New Market Opportunities For Publishing

Magazine Publishing Personalized Advertising Program
Driving Consumer Relevance and Advertiser Value in Consumer Magazine Publishing

Michelle Weir Market Development Hewlett Packard 6/11/2012
Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Desperately Seeking Me
Fastest growing magazine segments reflect increasing demand for relevant content tailored to individual interests Publishers in position to deliver on content and promotion personalization
Fastest Growing Magazine Categories (ASME, 2010)
Rank 1 2 3 4 5 Ethnic Travel Regional Interest Medicine Real Estate Category 2000 419 669 794 959 190 2010 978 829 939 1100 324 Growth in number of titles 559 160 145 141 134
6
7 8 9 10
College Alumni
Bridal Nursing Golf Senior Citizens
442
40 130 98 105
569
150 187 140 146
127
110 57 42 41
The Fact IsMagazines Remain Relevant

More than 188 million American adults currently read print magazines.
Readership high among both men and women. (84% of women and 80% of men say they read at least one magazine title. Average US consumer reads 6.1 different print magazine titles. Median age of adult readers: 45.9
Median household income: $59.8K

3 Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice.
Source: mine Online, Magazine Readership Stay Hearty in 2010, December
As Does Magazine Advertising!
The Opportunity In the Online Paradox.

We browse online with a purpose and consciously (try to) ignore ads.
The evidence is in online ad click rates We read magazines for leisureand ads are part of the experience.
Source: CMO Council, The Impact of Relevance in Publishing and Advertising, 2010.
And In Cross-Media Consumers!

87% of those interested in reading magazines on a digital device still want a printed copy.
Source: CMO Council, 2010
75% of consumers feel that digital content complements print, yet 25% feel it replaces print.
Source: Harrrison Group/Zinio/ MEMS Technologies, 2010
25% feel digital replaces print 87% want digital + print 75% feel digital complements print
Making Print More Compelling

Would you go online for more information if the advertising in your printed subscription magazine was customized?
6%
If a magazine publisher requests information regarding your preferences and interests to help them send you more customized and relevant information, would you supply it?
37% 63%
25%
69%
Yes
7
No
Yes
Maybe
No
Source: CMO Council, The Impact of Relevance in Publishing and Advertising, 2010.
The Keys to Personalization
58% of respondents agree that ads are particularly enjoyable when related to content. 60% agree that ads allow for more detailed information.
Hearst and HP Collaboration
Popular Mechanics- October 2011
Approach
A comprehensive program to permit customized ad insertion into magazine titles based on subscriber demographics A new way to create consumer engagement An integrated approach to cross-media integrated consumer messaging

Print Online Mobile
What is involved Uses high-speed inkjet technology to produce highly-personalized ad content Matched mailing assembly or inline binding equipment used to ensure each subscriber receives the magazine with the correct advertising
10
Why Is It Important?
Helps Hearst deliver more value to advertisers through: Targeting Personalization Measurement Response actions Increases the monetary value of advertising Improves magazines competitive profile
The Enabler Convergence

Technologies Converging
Image/Code Read
High-speed inkjet web printing
Mobile Computing
12
12
The Enabler Convergence
Whats Happening:
1. Personalized content at high volume drives reader engagement/relevance 2. Image links (QR codes or image/text strings) drive to web/mobile platforms 3. Printed page becomes a portal to broader web content
13
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How Does It Work?

New York
Popular Mechanics
Atlanta Car & Driver San Francisco Cosmo Dallas Home & Gardens
Advertiser
Miami
Magazine Demographics
14
Regional Versioning
Subscriber Preferences
Personalized Editions
HP Customized Ads
15
Onsert Packaging
Magazine polybagged with onsert (Special Advertising Supplement)
New postal regulations permit onsert insertion without former surcharge
Subscriber Address inkjet imprinted onto white stripe poly Ad match to subscriber address driven by 1D barcode on back of ad Onsert placed on Cover 4 (Back Cover) of magazine with front page facing out. Addressing system permits inclusion of message on the poly in addition to subscriber address
Polybagged Onsert for Popular Mechanics
17
What Was Customized?

Image for each city (Regional) Name on mailbox Greeting above first paragraph Location of nearest store (Best Buy, Staples) Personal URL Personalized QR code
18
Connecting To Personalized Landing Page
19
HP / Popular Mechanics
Results and Analysis
Program Overview
Personalized, Regional and Directed 300,000 Personalized Onserts packaged with 12 regional editions of Popular Mechanics mailed into major metropolitan regions New York, Boston, Philadelphia, Washington (DC), Atlanta, Dallas, Detroit, Chicago, Minneapolis, Seattle, San Francisco, Los Angeles Include Personal URL and QR code interaction elements Only Geo selection for demographic targeting; no additional selects used 16 page insert with QR codes on selected content Print Onsert: 4/4 on 80# Appleton Matte Insert: 4/4 on 70# Appleton Matte Popular Mechanics November Issue (Newsstand 1st Week October)
21
HP Onsert and Insert
22
30 Day Results
Highlights
15,288 visits from 12,008 unique visitors in 28 days 10,334 unique contest entries, an 86% visitor-to-entry rate 60.7% of visits within 10 days of program start; 87% within 17 days 39% mobile participation rate All visitors monitored individually permitting comprehensive program evaluation based on underlying reader demographics 1,427 QR clicks from associated insert content links to web content
Visitor Conversion
Entered Contest Visited w/o Entry
23
Imagine the Possibilities

