Consumer Marketing Survey
Subscription Sales on the Internet
and Digital Developments Study
2010 Actual
2011 Forecast
August, 2011
Consumer Marketing – Print and Digital Subscription Sales
The Association of Magazine Media distributed the survey in April 2011 with responses received from 20 companies reflecting the
experiences of 104 titles (Outliers on some statistics were removed). Not all titles provided information for all questions. 2010
information is based on final results. 2011estimates are based on four months of actual results.
Participating Titles
All You
Food & Wine
Motorcycle Classics
Runner's World
American Cowboy
Food Network
Muscle & Fitness
Scientific American
Arts And Crafts Homes
Forbes
Muscle & Fitness Hers
Scientific American Mind
Backpacker
Fortune
National Enquirer
Seventeen
Better Homes And Gardens ®
Gas Engine Magazine
National Geographic Kids
Shape
Black Belt
Glamour
National Geographic Little Kids
Bloomberg Businessweek
Globe
National Geographic Magazine
Si Kids
Southern Living
Capper's
Golf
National Geographic Traveler
Spin To Win Rodeo
Climbing Magazine
Good Housekeeping
Natural Health
Sports Illustrated
Coastal Living
Cooking Light
Gq
Natural Home & Garden
Star
Grit
New York Magazine
Sunset
Cosmopolitan
Guideposts
Newsweek Magazine
The Herb Companion
Country Living
Harper's Bazaar
Old House Interiors
The New Yorker
Country Weekly
Health
Old House Journal
The Trail Rider
Country's Best Cabins
Horse & Rider
Oprah
This Old House
Dressage Today
Horse Journal
Parents
Timber Home Living
Dwell
House Beautiful
Time
Entertainment Weekly
Instyle
Equus
Ladies Home Journal
People
People En Espanol
People Stylewatch
Esquire
Log Home Living
Popular Mechanics
Urban Climbing Magazine
Essence
Marie Claire
Popular Science
Utne Reader
Family Circle ® Magazine
Men's Fitness
Practical Horseman
Vegetarian Times
Farm Collector
Men's Health
Prevention
Veranda
Fit Pregnancy
Money
Reader's Digest
Vogue
Fitness Magazine
More Magazine
Real Simple
Women's Health
Flex
Mother Earth News
Redbook
Yoga Journal
2
Town & Country
Travel + Leisure
Internet subscriptions represent one out of every five direct to publisher new
business sales
•
•
•
•
•
Internet sold orders were 12% of total gross orders sold in 2010 and are forecasted remain flat in
2011
By title, internet sold orders ranged from 1% to 50% of total orders in 2010; from 1% to 44% in 2011
Internet sold DTP new business orders were 20% of all DTP new business and are estimated to be
21% in 2011
By title, DTP new business orders sold online ranged from 3% to 67% in 2010 ; from 2% to 68% in
2011
5% of all renewals sold were sold on the internet
ACTUAL 2010
Orders (000s)
Gross
Internet
Sold
New Business DTP
7,701
20%
30,594
80%
38,295
100%
8,174
21%
30,759
Renewals DTP
1,594
5%
32,020
95%
33,614
100%
1,636
5%
Total DTP
9,295
13%
62,613
87%
71,909
100%
9,810
Agents
3,744
11%
29,523
89%
33,266
100%
Grand Totals
13,039
12%
92,136
88%
105,175
100%
% of
Row
Gross
Off-line
Sold
ESTIMATE 2011
% of
Row
3
Total
%
Total
Gross
Internet
Sold
% of
Row
Gross
Off-line
Sold
% of
Row
Total
%
Total
79%
38,933
100%
31,730
95%
33,366
100%
14%
62,490
86%
72,299
100%
3,379
10%
30,602
90%
33,980
100%
13,188
12%
93,091
88%
106,280
100%
The internet has become the largest source of new business subscriptions for 20% of
titles
Largest New Biz Source
Internet:
*Offline Source:
% of Titles
19%
81%
* Non-internet related
DTP sold internet orders are expected to grow 6% in 2011
•
•
•
•
Growth in DTP volume offsets 10% reduction in internet agent sold subs
DTP new business sales accounted for 59% of internet activity last year & growing 6% in 2011
Internet renewal subs are 12% of internet sold in both 2010 &2011
Agent orders represented 29% of internet orders in 2010 & is estimated to be 26% this year
INTERNET SOLD
Orders (000’s)
New Business DTP
Renewals DTP
