This document summarizes key points from a presentation on innovating magazines for the digital age. It discusses how publishers must reinvent stories for new platforms like tablets by considering the different strengths of each medium. Publishers need to embrace opportunities like social media, apps, video and paid subscriptions. New skills like development are needed. While print still has value, publishers must find scarcity online to charge for unique, high-quality content and experiences not available elsewhere.

1. www.innovation-mediaconsulting.com

2. INNOVATION MEDIA CONSULTING WORLD LEADERS IN HELPING PUBLISHERS RE-INVENT THEIR TITLES FOR THE DIGITAL AGE DESIGN + CONSULTANCY INNOVATION INNOVATION

3. ‘ GOOD JOURNALISM IS GOOD BUSINESS’ INNOVATION

4. 1. HOW TO PROFIT FROM SOCIAL MEDIA 2. WHERE IS THE MONEY IN THE DIGITAL AGE? 3. HOW DO WE GROW THE PRINT MAGAZINE 4. ARE APPS OUR SALVATION? INNOVATION INNOVATION

7. INNOVATION

9. iPad IS THE GREATEST PLATFORM INNOVATION SINCE GUTHENBERG - LACK OF INNOVATION FROM PUBLISHERS INNOVATION

10. RATING IPad Apps 2.2 Magazines (Source App Store) GQ Magazine Vanity Fair National Geographic Paris Match Der Spiegel L’express Wired Time Magazine Newsweek The New Yorker INNOVATION INNOVATION

11. AVERAGE RATING 2.5 IPad Newspapers (Source App Store) USA Today Die Welt De Standaard The New York Times Financial Times New Zealand Herald Evening Standard Le Monde Corriere della sera INNOVATION INNOVATION

16. YOU CANNOT POUR OLD WINE INTO NEW BOTTLES INNOVATION

17. WE HAVE TO REINVENT THE WAY WE TELL STORIES IT'S THE JOURNALISM NOT THE PLATFORM INNOVATION

18. NEW GRAMMAR FOR NEW MEDIUM INNOVATION

19. STORIES YOU CAN READ WATCH AND TOUCH INNOVATION

20. DESIGN FOR EYES AND FINGERS INNOVATION

21. EXPERIENCE MORE IMPORTANT THAN BRAND INNOVATION

22. THE iPad as PDF? INNOVATION

23. THE iPad as A MAGAZINE ON STEROIDS? INNOVATION

24. THE iPad as SHOVELWARE? INNOVATION

25. MORE PRINTY LESS WEBBY NEITHER PRINTY OR WEBBY INNOVATION

26. IT'S AN APP! INNOVATION

27. WE NEED MORE DEMOS AND LESS MEMOS INNOVATION

28. DIFFERENT CONTENT FOR DIFFERENT PLATFORMS PAPER - LONG NARRATIVE TABLET - DEPTH AND EXPERIENCE MOBILE - INSTANT NEWS INTERNET - BREAKING NEWS, BROWSING, ARCHIVES, AGGREGATING, HYPERLINKING... INNOVATION

29. THE iPad as Infographics Unique Video Slideshows Caricatures/Art INNOVATION

30. ONE MAG MANY APPS INNOVATION

31. WE MUST UNBUNDLE THE BUNDLE INNOVATION

32. DISAGREGGATE 3 STRANDS INFORMATION SERVICES ISSUES AND PASSIONS INNOVATION

33. TABLETS AS PREMIUM INNOVATION

34. iPad means iPay INNOVATION

35. FREE is very EXPENSIVE INNOVATION

36. PRODUCE MORE FOR THOSE WHO PAY AND LESS FOR THOSE WHO DO NOT PAY INNOVATION

37. SINGLE ISSUE SALES DO NOT WORK SUBSCRIPTION IS THE WAY INNOVATION INNOVATION

38. WE ARE MOVING TOWARDS AN APP-BASED WORLD WHETHER IT BE TABLETS OR MOBILE – WHICH RIGHT NOW HAS A MUCH BIGGER POTENTIAL INNOVATION INNOVATION

39. INDIA 2007 INNOVATION INNOVATION

40. INDIA 2009 INNOVATION INNOVATION

41. INDIA TODAY INNOVATION INNOVATION

42. 48 Innovations in Magazines World Report 2011 THE INNOVATION : • Personalizing your digital information feed in a magazine format on a tablet • Taking your social media feed and blending it with a news feed and slick pics WHAT WE THINK • Flipboard and then Zite beat us to the punch. • Simplifying and aggregating our daily information flow is a priceless service, AND it’s done elegantly, easily for the user INNOVATION

