The Tunnel of Hard Times

Survey any magazine or catalog publisher about the business today, and one thing becomes clear: Print advertising will likely not return to the heights it saw five years ago.Therefore, many production heads spent much of 2003 and the first half of 2004 strategizing how to cut costs and run their publications more efficiently. They also sought ways to redistribute content to generate new forms of revenue.A major push in all of these directions has been in streamlining file submission from advertisers. In addition to aiming for simplified, error-free file submission to the printer, new methods simplify the process of editing and reviewing copy during production. The two file formats that have become standardized are the Portable Document Format (as in the Committee for Graphic Arts Technologies Standards' PDF/X-1a standard) and TIFF/IT.Moving to a more flexible file format does more than improve in-house efficiency. It puts publishers in a better position to distribute their content in new ways. Since early last year, publishers have been looking into selling "premier editions" of database content, turning their print magazines and catalogs into e-zines, and partnering to share content through hyperlinks."These trends stem from a continual changing of the business model, and determining how you can [become] more efficient and timely with technology,' says Linda Carvalho, VP of advertising, business and production of BusinessWeek magazine. "With the competitive landscape, not only are there a lot more magazines out there, every medium has expanded … There are so many options for people to get information, you have to decide how and in what format you can make yours available, and decide which niches can make you money."NEW STANDARDS RULEGetting into more standardized formats, Carvalho says, is a trend magazine publishing is clearly moving toward.It's not surprising that Time magazine converted to 100-percent PDF/X-1a file submission and no longer accepts any other file formats from advertisers. As the first newsmagazine to publish online 11 years ago, Time isn't one to waste time moving toward the future.BusinessWeek has also moved to PDF/X-1a. The magazine's ability to send files electronically has enabled the staff to extend its deadline for accepting ads—as late as Wednesday night in fact, where the magazine hits the newsstands on Friday. Officials from Crispin Porter & Bogusky, an advertising firm in Miami, says PDF/X-1a has huge ramifications. Julieana Stechschulte, director of print production for the firm, says that this improved workflow method speeds up the entire process of running ads. "We can literally be told of an ad and turn it around in a matter of hours," she says, because overnight shipping and copiers are no longer required.Using PDF/X-1a, the client is sent the final ad in a much smaller file through e-mail for approval; and creative directors and copy editors send the file back and forth via e-mail, even when they're out of the office.Another new trend magazine and catalog publishers, including BusinessWeek, may begin this year is extending their publications into e-zines, a format described as an exact replica of the magazine, but available online. The advantage for publishers and advertisers is that readers see the ads as they would in the print versions, and ads can be enhanced to include audio and video.BusinessWeek is a beta user for Zinio Systems Inc., San Francisco, which creates e-zines. The company has also produced e-zines for Macworld, PC Magazine and Popular Science.The move for some publishers, though, has not been so cut and dry. Top publishing officials at ST Media Group International, a Cincinnati-based publisher, say they deal with all the same production issues as Time, and then some, because they cater to smaller mom-and-pop advertising shops—some that still submit ads through non-electronic formats. Since June 2002, the publisher has been sending all its files to its printer via PDF/X-1a, but is still receiving some ads in .app files."It was a massive move, which allowed more time for our salespeople to sell," says Tricia Houston, production manager for ST Media Group, which produces five magazines. Houston views technology as the make-or-break point of magazine production. "Those who don't take advantage of the technology are going to be eliminated sooner [rather] than later." A New World of PrintST Media Group is also looking into e-zines—provided through E-Book Systems—and the possibility of providing hyperlinks to advertisers' Web sites. "Since we're already in the PDF format, we're halfway there," notes Houston.Selling content online is the Holy Grail of publishing, but observers note that not many publishers have figured out how to successfully accomplish this. U.S. News & World Report has been working with outside consultants on efforts to sell its content online to vendors and consumers. "I'm not sure print [revenues] will ever come back," says Karen Chevalier, managing editor, operations and technology for U.S. News & World Report in Washington. "We're really gearing up in a very aggressive way to sell our content online." These efforts include packaging content into a premier edition, large databases of information such as America's Best Colleges—a collection of college rankings that the magazine prides itself on.Randy Marcinko, president of Marcinko Enterprises, a consultancy that advises