FOCUS: CONTRACT PUBLISHING - Screen printing. Contract publishing is booming as companies crave on-line and off-line content for their customers. Nick Purdom reports on how the complementary media are being given the bespoke treatment

Contract publishers are a hive of frenzied activity at the moment. Not only are traditional customer magazines going from strength to strength (as revealed by the Association of Publishing Agencies research - see panel), but a whole new opportunity has arrived in the form of on-line publishing.

Contract publishers are a hive of frenzied activity at the moment.

Not only are traditional customer magazines going from strength to

strength (as revealed by the Association of Publishing Agencies research

- see panel), but a whole new opportunity has arrived in the form of

on-line publishing.



Some contract publishers have already taken the plunge into the brave

new world of on-line magazines, while those which haven’t are busily

working away behind the scenes to try to seize this opportunity.



TPD was one of the earliest contract publishers to go into on-line

publishing.



’We’ve been doing interactive content since 1994. About one third of our

UK revenue is now derived from this and it’s growing very rapidly,’ says

TPD chairman Julian Treasure.



The company’s interactive division now has a turnover of around pounds

2.5 million, employs 30 people, and numbers ONdigital, United Airlines

and Microsoft among its clients.



Treasure has no doubt that the move into interactive publishing was

crucial to the company’s future. ’We have several interactive-only

clients, and if we’d stuck to print Microsoft would no longer be a

client.’



TPD may have taken a lead, but other contract publishers are showing

similar commitment to on-line publishing. ’Every new customer that comes

to us is looking to produce both a printed magazine and an on-line

version,’ says John Brown Contract Publishing chief executive Andrew

Hirsch.



John Brown helped launch Waitrose.com just over a year ago, is doing

sites for Ikea in Germany and Finnish paper company Metsa-Serla, and has

just put the finishing touches to its new site for Orange.



Specialist Publications is currently involved in five on-line publishing

ventures, according to managing director Jim Addison. Some of these are

under wraps, but one is a project for Peugeot UK’s members’ site.



Mediamark launched voyagermark.com as an on-line magazine for British

Midland a year ago (see panel opposite). The company is following its

success with Voyager by launching an electronic division in

September.



Sales and marketing manager for the new division David Le Lacheur is

also working on two new on-line magazines which will appear shortly

afterwards.



’There is a huge opportunity in on-line publishing. If you look at the

number of companies that have web sites that don’t contribute to

increasing customer loyalty then you can see the potential,’ says Le

Lacheur.



Summerhouse Publishing in Norwich is yet to venture into the on-line

world, but business development director Gareth Homfray-Davies is well

aware of the potential. ’Almost without exception our clients are asking

us to create on-line magazines for them,’ he says. ’We’ve got two major

initiatives in the pipeline.’



As the demand for on-line publications booms, contract publishers feel

they are very well placed to make the most of this new opportunity.

Hirsch has no doubt why companies are coming to him asking for on-line

publications.



’Every major company has got an on-line presence, but what a lot don’t

have is good on-line content. You need to keep people coming to a site

by creating good content.’



Addison agrees. ’Publishers like us are good at providing really good

content and this is where we see our skills being useful to clients in

terms of their on-line presence. Quite a few organisations have become

seduced by the ’bells and whistles’ of a sexy web site and have

forgotten that content is always king.’



But contract publishers are also aware that print cannot simply be

replicated on-line, and that the two media have their distinct

qualities.



’The content from magazines has as a minimum requirement to be

re-purposed on-line. Better still to make it unique,’ says

Homfray-Davies. Treasure concurs. ’We wouldn’t take the same content and

put it on-line, we would do a different version of the content.’



’Our strategy for producing on-line magazines is to recognise the

strengths and weaknesses of the web and produce content accordingly,’

says Addison.



’We produce a 68-page magazine for Peugeot customers called Rapport.

Some of the lifestyle articles are taken on to the Peugeot drivers’

site, but they come in a different format. There isn’t space to download

full-bleed colour photographs and no one wants to read pages and pages

of on-screen copy.’



Addison regards the internet as ideal for imparting information quickly,

but believes print is better for providing detailed information.

Treasure has a different view.



’The value of the internet is that it allows more breadth and depth.



You have the ability to search a huge archive,’ he says. For example,

TPD originally printed a series of consumer guides for credit card

Goldfish, but is now producing these in an interactive format because

this allows people to search for the information they require in the

depth they need.



Publishing on-line also presents a whole new series of design

challenges, which publishers used to producing glossy print magazines

must be aware of. ’On-line you can lose someone very quickly,’ says

Hirsch.



’If they go on-line and the design is confusing they don’t continue,

whereas if a magazine is confusing they will flick through it and only

give up after 30 or 40 pages. You have less time on-line to keep the

customer, so simplicity is the name of the game.’



Simplicity means a lot less text, and no full page photographs because

they take too long to download. ’A magazine can be luxurious and look

beautiful, while on the internet it’s all about practicality,’ suggests

Hirsch.