43. 22 Innovations in Magazines World Report 2011 THE INNOVATION : • Connecting with readers at the precise moment when they need information in a particular location • Hooking up with high-profile tech leaders to expand brand awareness THE INNOVATION : Bon Appetit, Good magazine, New York, Advertising Week, Vogue, People all have tens of thousands of followers they wouldn’t have

44. 23 Innovations in Magazines World Report 2011 WHAT WE THINK : Very simply, we need LOTS of platforms to leverage our content and reach our readers when THEY want us to reach them, not the other way around! INNOVATION

45. 26 Innovations in Magazines World Report 2011 THE INNOVATION : • Building (and selling) social games around your core content • Elsevier created “Top Doc” medical diagnosis game • National Geographic : “Herod’s Tomb,” “Rain Forests” WHAT WE THINK : • Casual gaming is exploding (200 million users play monthly). They are yet another audience • Casual games deliver content, reach a wider, younger, more female audience, and are very addictive INNOVATION

46. 25 Innovations in Magazines World Report 2011 THE INNOVATION : • Selling subscriptions via mobile devices • Selling “snack-sized” magazines for mobile consumption WHAT WE THINK : • More and more consumers are living on their mobile devices • This is another example of going where the audience is INNOVATION

47. 30 Innovations in Magazines World Report 2011 THE INNOVATION : • Offer fun, valuable, unique content instantly via mobile phones • Make print pages come alive in creative ways • Let’s try it right now

48. 31 Innovations in Magazines World Report 2011 WHAT WE THINK : • Augmented reality (AR) like 3D is fun ... but to what end? Is it worth the investment? • QR codes or 2D tags deliver useful content instantly on a increasingly ubiquitous platform. A no-brainer. INNOVATION

49. 40 Innovations in Magazines World Report 2011 THE INNOVATION : • The year 2010 was a banner year for 3D covers • From glasses to augmented reality 3D covers and spreads, magazines pulled out the stops

50. 41 Innovations in Magazines World Report 2011 WHAT WE THINK: • 3D is not a gimmick; it drives sales and boosts brand awareness, but it’s a once a year type of tactic • “ What would people most like to see in 3D? Probably a naked lady” — Playboy Founder Hugh Hefner INNOVATION

51. 42 Innovations in Magazines World Report 2011 WHAT WE THINK: • 3D combined with Augmented Reality can be a lot of fun and generate a lot of buzz INNOVATION

52. INNOVATION INNOVATION

53. JOURNALISTS SHOULD SPEND 10% OF THEIR TIME ON SOCIAL MEDIA VG NORWAY & OTHERS

54. 16 Innovations in Magazines World Report 2011 THE INNOVATIONS: • Every staffer must blog • High-quality outside bloggers are integrated • Advertisers are invited to publish content and “join the conversation with readers”

55. 17 Innovations in Magazines World Report 2011 WHAT WE THINK: • Staff blogs increase staffers’ connections with readers • Outside blogs increase breadth, depth of content • Advertiser blogs create relationships w/audience INNOVATION

57. 19 Innovations in Magazines World Report 2011 THE INNOVATION : • Reader-generated content • More magazines integrating it • Some 100% RGC issues • olive in UK: 13% sales jump

58. 20 Innovations in Magazines World Report 2011 WHAT WE THINK : • RGC is absolutely essential • YOU can no longer create all the “answers” to readers information needs in your niche • RGC increases relevance, reach, readership, revenue INNOVATION

59. 21 Innovations in Magazines World Report 2011 WHAT WE THINK : • Let’s see: Sell subs on platform w/600 million members • Keep ALL subscribers information • What’s NOT to like? • Social coupon services exploding & are another platform for us INNOVATION THE INNOVATION: • Selling subs on Facebook (where readers spend 1/3 of their online time • Offer stories on Facebook w/ads and subscription options • Use social coupon services like GroupOn for sub discounts

60. DIGITAL FIRST , YES. BUT DIGITAL ONLY IS NOT ENOUGH

61. FROM THE DIGITAL TO THE PHYSICAL WORLD FROM DIGITS BACK TO ATOMS

62. THE LONELIEST GENERATION OF CONSUMERS - UNILEVER EXECUTIVE

63. 36 THE INNOVATION : • Taking successful web-only sites into print • Determining what works on web and what works on paper

64. 37 WHAT WE THINK: • A vote of confidence in our historical platform! • “ If you enjoy reading, or if you love to be stimulated by great visuals, or if you are looking to be surprised, then print can still win” — Future Publishing Publisher Nick Merritt INNOVATION

