Losing Ads to Net Is a Top Concern
Moseley, Bob, Folio: the Magazine for Magazine Management
PUBLISHERS EXPECT TO LOSE READER ATTENTION, STAFF AND MARKETSHARE TO ONLINE MEDIA THIS YEAR, A READER POLL INDICATES
Publishers believe that ad sales will grow moderately this year, but also fear that the Internet will continue to gain advertising marketshare, according to a FOLIO:-commissioned survey. Asked which trends and dynamics would be most likely to affect the publishing industry in 2000, respondents named the Internet and circulation economics as their principal concerns, and noted that e-commerce is of particular interest.
For instance, Tom Potratz, publisher of Discover, says that while e-commerce has positive and negative implications for publishers, the bigger concern is, "Who is going to be left standing when it all shakes out?"
Meanwhile, publishers blame the Internet for the ongoing talent crunch and believe that the migration of their top staffers to dot.com companies will continue. "It's clearly a time when human resources are driving companies, and it's affecting the way you manage," says Tom Florio, publisher of GQ. "I spend a lot of time making sure my staff is happy and feeling challenged. The industry is losing lot of talented people to the Internet," he says. "Long-term, that will affect magazines the most."
The good news is most publishers polled by FOLIO: believe that ad sales will grow in 2000. Cyndi Stivers, president and editor in chief of Time Out New York, says the key to continued growth is a broad advertising base. "We feel diversified enough so if there's a hiccup in the ad market, it won't hurt us," she says.
What are the top issues facing the industry for the year 2000? Internet's growth in gaining advertising marketshare 55.3% Circulation economics 42.1% Shifting labor market, including people moving to dot.com companies 18.4% Industry stratification brought on by consolidation 21.1% Other (write-ins) 21.1%
Respondents say other concerns include the Internet's challenge to intellectual property, its ability to steal readers' time and attention, and the Internet's growth as a content provider.
Respondents also note that it is imperative for the magazine industry to reinvent the circulation model, extend the core of the magazine business into multiple revenue streams, and aggressively reduce cost structure.
How much of your readers' time do you believe your magazine is losing to the Internet? …