Total DTP
2010
7,701
59%
1,594
12%
9,295
71%
Est. 2011
8,174
62%
1,636
12%
9,810
74%
Agents
3,744
29%
3,379
26%
(365)
Grand Totals
13,039
100%
13,188
100%
149
4
+/( - )
473
41
514
% Change
6%
3%
6%
-10%
1%
New business online orders really are new
•
•
As the internet has matured as a source of subs, the % new orders has come more into line with
other sources like agents or insert cards
By title, the range of underlying renewals was 0-48%
% New
88%*
87%*
Actual 2010:
Estimated 2011:
*Outlier titles removed
Internet new business orders are primarily sold on publisher websites
•
•
•
•
•
Publishers have focused extensively on internet sales from their own web pages: in 2010 52% of
internet new business orders came from editorial sites, slightly decreasing to 49% this year
Email subscriptions from internal and external lists generate 14% growing to 17% of new business
orders
Internal cross-sells and upsells are estimated to fall from 15% of production to 12%
Search engine marketing is growing rapidly from 7% of subs in 2010 to 10% in 2011
Third party sites and affiliates represent 2% of subscription sales as does Co-Registration
Internet DTP New Business Orders
New Business
Orders (000’s)
Editorial websites
Email - internal lists
Email - external third party lists
Other internal - cross selling, upsells and offline to
online
Other direct to publisher third parties (i.e.
partnerships/affiliates)
Search Engine Marketing
Co-Registration
Other DTP
Total
5
2010
+/(-)
(19)
260
48
%
Change
0%
25%
78%
3,997
1,025
62
52%
13%
1%
2011
3,977
49%
1,284
16%
110
1%
1,134
15%
1,002
12%
(132)
-12%
184
523
137
640
2%
7%
2%
8%
190
847
49
715
2%
10%
1%
9%
6
324
(88)
75
3%
62%
-64%
12%
7,701
100%
8,174
100%
473
6%
Amazon and Magazines.com are the major internet agent sources despite reductions
in usage
• Amazon is forecasted to lose almost twice the volume as Magazines.com from 2010 to 2011
•
The two largest agents are expected to produce near to identical volumes in 2011
Internet Agent New Business Orders
New Business
Orders (000’s)
Amazon
Magazines.com
Other Agents
906
753
2,064
24%
20%
55%
637
617
2,105
Total
3,723
100%
3,358
2010
19%
18%
63%
+/(-)
(269)
(136)
40
%
Change
-30%
-18%
2%
100%
(364)
-10%
2011
The mix of on-line renewal channels is expected to remain stable
•
•
•
By title the mix of renewal sources ranged from 0-100% website sold
Email also ranges from 0-100% of the orders by title
Other sources account for as much as 84% of the orders by title
Internet Renewal Orders
Renewal
Orders
Editorial websites
Email
Other
2010
44%
38%
18%
2011
43%
38%
19%
Total
100%
100%
%
Change
-2%
0%
4%
6
New business pay up rates are increasing across virtually all internet sources
•
•
•
•
Only Other DTP third party efforts are estimated to have lower payment in 2011
Titles’ own efforts – cross-sells and search engine marketing are the best paying DTP sources
Third party email list and Other DTP third parties are the worst paying sources.
Magazines.com and other agent payment has improved about 10 points
Internet New Business Pay up Rates*
2010
Editorial websites
Email - internal lists
Email - external third party
lists
Other internal - cross selling,
upsells and offline to online
Other direct to publisher third
parties (i.e.
partnerships/affiliates)
Search Engine Marketing
Co-Registration
Other DTP
Amazon
Magazines.com
Other Agents
Total
2011
Gross
3,997
1,024
Net
2,261
591
Pay up
%
57%
58%
61
17
28%
73
23
32%
1,133
761
67%
621
441
71%
184
523
137
638
865
715
1,808
11,085
119
348
31
546
850
563
1,391
7,479
65%
67%
23%
86%
98%
79%
77%
67%
125
559
32
468
611
588
1,896
8,449
58
379
9
402
598
515
1,700
6,399
46%
68%
29%
86%
98%
88%
90%
76%
*Volumes reflect only titles that reported payment
7
Gross
2,627
848
Net
1,728
547
Pay up
%
66%
65%
40% of the responding titles are using social media as a subscription source.