With all the challenges that working on-line presents to contract

publishers, the reason that they and their clients are so excited about

on-line publishing, however, has to be the opportunities it offers for

interactivity. Specialist Publications is about to launch an on-line

publication for Woodward’s, a food service company targeting caterers,

and the appeal of going on-line was definitely its interactive quality.

’The client wanted to go on-line to get more interactivity with its

customer base and to find out what it wants. It’s all about improving

communications,’ says Addison.



On-line publications allow readers to enter into a dialogue with a

company, show their needs and interests, and even influence content. Of

perhaps even greater importance, it is also made very easy for users to

buy products and services.



’One of the joys of interactivity is you can see exactly where people

have gone on a site. If you have content which no one has accessed for a

few days you can pull it, while areas of the site which are red hot can

be given more emphasis,’ says Treasure.



Publishers are understandably excited about the potential of the on-line

world, but they don’t believe that print is dead as far as contract

publishing is concerned. ’I don’t believe paper will die, because it has

values interactive communication can’t replicate, such as physicality,

convenience, low entry costs, universality and portability,’ says

Treasure.



Homfray-Davies feels the same way. ’Printed magazines are still a

definite must for any high value, high emotional involvement purchase or

brand,’ he says.



’An on-line presence will always find it hard to reward customers - one

of the prime benefits of a customer magazine. True, many portal sites

offer the user value-added benefits, but a quality customer magazine is

a highly effective - and much appreciated - way of saying thank you for

using us, staying with us or joining us.’



Print magazines are also fulfilling another useful function at the

moment - driving traffic to web sites. ’One of the downsides of on-line

publishing is that you have to persuade people to come to the site - a

printed magazine can do that,’ says Addison. ’In the immediate future

they will be ideal for the task of explaining to the uninitiated exactly

how a company’s web site works, and can flag up e-commerce procedures,’

he adds.



Hirsch suggests that a magazine should ’serve as an appetiser for what’s

on-line. A magazine can spark debate, and the internet can service

that.’ This is happening with John Brown Contract Publishing’s work for

Finnish paper company Metsa-Serla. The company is targeting editors and

art directors, and the print magazine has recently been used to spark an

on-line debate about use of colour.



Print and on-line may be regarded as complementary, at least in the

medium term, but the benefits of on-line communication are such that

some companies may decide that they only need to communicate with

customers in this way in the future.



’None of our clients are abandoning the off-line magazine in favour of

on-line, but with some of our business-to-business titles, and in-house

staff titles, where speed of information and cost of distribution are

significant factors, that is a possibility,’ says Homfray-Davies.



Many customer magazines are only published quarterly, or at most

monthly, and one of the great advantages of the on-line medium is that

it means information can be bang up-to-date. This can be particularly

significant when it comes to e-commerce.



TPD publishes a quarterly magazine for Perks4U, a company offering SMEs

perks for their employees. ’The magazine has features, but it can’t keep

up with the offers, which change daily,’ explains Treasure. The web site

- handled in-house by Perks4U - can do this easily.



As far as contract publishers are concerned, personalisation is the

future.



This means tailoring communications to the precise needs of

individuals.



’In the future there will be much more segmentation and publications

which are much more targeted at individuals. There will be a time in the

future where we publish in almost a bespoke manner,’ says Le

Lacheur.



’The marketers’ holy grail of one-to-one marketing is much closer,’

agrees Homfray-Davies. But he still sees a place for printed

publications within this scenario. ’We will see a growth in tandem

publishing. The on-line presence will deliver segmented off-line

magazines on request, satisfying both demands - quick, targeted

information and a quality read.’



The APA’s survey shows that customer magazines are already influential

in persuading people to buy products and services, but on-line

publications could prove far more influential. Hirsch mentions

technology being used in the US similar to the barcode system which

enables people to order by scrolling their mouse over a symbol.



The future for customer publishing seems to be one in which passive

becomes interactive, static become dynamic, and fixed becomes mobile.

’Our future will be to assemble content - words, pictures, animation,

audio and video - and deliver it through the most appropriate medium, as

selected by the customer,’ says Treasure.



He believes that video will become a part of customer web sites within a

year to 18 months, but not before there have been improvements in the

technology. The roll out of ADSL, which enables the old copper-wire

telephone network to be used for broadband, data-intensive applications

like video, will be key.



’The vast majority of content on the internet is static at the moment,

but as bandwidth increases streamed audio and video become possible,’

says Treasure.



The way people interact with information will also change dramatically

in the future, says Treasure. ’The voice is going to be a very

significant form of communication,’ he says. It’s natural to talk and

listen, and that’s the way people need to be looking to communicate with

their customers.





CUSTOMER MAGAZINES SURVEY



On-line publishing represents a great opportunity for contract

publishers to drive e-commerce, but research by the industry body, the

Association of Publishing Agencies, in conjunction with Royal Mail shows

that traditional customer magazines are already very successful in

influencing purchasing behaviour.