65. THE PAPER OF THE 21ST CENTURY? INNOVATION

66. TABLETS OR PAPER? NO TABLETS AND PAPER INNOVATION

67. PRINT IS ALIVE AND WELL AND WILL REMAIN A PROFITABLE OPTION FOR DECADES – BUT NOT AS WE KNOW IT

68. Paper as PREMIUM Haute Couture Online and Mobile as MASS MEDIUM Pret a Porter INNOVATION INNOVATION

69. Less Circulation + Revenue CHARGE MORE 1X5 MULTIPLE INNOVATION

70. 46 INNOVATION : • Identifying a brand with a global cause that resonates with readers: World Kindness Day • Partnering with corporate and media partners WHAT WE THINK: • It works: Website traffic doubled; ad revenue increased 25%; newsstand sales went up 15% INNOVATION

71. EDITORIAL AND BUSINESS INTEGRATION IS ESSENTIAL TO COMPETE IN THE DIGITAL AGE – COOPERATION IS NOT INTEGRATION

72. YOU CANNOT EXPECT DIFFERENT RESULTS BY DOING THINGS THE SAME OLD WAY INNOVATION

73. 44 THE INNOVATION: • Among many other industry leading innovations, Entertainment Weekly has led the way in creating a 24-7 content flow for their readers

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77. PAPER VERSUS ONLINE – IT’S A FALSE DICHOTOMY INNOVATION

78. NEWSROOMS IN A PERMANENT STATE OF BETA INNOVATION

79. WE NEED MANY, MANY DEVELOPERS IN-HOUSE AND OUTSOURCED INNOVATION

80. 1 DEVELOPER FOR EVERY 5 JOURNALISTS - BENCHMARK INNOVATION

81. INNOVATION INNOVATION

82. ONE DIGITAL KITCHEN MANY DIFFERENT RESTAURANTS

83. AUTHOR ONCE PUBLISH EVERYWHERE

84. THE NEW HOLY TRINITY: JOURNALIST + DESIGNER + DEVELOPER WORKING TOGETHER

85. Tablet & Mobile Workflow INNOVATION

86. WHERE’S THE MONEY? INNOVATION

87. 4 MAIN DRIVERS OF DIGITAL REVENUES INNOVATION

88. 3 WE DO NOT KNOW OR UNDERSTAND INNOVATION

89. E- COMMERCE SOCIAL CONTEXTUAL ADS AND COUPONS LEAD GENERATION INNOVATION

90. 1 WE THINK WE KNOW AND UNDERSTAND SUBSCRIPTIONS & SINGLE ISSUE COPY SALES INNOVATION

91. 35 THE INNOVATION : • Enable purchases from your Facebook, website or app pages • Use existing content to inform readers’ purchasing decisions • Increase revenue via % of sale WHAT WE THINK : • If our goal is to be essential in our readers’ lives, enabling informed purchases meets that mission • Offer complete shopping experience. Why send them elsewhere? • Make more money? Duh! INNOVATION

92. 32 THE INNOVATION : • UK’s Emap — From free to paid: 20% increase in subs; 5% renewal hike; increased ad revenue • Charge for unique content available nowhere else • Create new pay-for products, like webinars, e-learning modules, special publications

93. 33 WHAT WE THINK : • Produce more for those who pay than for those who don’t • No extra value having exactly same pub on app as you already have in print or online • Create completely different but complementary content INNOVATION

94. TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT?

95. TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT? THAT IS NOT THE QUESTION

96. TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT? THAT IS NOT THE QUESTION THE QUESTION IS, WHAT CAN WE CHARGE FOR?

97. “ The internet replaced the economics of scarcity with economics of abundance and all of us are dealing with the consequences of that.” Eric Schmidt, Google – Eric Schmidt, CEO and Chairman, Google Inc.

98. ECONOMICS 101 "... (Economics is) the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses." – Lionel Robbins, 1932 Scarcity means that available resources are insufficient to satisfy all wants and needs. Absent of scarcity and alternative uses of available resources there is no economic problem. Wikipedia-Economics

