they like. One month they might select Food & Wine, Forbes and Women's Health, before switching to People, New York Magazine and Smithsonian. (While the current selection of 200 titles isn't as substantial as many magazine lovers would like, it does obviously include magazines that aren't owned by Time Inc.)

Freedom of choice extends to membership terms, too—customers don't have to commit to an annual contract and can cancel at any time. And pricing is tiered: USD 4.95 for three titles a month, USD 7.95 for five, USD 9.95 for seven titles, and USD 1 per title for eight or more titles. To keep track of their mix of magazines, members can view expected delivery dates in their online account.

Metroexpress no more in Croatia

Newsflash: Metro International has closed its franchise operation in Croatia, which published the free newspaper Metroexpress in Zagreb. The company's decision followed poor results over the past six months.

This surprises us. Croatia is a fast growing economy with a fast growing - young - professional class which should be perfect reader material for Metro.

So what went wrong?

Well the failure in Croatia above all is yet another example of the weakness of the FREE model. Being totally dependent on a single revenue stream as the FREEs are isnt great by any measure. Its worsened by having that single revenue stream derived entirely from (physical) advertising in this increasingly digital market. Additionally costs of print/production and the big cost associated with unique by hand distribution model weigh heavily on the balance sheet.

Credit To Metro CEO Per Mikeal Jensen who continues to rationalise and consolidate which is exactly the strategy in these challenging times. He has got the focus, energy and board support necessary to realise Metros' potential to be profitable.

Handwritten Newspaper - genius

India's oldest Urdu-language daily paper, it is still being handwritten by calligraphers, as it was when founded 81 years ago.

whats going on a the New York Times Co

Breaking News - the Mexican billionaire Carlos Slim and his family have amassed a sizable 6.4% stake in the New York Times Co.

Whats this all about?

Maybe this is another example of the mega rich buying into newspapers for vanity reasons? Slim is certainly rich! In fact Forbes have him down as the richest man in the world (ahead of Gates & Buffett)and they say he worth worth $60 billion.

Somehow I doubt this is vanity. Slim is really really rich and really clever. He isnt flashy. In fact he allegedly lives rather quitely etc. More importantly he also owns most of the major media (and telecoms) in Mexico and beyond in South America.

So I suggest this is strategic.

He (like Rupert Murdoch) sees real future value in the great newspaper brands. He recognises that the NYT is a major media asset that is not only available today but at a knock down price.

The newspaper industry needs more investors like Murdoch and Slim. Men who see value in the brands and the medium and know they can run the businesses better and sustainably now and long into the future........

Happy Birthday Google - Advertiser fight back

On the 10th anniversary of Googles' launch the Association of National Advertisers sent a letter objecting to the proposed Internet search advertising partnership between Yahoo Inc and Google Inc to government regulators reviewing the deal.

Good.

The intended deal between these two giants of search isnt good news for advertisers and they should fight it hard. The alliance will see Google/Yahoo control 90% of search advertising inventory in the US..........

Call me old fashioned but 90% of the power held in only two hands isnt good for anyone (apart from those holding the power).

Its about time those holding the ad budgets began to exert some influence over digital channels as its they that fund the extraordinary growth of Google etc

September 1st - Officially the start of the autumn

Two things caught the eye over the weekend.

Firstly, consumers voting with their wallets and their feet, with Aldi reporting 44% sales growth in July, as shoppers sought out the best prices for their groceries. Aldi has featured heavily in media commentary in the last few weeks, with their limited but carefully selected product range providing significant cost savings for customers. We've commented before on their business, now it'll be interesting to see how Tesco et al respond to this new threat.

Secondly, reports in the press that Metro International may be selling or closing their US newspapers. In a previous life we were involved in the Metro New York launch, into one of the toughest markets in the World. It needed a strong digital presence to make it a success from the outset, but that wasn't a key competence of Metro back in 2004. It would be a wasted (and expensive) opportunity missed if Metro closed their US presence, so we hope PMJ can find a strategic solution to minimise the losses and build on the 4 years product and brand building.