The survey, carried out by research agency Millward Brown, was the first

generic survey to look at the effectiveness of customer magazines as a

marketing medium. And the results, certainly as far as contract

publishers and their clients are concerned, make very good reading.



Millward Brown conducted the survey among over 1,000 readers and 300

non-readers of business and consumer customer magazines. Nearly 70 per

cent of those questioned were from the ABC1 demographic profile, and 58

per cent of consumer and 52 per cent of business readers were in the 25-

44 age group.



There may be few doubts nowadays that customer magazines are a good

read, but what has not been so clear is how effective they are as a

marketing tool.



Customer magazines, it seems, really do influence purchasing

decisions.



No less than 47 per cent of consumer and 28 per cent of business readers

in the survey said they had purchased a product or service as a result

of reading a customer magazine.



Retail consumer magazines proved even more effective, with 73 per cent

saying they had made a purchase. A total of 53 per cent of consumer and

44 per cent of business readers said they would be more likely to

purchase products that featured in a customer magazine.



Customer magazines were also shown to have a healthy influence on brand

image and awareness. Of consumer readers, 82 per cent felt that

companies supplying them with customer magazines could be trusted, and

76 per cent felt that they offer good value for money. An encouraging 77

per cent of both consumer and business readers felt magazines are a

better way of telling them about products and services than other forms

of marketing.



There was also evidence that customer magazines engender loyalty: 40 per

cent of consumer and 29 per cent of business magazine readers said they

were more likely to go on using a company or choose that company in the

future as a result of reading a customer magazine.



The survey revealed that readers really do value their magazines: 81 per

cent of consumer and 79 per cent of business readers enjoyed their

publications. In addition, 92 and 94 per cent respectively found them

informative, and 71 and 57 per cent respectively rated them as

relevant.



’The research proves that customer magazines play a unique but critical

role in building sales, increasing brand awareness, and improving

customer loyalty and retention,’ concludes APA director, Hilary

Weaver.





BRITISH MIDLAND’S ON-LINE CUSTOMER MAGAZINE voyagermag.com



When British Midland’s voyagermag.com went live last year it became the

first standalone ’inflight’ magazine on the web in the world. ’The web

site was created to support the monthly hard copy version of the

airline’s customer magazine Voyager, but supplement it with additional,

more up-to-date information,’ explains David Le Lacheur, sales and

marketing manager of publisher Mediamark’s new electronic division.



The initiative to go on-line came from Mediamark. ’We thought it would

bring added loyalty and give benefits to passengers,’ says Le

Lacheur.



The content of the on-line magazine is essentially the same as that of

the off-line version, with the key difference that up-to-date

information on all 32 destinations served by the airline is carried

on-line.



At the moment this information is not comprehensive, and there are

details of only a handful of hotels and restaurants. Mediamark has more

ambitious plans for the future, however. E- commerce is not surprisingly

high on the agenda.



’We would like passengers to be able to click on a restaurant in Paris

and book a table there,’ says Le Lacheur. In the meantime, the

destination pages are linked to British Midland’s home page, allowing

readers to book flights direct.



Other areas of the web site are essentially slimmed-down versions of the

magazine. Le Lacheur explains the relationship between print and on-line

versions: ’The magazine is used to drive traffic to the web site so

users can gain updates on stories found in the magazine. Users are

encouraged to read the offline version for the full, in depth

story.’



This highlights one of the fundamental differences between a magazine

and a web site. Magazines tend to be read at leisure and savoured,

whereas web sites are used to research information and, or so the owners

hope, book products and services.



Le Lacheur is well aware of the differences: ’Voyager is a glossy,

European lifestyle title. On the computer screen you don’t have that

luxury. You have to make it easy for people to access the information

they need.’ So whether transferring interviews - the latest issue

carries a piece on director Guy Ritchie - from magazine to web site

really works is open to debate.



However, Mediamark has plans to make on-line features more

appealing.



’We plan to add video clips and sound,’ says Le Lacheur. ’This will

probably come on board when British Midland starts flying long haul,

hopefully next year.’



Another advantage of the on-line medium is that it enables Mediamark to

monitor the popularity of different sections, and use this information

to determine the content in the future. ’We invite readers’ comments and

there are links on every page enabling them to contact us. We’ll act on

anything that comes in and we aim to have a good, ongoing communication

with readers,’ says Le Lacheur.



But the overriding impression is that there are real commercial reasons

behind putting Voyager on-line.



Le Lacheur acknowledges: ’Development work is ongoing to generate

revenue through partners, sponsorship and some banner advertising to

turn the site into a profit centre for both Mediamark and British

Midland.’ One of Mediamark’s plans is to create an on-line shopping mall

for consumer goods in the What’s New section of the site that would

provide income from e-commerce.



Mediamark was unable to provide figures on how many people are visiting

the site. But Le Lacheur has no doubt it has been a success. ’We know

from running successful competitions that there has been a very

favourable response, particularly from frequent flyers.’



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