magazines, such as U.S. News & World Report, on how to create new products in the online field, believes this will be a major trend for magazines going forward. "The ability to take their content, convert it into an electronic format that's easily repackaged, linked and resold, is really important," he says. "Those magazines that do this are going to survive. There are some surprisingly large publishers that are behind the curve on this."Marcinko adds that most have electronic Web sites, but the real value of selling content is to put it in front of people where they are—on other Web sites, and not making people come to a particular magazine's Web site.Crucial for SurvivalExperts acknowledge this kind of creative re-inventing of the publishing industry is critical for survival, considering the current state of the print advertising market."[2003 was] the third year in a row that advertising figures have slumped," says Robert Baensch, director of New York University's Center for Publishing, who also serves on the educational committee of American Business Media."With that brutal reality, we now hear the economy is 'on the rebound,' however, magazine advertising always takes four to six months to come back after there is a solid recovery."In fact, magazine ad pages have fallen every month this year and for eleven straight months, according to the Publishers Information Bureau in New York."The latest [industry] reports are that online advertising has been outstripping the printed ad space, and the new area that will preoccupy magazine publishers is how to get the proper business model … to transition further into the online revenue model," says Vincent Naselli, director of TrendWatch Graphic Arts in New York. He adds that we're past the idea that if it's on the Internet, it's free.He also notes that catalogs will become slimmer, but more targeted toward the appropriate audience for maximum return. "The whole goal is I [as a catalog publisher] don't want to waste time with people who don't want to buy my stuff. It's too expensive to reach you," he says.Targeted catalogs have been part of Lands' End's strategy over the past year, says Frank Hill, the cataloger's director of catalog planning and production. He says he has implemented process improvements to reduce cycle times from concept to delivery of the catalog internally, much like magazine publishing has. Changes were also implemented to allow the company to re-purpose its creative assets to a number of different selling channels, including the Internet, advertising, marketing and partnerships with retailers, such as Sears."These are selling channels we've never had before, so we are very conscious of how branding is done, and we have to be more nimble,' Hill says. He adds he's still exploring ways to use new technologies to speed the production process, and he'll focus more on these next year. For example, he is using more digital photography, but is still looking into workflows that involve PDF files and digital photography that will properly convert to RGB. "The bugaboo for us is always quality." The Struggle to Stand OutWith another year of diminished print advertising combined with advertisement overload in other media, advertisers focusing on magazine publishing are looking for innovative ways to make their clients stand out.Crispin Porter & Bogusky has been focusing heavily over the past year on inserts beyond the traditional gatefold. The firm has created some sophisticated eight- to 24-page inserts for client Mini Cooper. Crispin's Stechschulte says they've pushed the envelope by adding interactive features such as stickers (so readers can design their own cars) and round wheel slide charts. "I've been in advertising for 10 years, production for five," she says, "and [at past firms] we did one insert. Over the last two years, at Crispin, I've done 20 inserts for Mini."We're inundated today by commercials. It used to be radio, TV, magazines and billboards; now we put [ads] on walls, bathrooms and coffee cups. So advertising has to break out of the norm to make an impression on a society overwhelmed by advertising," she says.Good News BrewingIt's not all grim news. One production manager at ST Media Group said that, over the past year, ads have been coming back, namely through advertisers not running ads in just one of the group's magazines, but in all five. For example, one advertiser just committed to 57 ads in the next year to run in all publications.Analysts can't make the point strong enough that magazine and catalog publishers should be checking into these trends of enhancing technology to easily move content into new areas. "You can't afford one medium for any project anymore. You have to explore multiple media to make sure you have full coverage of an audience," says TrendWatch's Naselli."On the plus side, most publishers have streamlined their business, especially on the magazine side and done a very good job. They've survived [despite] a reduction in ad page revenues," Naselli says. "They're fairly well-positioned to take advantage of the economic upswing, but they're not off the hook to get the right combo [of media]. They've made the hard choices—now if they can follow through, they should be poised to succeed."- Charlotte DunlapCharlotte Dunlap is a freelance writer specializing in high-tech and business. She can be reached at CharlotteDunlap@Yahoo.com.

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