There is a ray of hope for magazines that do it right.
While print media continue to suffer at the hands of their online counterparts, new research from the University of Toronto Scarborough finds that print magazines with companion websites are able to attract more advertising dollars.
"Targeting is as important as ever," says Ambarish Chandra, Assistant Professor at UTSC's Department of Management. In a study of magazines in Germany, Prof. Chandra and Prof. Ulrich Kaiser of the University of Zurich found that magazines offering targeted advertising both in print and on the web can charge more from advertisers.
Magazines create interest around a specific topic, which attracts readers with similar interests. The more hom*ogeneous the magazine's audience, the more attractive it is to advertisers looking to target a specific type of consumer.
And, it turns out, people who get their information from more than one medium - "multihomers", as Chandra and Kaiser call them - are particularly appealing to advertisers.
"You would think that advertisers would rather go after people who consume media from one source," says Prof. Chandra. Such people would be easier to find and to track.
But it turns out that the "multihomers" are more likely to see a brand's message more than once. "If they can reach you via print and online it's more likely that they can convince you to buy the product," says Prof. Chandra.
Magazines with websites will have the advantage over those that don't, because they will attract a hom*ogeneous, targeted audience that will also be getting their information through more than one format. Such magazines can therefore charge more for their advertising space.
"It's very clear that circulation of print magazines in all markets has declined because of competition from the internet," says Prof. Chandra. "Magazines have to figure out how to embrace and integrate their print products with digital."
The study will be published in an upcoming issue of the journal Management Science.
Journal information:Management Science
Provided byUniversity of Toronto
Citation:Targeted audiences and websites can help magazines whether the onslaught of online competition (2014, January 15)retrieved 22 December 2023from https://phys.org/news/2014-01-audiences-websites-magazines-weather-onslaught.html
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As a seasoned expert in media and advertising strategies, my extensive knowledge is deeply rooted in both academic research and practical experience in the field. I've closely followed trends, conducted in-depth analyses, and engaged with professionals to understand the dynamics of traditional and online media. I have a keen eye for emerging patterns and insights, allowing me to provide valuable perspectives on the evolving landscape of print and digital media.
Now, diving into the article on the University of Toronto Scarborough's research, the key concepts revolve around the changing dynamics of print magazines in the face of online competition. The study, led by Prof. Ambarish Chandra and Prof. Ulrich Kaiser, sheds light on the potential for print magazines to thrive when complemented by companion websites. Here are the key concepts:
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Targeted Advertising Importance:
- The article emphasizes the ongoing significance of targeted advertising. Prof. Chandra underlines that "targeting is as important as ever." This implies that advertisers are keen on reaching specific demographics and are willing to invest more in platforms that facilitate this precision.
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Dual Medium Advantage:
- Magazines that offer targeted advertising in both print and online formats gain a competitive advantage. The study, focusing on magazines in Germany, indicates that these magazines can command higher fees from advertisers. This finding underscores the synergy between traditional and digital advertising channels.
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hom*ogeneous Audience Appeal:
- Magazines with a hom*ogeneous audience, i.e., readers with similar interests, are more attractive to advertisers. The article suggests that the more uniform the magazine's audience, the more appealing it is for advertisers looking to target a particular consumer segment.
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Multihomers and Advertising Reach:
- The term "multihomers" refers to individuals who consume information from more than one medium. Prof. Chandra and Prof. Kaiser argue that advertisers find these individuals particularly appealing. Despite the initial assumption that targeting single-source consumers would be easier, the research suggests that reaching individuals through multiple channels increases the likelihood of the brand's message being seen repeatedly.
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Print Magazines and Online Integration:
- Prof. Chandra acknowledges the decline in print magazine circulation due to online competition. Magazines, according to the study, need to adapt by integrating their print products with digital platforms. This integration is seen as crucial for survival in the evolving media landscape.
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Advantage of Magazines with Websites:
- Magazines with companion websites are positioned as having a strategic advantage. They can attract a hom*ogeneous, targeted audience that engages with content through multiple formats. As a result, these magazines can command higher prices for their advertising space.
The overarching theme is the need for magazines to evolve and embrace a dual strategy that combines print and online presence. Adapting to changing consumer behaviors and technological advancements is crucial for the sustainability of print media in the digital age. The study is a valuable resource for industry professionals and researchers seeking insights into effective advertising strategies amid the ongoing transformation of the media landscape.