Rethink Direct Mail/Loyalty Marketing
Permit advertiser to reach subscriber base with pinpoint accuracy Less expensive than standalone direct mail Build on inherent value of targeted magazine audience Common cohort now sub-segments able to enhance relevance Cross-referenced database content increases targeting potential Merge advertiser data with Hearst data to augment targeting value
24
Hearst and Neiman Marcus
February 2012
Direct Marketing Comes Alive
26
The Challenge
Promote new store opening. Promote Cosmetic/Fragrance campaign. Use cross-media marketing techniques to drive recipients to website to view exclusive video, take advantage of campaign and shop. Use the info learned to measure recipients response to these promotions & tactics. Engage recipients using 1:1 marketing approach.
27
The Concept.
Using recipients mailing address target store location information w/in 50 mile radius of store throughout the US. Mailing list to be comprised of Neiman Marcus card holders and Harpers Bazaar subscribed readers. Using data filtering target more affluent readers. Use QR code to drive recipients to online video from Harpers Bazaar editor on fashion trends.
28
The Creative
Track clicks by individual, measure mobile activity, identify platform and geography information. Monitor navigation patterns and other key commerce metrics. Insure that the data collected observes rigid privacy guidelines, yet offers valuable marketing data back to retailer & publisher. Design as catalog/magazine supplement insertion to allow for easy use by both retailer & publisher mailings.
29
Tactics in design
Personalization Closest Retail Stores
30
Tactics in design
Personalization Closest Retail Stores Use of QR Code
31
Tactics in design
Personalization Closest Retail Stores Use of QR Code Readable on Smartphone & Tablet devices
32
Tactics in design
Personalization Closest Retail Stores Use of QR Code GURL web landing page
33
Tactics in design
Personalization Closest Retail Stores Use of QR Code GURL web landing page Harpers Bazaar editor fashion trends video
34
Tactics in design
Personalization Closest Retail Stores Use of QR Code GURL web landing page Harpers Bazaar editor fashion trends video Spotlighted product video
35
Tactics in design
The idea is simple ::

+ One-to-one Marketing techniques + Relevant Content/Images + Cross Media execution = Customer Engagement
36
The results
304,544 pieces were produced, this included specific solicitation of ~45,024 individuals who were active Neiman Marcus credit card holders. QR Code in 1 day had drawn 318 unique visitors (217 from an iPhone platform) Overall 69% mobile participation rate Campaign behaves like direct mail, but also has the characteristic of a magazine ad in terms of costs and awareness build 60.7% of visits within 10 days of program start; 87% within 17 days
Response metrics impacted by list demographics, offer and creative, blending character of both direct mail and advertising
Program exceed goal by $2M dollars in sales
The Lorax
Hewlett-Packard, Graphic Solutions Business, Americas HP INSPIRE
The Concept
Create a fun and interactive science-based educational program focused on sustainability aimed at the youth of the world to support the education of environmental consciousness.
Leverage the education system and specifically the relationship the teachers have with students to make this happen.
The curriculum should be customized for elementary and middle school classrooms and available to public, private and home-school organizations via a recognized world wide scholastic business network.
39
The Team
THE CREATIVE
THE DESIGN
THE TECHNOLOGISTS
40
Design
41
Components
Lesson Plans for teachers Writing Contest for the students Scholarships' for winners Keepsake for Parents
42
Writing Contest
Writing Contest tied to HP INSPIRE that uses creative imagery from film to create a book
Parents/Teachers asked to work with kids to write a story on

sustainability and the environment
Student writing contest with prizes including: $10,000 scholarship Lorax prizes plus HP computer and Envy printer
43
Tactics in design
Offer Lesson Plans for teachers Offer Writing Contest for the students
Entry process
44
Tactics in design
Entry process Creation tool
45
Tactics in design
46
Tactics in design
47
Tactics in design
48
Tactics in design
Entry process Creation tool Post Creation
49
End Product: Personal Keepsake

In partnership with MagCloud, parents and kids could create their own story with the beautiful creative assets from the movie The Lorax Parents were allowed to selfpublish the book as a keepsake $1 from each book published would go to the WWF!!
50
Highlights
Every Inkling Makes a Difference program reached over 12 Million kids and their families!!
115K Teacher kits were delivered to targeted schools featuring our curriculum and promoting the contest 94% of teachers surveyed integrated the program into their lesson plans 94% of teachers used or planned to use the online writing tool with their class 87% of teachers surveyed said they found the InSchool print program to be useful 93% of teachers said they want to use more programs like this in the future!
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New Market Opportunities For Publishing

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Magazine Publishing Personalized Advertising Program

Driving Consumer Relevance and Advertiser Value in Consumer Magazine Publishing

The Fact IsMagazines Remain Relevant

Median household income: $59.8K

Source: mine Online, Magazine Readership Stay Hearty in 2010, December

As Does Magazine Advertising!

The Opportunity In the Online Paradox.

And In Cross-Media Consumers!

Making Print More Compelling

The Keys to Personalization

Hearst and HP Collaboration

Popular Mechanics- October 2011

Print Online Mobile

The Enabler Convergence

High-speed inkjet web printing

The Enabler Convergence

How Does It Work?

New postal regulations permit onsert insertion without former surcharge

Polybagged Onsert for Popular Mechanics

What Was Customized?

Connecting To Personalized Landing Page

Results and Analysis

HP Onsert and Insert

Entered Contest Visited w/o Entry

Imagine the Possibilities

Hearst and Neiman Marcus

Direct Marketing Comes Alive

The idea is simple ::

Parents/Teachers asked to work with kids to write a story on

Entry process Creation tool

Entry process Creation tool

Entry process Creation tool

Entry process Creation tool

Entry process Creation tool Post Creation

End Product: Personal Keepsake

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