End of the price war

From Monday the price of the weekday Times will rise by 10p to 80p, matching the Daily Telegraph, the Guardian and the Independent for the first time since the price wars that began in 1993, when Rupert Murdoch dropped its price from 45p to 30p and sent circulation soaring.

We were at News when The Times dropped its price and we played a big part in the price war. It was alot of fun and for a time price was an effective circulation builder. But its a war that should have ceased long ago. The battle now very sensibly transfers from cover price discounting to subscription discounting. A much more intelligent battle and one of course the Telegraph has a real advantage in.

Should be interesting.

Lets hope that the marketing guys wake up to the real opportunity to reward purchase loyalty not just with price discounting but with added value benefits as well. The case (as blogged here before) for loyalty programmes is growing stronger and stronger.

(bad) News Digest 28th August

Heres todays (bad) news digest from Print & Publishing sector.

Half-yearly profits tumbled 35.6% at the Independent and Independent on Sunday titles due to challenging trading conditions and poor consumer confidence, the papers' parent company said today.

The People has suspended its sports editor, Lee Horton, over alleged 'financial irregularities'

Johnston Press has said advertising revenues have slumped 21% year on year in the first seven weeks of the second half of 2008

Any good news anyone?

Clever Vending - under utilised

Electronics retailer Best Buy has installed vending machines at 8 major US airports.

It's a pilot program for the company's new Best Buy Express kiosks, which are large vending machines that carry cell phone and computer accessories, digital cameras, flash drives, MP3 players, headphones, gaming devices, travel adapters, and other items that are likely to appeal to customers on the go. Prices are similar to those in Best Buy stores.

Best Buy is targeting travellers in search of last-minute gifts, as well as those who need a replacement for a gadget or accessory they forgot to pack or lost along the way.

Ive always thought vending was under utilised. Serves as the ultimate in convenience retailing and a huge visual brand ad. This stuff is going to get really big when we can use our phones to pay (as in Japan and Finland etc)

What price loyalty in a recession?

The ongoing global financial situation continues to soak up the average consumer's spare cash, forcing people to re-assess their spending on a daily basis. I for one am bored of having to phone the bank to pre-authorise a personal loan to fill up the car with a tank of petrol before I travel on the motorway. While the media may be guilty of fanning the flames of recession talk, they certainly aren't guilty of lighting the fire in the first place.

I'm waiting for one of my favourite brands to approach loyalty smartly in these cash conscious times. I'm on databases, they have my email address, and probably my mobile number, and I'm ready and waiting for my loyalty to be rewarded. If they invest in me, then I'm happy to commit to them, there's always a good deal to be done in times like these.

However, only two brands are talking to me and trying to save me money. The Times, with their 20% off subscription offer, which is flexible, good value and promoted out of the newspaper itself, which is an industry first, and Varsity bars. Varsity bars is an odd one in this context, as it's a student focused drinks business, and my student days pre-date the internet. No matter, I signed up online to see how their CRM process worked, and to be honest, it's surprisingly good. Received an email and an SMS highlighting their special offers to save me money on beer this week. They are talking to me, and if I was a student right now, I'd be listening.

Those who know us, will recognise that we are passionate about loyalty. Identify your best customers and prospects so you can communicate with them on as near an individual basis as possible, then recognise and reward their loyalty. It's a long term game, but an ultimately profitable one. Get it right, then it can securitise a business in the medium to long term. And therein lies the challenge. The average tenure of a marketing director is apparently under three years in the UK. Successful loyalty programmes need time to develop, implement and nurture. They grow over time, but are not a short term fix, they need investment, resource and expertise to get them off the ground in a smart and successful manner. Like children, they need nurturing, attention and money.

Our view, the time is right now for successful loyalty schemes to take root, when consumers want to be recognised and rewarded. Question is, who is going to take the plunge and back a medium-term investment rather than a short term fix? Time will tell.

Is this the way its going for news?

This is powerful stuff (thanks to guardian.co.uk). Pew is the best and most credible of all US media usage surveys so we have to listen

Pew report: New breed of 'net newsers' shape US media habits

A new generation of well-educated, technically-savvy young web users are shaping the media habits of the US, with one in 20 Americans saying they do not watch TV on a typical day and a sharp decline in newspaper readership, according to new research.