99. PEOPLE WILL NOT PAY FOR USEFULNESS, RELEVANCE, VALUE

100. PEOPLE WILL CONSUME WHAT IS USEFUL, RELEVANT, VALUABLE… … BUT WON’T NECESSARILY PAY FOR IT

101. ONLY WHAT IS SCARCE CAN BE CHARGED FOR

102. WE HAVE TO FIND SCARCITY

103. GOOGLE HAS FOUND IT ON INTERNET

104. GOOGLE HAS FOUND IT ON INTERNET PROPRIETARY ALGORITHM

105. GOOGLE HAS FOUND IT ON INTERNET PROPRIETARY ALGORITHM OPPORTUNE CONTEXT

106. GOOGLE HAS FOUND IT ON INTERNET PROPRIETARY ALGORITHM OPPORTUNE CONTEXT LIMITED SEARCH TERMS

107. WHERE IS THE SCARCITY?

108. WHERE IS THE SCARCITY? UNIQUE CONTENT

109. WHERE IS THE SCARCITY? UNIQUE CONTENT UNIQUE UTILITY

110. WHERE IS THE SCARCITY? UNIQUE CONTENT UNIQUE UTILITY UNIQUE CONVENIENCE

111. WHERE IS THE SCARCITY? UNIQUE CONTENT UNIQUE UTILITY UNIQUE CONVENIENCE UNIQUE PACKAGING

112. WHERE IS THE SCARCITY? UNIQUE CONTENT UNIQUE UTILITY UNIQUE CONVENIENCE UNIQUE PACKAGING UNIQUE EXPERIENCE

113. FREEMIUM MODEL ABUNDANT CONTENT FREE SCARCE CONTENT PAY

114. INNOVATION INNOVATION

115. WHAT ABOUT ADVERTISING?

116. WHAT ABOUT ADVERTISING? OVERABUNDANCE OF BULK CONTACTS DRIVES CPM TO ZERO

117. WHAT IS POTENTIALLY SCARCE? MESSAGE RICHNESS

118. WHAT IS POTENTIALLY SCARCE? MESSAGE RICHNESS CONTEXT

119. WHAT IS POTENTIALLY SCARCE? MESSAGE RICHNESS CONTEXT AUDIENCE PROFILE

120. WHAT IS POTENTIALLY SCARCE? MESSAGE RICHNESS CONTEXT AUDIENCE PROFILE LOCATION

121. WHAT IS POTENTIALLY SCARCE? MESSAGE RICHNESS CONTEXT AUDIENCE PROFILE LOCATION INTENTION

122. WHAT IS POTENTIALLY SCARCE? MESSAGE RICHNESS CONTEXT AUDIENCE PROFILE LOCATION INTENTION FULFILMENT

123. POTENTIAL TO DELIVER OUTDOOR PRINT RADIO TV WEB MOBILE TABLET MESSAGE CONTEXT AUDIENCE PROFILE - LOCATION - - - INTENTION - - - - FULFILMENT -

124. 38 THE INNOVATION • Meredith took client from display & banner ads to multi-channel integrated marketing • Meredith produces paid magazine (1 million subscribers), weekly e-mails, recipe website, iPhone app (iFood Assistant), iPad app (Big Fork Little Fork) and branded entertainment program

125. 39 WHAT WE THINK: • Promotion in multiple channels increases the amount of purchases • Either you help your clients create integrated marketing campaigns or someone else will. INNOVATION

126. HOW DO WE FIND THE MONEY?

127. HOW TO FIND THE MONEY? FOCUS ON YOUR CLIENTS’ NEEDS…

128. HOW TO FIND THE MONEY? FOCUS ON YOUR CLIENTS’ NEEDS… …AS OPPOSED TO YOUR PRODUCTION NEEDS

129. FROM “MEDIA IN A BOX”… Editorial/ Programming Finance Admin HR IT Legal TV Production Marketing Ad Sales Editorial Printing Circulation Ad Sales Editorial Printing Circulation Ad Sales Newspaper Magazine Radio Editorial/ Programming Production Marketing Ad Sales MEDIA INC.

130. TO A COMMERCIAL ENGINE AUDIENCE EDITORIAL MARKET INTELLIGENCE SUPPORT FUNCTIONS BRANDS AD SALES ADVERTISER

131. WHERE IS THE MONEY?

132. WHERE IS THE MONEY? YOUR CLIENTS HAVE IT, SO…

133. WHERE IS THE MONEY? YOUR CLIENTS HAVE IT, SO… … FOCUS ON THEIR NEEDS

134. FIND YOUR SCARCITY…

135. FIND YOUR SCARCITY… … AND YOU WILL FIND THE MONEY

136. GOOD JOURNALISM IS SCARCE

137. INVEST IN QUALITY SCARCE JOURNALISM AND THE MONEY WILL COME

138. WE ARE THE WINE NOT THE BOTTLE INNOVATION

139. SIMPLICITY IS THE DRIVER OF INNOVATION Dom Sagolla, co-creator of Twitter

140. IT'S TIME TO INNOVATE

141. the end THANK YOU WWW.INNOVATION-MEDIACONSULTING.COM [email_address] TWITTER - @JUANSENOR

142. Thank you! 65 Innovations in Magazines World Report 2011 www.innovation-mediaconsulting.com