This first appeared in the April issue of AdNews Magazine and is part two of the series that focuses on the positive stories of print publishers. See: Giving magazines back their gloss
The most famous magazines in the world - Elle, Vogue, Harper's Bazaar - are no longer as profitable as they once were.
Built on a model that relies on advertising and cover price revenue, with an additional cash stream coming from events, the magazine industry has struggled to compete with changing market demands and the presence of Facebook and Google.
In the new world order of publishing, content marketing agency, Medium Rare, which creates branded magazines for the likes of Foxtel, Coles, Qantas and David Jones, could hold the secret to a successful publishing model.
The Coles Magazine is the most read magazine title in Australia, with a readership of 4.1 million as of September 2017, up 26% over the past three years.
Medium Rare managing director Gerry Reynolds believes that brands are the new publishers because of their “unparalleled reach” and a deep understanding of their audiences - via databases and loyalty schemes.
He said brands getting involved in content allow them to rule the purchase funnel from inspiration to action and these attributes are attractive to advertisers who look to connect with hard–to–reach audiences.
“With Coles for example, we create content for its monthly magazine, its YouTube channel, its owned social and EDMs and, where appropriate, for its print catalogues and point of sale in association with seasonal campaigns,” Reynolds revealed.
“This approach results in enormous reach which attracts suppliers wishing to speak to the same audience.”
While Medium Rare boasts big figures, it’s commonly said that publishers don’t have a readership problem, they have a monetisation problem. But, monetisation isn’t an issue that the content marketing agency faces despite the complexities and restrictions within placing ads within branded publications.
While the potential media reach of clients’ media channels represents a huge opportunity, there are many restrictions and complexities in managing client sales not faced by traditional media.
“Despite rigid brand guidelines and limitations on which third–party brands and categories can advertise, and in a magazine advertising market that declined 20% YOY, we managed to deliver a total YOY revenue increase of 55% across our titles,” Medium Rare national advertising director Tony Trovato said.
“Our structure plays a significant role in that success. Our sales staff are dedicated to single titles and are 100% committed to understanding their individual brand’s audience, stakeholders and target advertisers.”
Medium Rare's success isn't going unnoticed. Earlier this year it was reported that News Corp was interested in increasing in its stake in joint-venture agency. It is currently run in a 50-50 joint-venture with News Corp's lifestyle arm NewsLifeMedia.
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