TOBY SMEETON, MANAGING DIRECTOR, SUNDAY PUBLISHING
With even a wafer-thin understanding of business principles, it is not hard to work out that a customer title, like any other marketing medium, should be profitable.
The key is to implement a clear measurement programme, identifying the return on investment not only from increased sales and retention, but also from brand awareness, affinity and advocacy.
If the audience is unique and big enough to lure advertisers, it can make a significant difference to profitability, but clients can end up compromising the key marketing focus to attract maximum advertising or cover revenues; rather than using the medium as a profitable channel, brands inadvertently end up as media owners.
JULIA HUTCHISON, CHIEF OPERATING OFFICER, APA
Customer publishing should be profitable for organisations in every circumstance, whether paid-for or not. This is evident if we look at recent successes such as Sainsbury's, which is paid for, or the new free ASOS magazine.
The reason is that customer magazines fulfil a range of marketing objectives that other media can't. These objectives deliver tangible benifits.
Our research found that customer titles can increase brands' share of wallet by 8%, as well as allowing them to have more profitable conversations with customers by increasing brand loyalty and improving brand image. In fact, 44% of readers interact with a brand as a direct result of receiving a customer magazine.
JULIE WILLIAMS, DIRECTOR, BBC CUSTOMER PUBLISHING
Profitability can be measured in a variety of ways and clients should be clear about how they are going to measure this through their magazine.
We know that our clients can see a correlation between their customer magazine and sales uplift. Customer titles work when both the client and agency have an intuitive understanding of their customers, what they want and when they want it.
A profitable magazine is an integral part of the overall marketing and promotional activity of the company and, as such, can in many instances more than recoup the cost. And this is all in addition to the value of a medium that is proven to engage with customers over an extended period.
NICOLA MURPHY, MANAGING DIRECTOR, RIVER PUBLISHING
There are several ways in which customer magazines can be profitable. The first is the marketing reasons for producing the title. In a retail environment, this is showcasing products to encourage trial and sales, and to inspire loyalty.
The more commercial way in which a customer magazine can be profitable is from the ad revenue it brings in. But it also depends on the sector. Retailers have the benefit of distribution. They don't end up giving away 50% of the cover price to shops or distributors, which you end up doing if you stick your magazine in WH Smith.
In the end, a good magazine will sell if pitched to the right audience. Publishers don't do things for nothing.
- Marketing Society members can contribute to Forums by emailing jemima.bokaie@haymarket.com.