i decided that the timeline would focus a lot on the context of the USA as Condé Nast is an American company
How do companies finance, distribute, and exchange their products?
finance
advertising:
- magazines generate a significant portion of their revenue from advertising
- 62% of revenue is from advertising
- display advertising
. magazines sell ad space for companies to buy
. this ad space is placed alongside editorials
. companies pay premium for this space as it helps them to reach their target audience
- classified advertising
. classified ads for specific catagories are offered
. specific catagories include: business, real estate e.t.c
. fee paid for ad to appear in deignated section
- native advertising
. editorial material sponsered by an advertisor
. e.g - an editorial in Vogue about Dior's new perfume, sponsered by Dior
subscription based model:
- audience have to pay to see content by the magazine
- print subscription
. readers pay to recieve a print version of the magazine
. magazine delivered on regular basis - weekly/monthly/quarterly e.t.c
- digital subscription
. readers can access magazine digitally on their devices
. this content is not available to users who don't subscribe
- bundle deals
. combine both digital and print content
. may also include extra content
events:
- magazines may organise events for their audience
- this would generate ticket and merch sales
- would get money from sponsership
- would also generate talk about magazine and may lead to an increase in subscriptions
licensing and permissions:
- magazines may lisence their intellectual property, characters or content to other companies
- e.g filmmakers or advertisiers
recent developments in technology:
challenges
- falling circulation of print media
- increasingly competative digital advertsing - Google and Facebook dominate the market, and Google takes a lot of the profits from digital advertising on websites
- more digital content means readers have more options and are less likely to chose to be loyal to a specific magazine
adaptations the industry has made
- diversifying revenue streams
. many magazine companies generate revenue through events and audiobooks as well as advertising now
- digital expansion
. many media companies have online versions of their magazine
. invest in online content
- niche targeting
. companies focus on small communities / specific demographics / niche interests
. this helps to build a loyal community that will generate revenue needed to survive
distribution
direct distribution
- magazines are delivered straight to the reader
- this is often done through subscription or mail
- high control of distribution
- can make personalised marketing efforts
. subscriptions create a loyal fanbase
. magazines can collect data from subscribers and create personalised adverts
indirect distribution
- involves 3rd party intermediaries e.g retail outlets, bookstores, newsstands
- this gives a broader reach and increased visability
- the place of sale can be used to indicate who the target audience are
. if magazines are being sold in Selfridges then the target audience are AB
. if magazines are sold at corner shops then the target audience are C1C2DE
digital distribution
- delivery of digital media content
- many magazines have websites to digitally distribute content
- websites / an online presence can increase a magazine's visability
- also helps magazines to appeal to a younger audience
- must diversify in order to survive as print media sales and circulation are falling
exchange
- retail
- many magazines sell products via their website shops
- e.g Vogue has a Vogue Shop and a Vogue Retail page
How do audiences access magazines
- audiences can access magazine content (editorials e.t.c) through the magazine's website
. this has happened because of digital convergance
. helps magazines appeal to younger generations
- magazines can also be sold through retailers
- they can also be sold through direct mailing due to subscription models
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