•
•
2011 will be the first year with significant gross sub volumes
The number of titles reporting social media sub sales in 2011 increased by 56% versus 2010
Social Media as a Subscription Source
Social Media as a
Subscription Source
% Titles using Soc. Media
Act 2010 Gross Subs sold
Est 2011 Gross Subs Sold
% Growth 2011 vs 2010
2011
Survey
39%
16
148
925%
Facebook and Twitter are used by the most titles but Deal of the Day sites are growing
•
•
Deal of the Day sites came into broad usage in 2011 with 37% of respondents using at least one
Other Social Media used include YouTube and Group Commerce
Social Media Outlets Used
% of Responding Titles Using
Social Media Outlets
Facebook
Twitter
Groupon
Living Social
Other Deal of the Day sites
Other Social Media
8
2010
44%
33%
4%
1%
5%
1%
2011
55%
44%
33%
31%
19%
3%
Three quarters of the titles are offering Digital Editions in 2011
•
•
In 2010 more than half offered digital editions for both subscriptions and single copy sales
Three quarters of the respondents will have digital editions in 2011
Use of Digital Editions
Digital Editions
% selling subs
% selling single copies
2010
60%
60%
2011
77%
74%
% Change
27%
24%
Titles are offering subscriptions to digital editions through multiple channels
•
•
Apple has shown the most growth in 2011 due to the introduction of subscription sales on the iPad
Many titles listed other channels including Nook, Kindle and HP
Subscription Channels for Digital Editions
% of Responding Titles Using
Channel to Sell Subs
Zinio
Texterity
Apple
Android
Blackberry
Nook
Kobo
Other
9
2010
45%
9%
6%
3%
1%
NA
1%
14%
2011
56%
5%
22%
13%
10%
26%
7%
41%
Zinio and Apple are the channels used by most titles for single copy sales
•
•
Most channels are growing significantly in single copy sale usage
Other channels mentioned are Nook, Kindle and HP
Single Copy Channels for Digital Editions
% of Responding Titles Using
Channel to Sell Single Copies 2010*
38%
Zinio
9%
Texterity
15%
Apple
3%
Android
1%
Blackberry
NA
Nook
0%
Kobo
14%
Other
*Titles can use multiple channels
2011*
55%
4%
27%
7%
4%
25%
2%
34%
Use of both replica and enhanced digital editions is growing
•
•
•
In 2010 61% of titles offered replica editions, in 2011 76% produce them
Enhanced editions were sold by 20% in 2010 increasing to 34% in 2011
Over a third of respondents had digital editions that were neither replicas or enhanced in 2010
Types of Digital Editions Offered
% of Responding Titles Using
Channel to Sell Single Copies
Replica Edition
Enhanced Edition
Both Replica and Enhanced
None of the above
10
2010
46%
5%
15%
34%
2011
48%
6%
28%
18%
Consumer marketing has complete or partial responsibility for audience development
at a majority of surveyed titles.
•
•
70% are completely or partially responsible for generating and/ or tracking web traffic
Responsibility is shared at the majority of titles
Circulation Responsibility
for Audience
Completely responsible:
Partially responsible:
Not at all responsible:
2011 Survey
%
7%
63%
30%
Website Traffic is growing 8%
•
•
Almost 160 million monthly uniques came to respondents’ websites in 2010
On average about 2 million visited each title’s site monthly
Monthly Unique Visitors
Avg. Visitors
Total Visitors
2010
1,942,505
161,805,774
11
2011
2,104,504
175,198,809
% Change
8%
8%
Survey Summary
• Internet subscriptions represent one out of every five direct to publisher new business
sales
• The internet has become the largest source of new business subscriptions for 20% of
titles
• DTP sold internet orders are expected to grow 6% in 2011 and Agent sold internet
orders decline by 10%
• New business pay up rates are increasing across virtually all internet sources
• 40% of the responding titles are using social media as a subscription source
• Facebook and Twitter are used by the most titles but Deal of the Day sites are growing
• Three quarters of the titles are offering Digital Editions in 2011
• Zinio and Apple are the channels used by most titles for single copy sales
• Use of both replica and enhanced digital editions is growing with ¾ having replicas and
over a third having enhanced editions in 2011
• Titles are offering subscriptions to digital editions through multiple channels with Zinio,
Apple and Nook used by most
• Consumer marketing has complete or partial responsibility for audience development
at 70% of surveyed titles
• Website Traffic is growing 8% despite all the digital edition activity
12