In a previous article, "Is Print Dead?", shocking statistics eluded to the dire condition of print publications in North America. Unable to stop the massive hemorrhaging of their bottom lines, nearly 1,000 magazines folded in the past two years. Some have turned their focus to alternative publishing platforms in order to heal the gaping wounds left by a reported 20% average loss in ad revenue.
Several magazines have manged to slow the bleeding by supplementing print editorial with bonus coverage on their website. Online content is not bound by stringent page count and it provides enhanced interactivity for readers via the use of additional photos, video, and/or audio. Online content also provides a platform for readers to give instant feedback through comments, forums, or blog posts. A significant number of magazines that folded their print operations in 2009 have actually transitioned to an online-only format. Magatopia.com’s extensive list of online magazine titles is proof that publishers are finding their way to the web in large numbers.
Defunct Print Publications are Resurrecting Online
Is an online platform the future for print publications? Only time will tell, but all signs are pointing in that direction. A driving factor behind the massive shift from print to online publishing is overhead; the cost of paper, printing, and shipping is “virtually” eliminated online. Combined with enhanced user interactivity and an endless shelf life, it is hard to argue against the benefits of running a magazine online versus in print. However, there is another side to this argument.
Proponents of the traditional print publication model argue that it is more difficult to generate significant revenue online compared to print. Print display ad rates are generally determined by magazine circulation; advertisers agree to a specific term and size of their ad, and the effectiveness of the ad is measured by the amount of response it generates. On the other hand, online revenue sources are far more complex. Banner ads, the primary sources of online revenue for publications, often present technical challenges to a magazine sales staff. Page Views (PV), Impressions, Cost Per Mille (cost per thousand impressions), Image Resolution, and File Formats are just a few of the tech savvy terms associated with banner ads.
Online Banner Ads: Complex and Comprehensive at the Same Time
Banner ads are similar to print display ads in some ways, but the differences are significant. As opposed to running an ad for a specific term as with print display ads, banner ads are typically sold according to a specific number of impressions. Bnet.com has a list of in-depth articles detailing the complexity of online ad impression and how to accurately quantify them.
Even the most accomplished sales reps struggle to make advertisers understand the complicated methods involved in measuring the effectiveness of banner ads. Often desperate to meet monthly quotas, some sales reps present banner ads to advertisers as a value-added supplement to their print ads. This tactic may serve the purpose of meeting immediate revenue goals, but it can turn out to be a death sentence in the long-run.
Advertisers usually devise clever tracking systems that measure the responsiveness of their ads. If a particular advertiser recognizes a more significant response from their "value-added" banner ad than from their costly print ad, then the logical response would be to cut their print ad and devote more resources to banner ads.
It doesn't take a marketing expert to realize the danger of devaluing banner ads as a means of closing the sale on a print ad. As a result, many publications are making efforts to educate their sales staff on the intricacies of online advertising. In turn, sales reps emerge equipped with the necessary tools to help print advertisers to realize the value of advertising online.
Online Data Speaks for Itself
The compelling amount of data accumulated by online ads is a valuable resource for advertisers, but print ad sales reps must clearly convey this fact to their online clients. With print publications, there is no clear method of calculating how many people actually view a particular ad. Just because a magazine boasts a circulation of 100,000 doesn't mean that 100,000 people view every ad in the magazine. Conversely, each impression or clickthrough of a banner ad is calculated and can reveal specific consumer trends and demographic information. This fact alone has compelled many publishers to abandon their print operation all-together and migrate to an online-only format.
Did you find this article to be informative? Stay tuned in, as future articles will examine an array of technical terminology associated with online advertisements such as Unique Visitors, Inventory, Ad Rotation, Clickthrough Rate, Targeting, Rich Media and more. Feel free to voice your opinion on this matter in the form of a comment. Your feedback is welcomed.
Carlos Anderson - With over a decade of professional experience as a Graphic Designer and several years of experience as Art Director for internationally ...