The biennial Pew Research Center report on changing news audiences described 13% of the US public as "net newsers" - web users under 35 who read more political blogs than watch national news coverage, rely heavily on web-based news during the day and have a strong interest in technology and technology news.

Yahoo, MSN and CNN were the three most popular web news destinations, though users gave many of the leading mainstream media websites low credibility ratings.

Just 6% said the Huffington Post was very highly credible and 13% said the same of Google News, which aggregates news from mainstream news organisations.

Net newsers are typically affluent and 80% are graduates, making them a highly desirable demographic for advertisers.

They do favour some traditional media brands, including the New Yorker, The Atlantic and the BBC, the Pew survey of 3,600 adults found. But only 47% watch TV news on an average day.

The research paints a picture of steady decline in the US newspaper industry, with the percentage of Americans who regularly read print titles falling from 58% in 1993 to 34% in 2008.

According to the long-running survey, respondents saying they listened to radio news fell from 47% to 35% over the same period. As for network TV, the national news dropped from 60% to 29% and local news from 77% to 52%.

Cable TV grew from 33% of Pew respondents saying they watched it in 2000 to 39% this year, while the number of people who turn to web news at least three days each week rose from 2% in 1996 to 37% in 2008.

"For more than a decade, the audiences for most traditional news sources have steadily declined, as the number of people getting news online has surged," said the Pew report.

"A sizable minority of Americans find themselves at the intersection of these two long-standing trends in news consumption."

However, TV is still the most popular medium for the US, with 46% of the public classified as "traditionalists" who watch throughout the day, but are likely to be older and less well educated than net newsers.

More than 40% of this traditionalist group are unemployed, and were found to prefer visual news stories to audio and have little interest in science or technology news.

A further 14% are described as "disengaged", a poorly-educated group with little interest in current affairs.

Pew's research identified a further 23% of US media consumers as "integrators", an older group who are affluent and influential but still rely mostly on TV news and are interested in politics.

The research also found that the proportion of young people in the US getting no daily news has increased from 25% in 1998 to 34%, with only 10% of people using social networking sites for their news

Associated CD's Mcflying into the Bermuda Triangle?

A quick thought on the newspaper ABCs for July 2008. Apart from The Sun and The Sunday Times showing increases month-on-month thanks to some effective marketing, the numbers for the Mail on Sunday are most interesting.

Month on month the MoS remained level, but the year-on-year comparison makes more interesting reading, down almost 5%. This is despite heavily backed McFly and Barry Manilow CD giveaways, which would have been expected to perform well in a normally quiet month.

What to make of this? Is Barry no longer the hearthrob of the middle England twinset? Would McFly have flown better off the shelves or digital music racks than they did off the news-stand?

Either way, our view has been for a while that the free CD or DVD should be the last resort rather than the regular fare of a forward thinking marketing professional. Anyone can give something away and see a short term uplift. Very few can build sustained growth in a shrinking print market.

While The Sun and The Sunday Times are investing for future sustainable growth, what next at Associated newspapers, who have an equally might marketing war chest? We wait with interest to see some innovation in their marketing approach.

Pot Noodle: the musical - Does exactly what it says on the pot

"Pot Noodle: the musical" is being heralded as being at "the vanguard of a revolution which could transform advertising and possibly the entertainment industry over the next few years". A big claim for a play based on the students' favourite freeze dried convenience snack.

Mother has developed the concept in its "content" department to break away from the traditional advertising "product" and PN:tm is currently playing to standing ovations on the Edinburgh fringe. The result, and I quote directly from The Times, is "a riotous hour's entertainment set in a Pot Noodle factory and very very loosely based on Hamlet".

Given that the Mamma Mia film has seen the Abba Gold album rocket back to the charts for the first time in 15 years, will this alternative approach to advertising PN see the familiar plastic pot leap off the shelves of Aldi's across the country?

Either way, we applaud the vision, and the commitment to trying new ways of advertising product to audiences. The world is changing, and brands with the courage to test new routes to market now will in our view be hugely rewarded in the longer term. Put the kettle on, it's noodle time......