FIPP, the international magazine association, spoke recently with Jacqueline Loch, VP & Group Publisher at St. Joseph Media, about the media company’s “fundamental shift” in its revenue models.
It’s an interesting conversation that takes SJM’s strategy for FASHION magazine as its starting point—Loch describes how the magazine has meaningfully transitioned away from “traditional” revenue streams by re-positioning itself as a luxury brand with advertisers and readers—and continues into a discussion about the company’s plans for further innovation and diversified revenue.
Loch on FASHION magazine: “We made a commitment to deliver a quality luxury brand to our audiences and to our advertisers. This applies to everything that we do from the quality of the paper stock that we print on, to the quality of our content and our content strategy to the quality of our advertisers. […] We turned away many of the programmatic advertising categories that were harmful to our brand, which meant turning away revenue, in favour of creating a luxury environment that we sell at a high CPM. We focus on quality of engagement and consumer experience versus reach and audience numbers.”
On shifting revenue models and reader expectations: “Traditional magazine revenue streams have been declining year-over-year, and we all know that that is not a sustainable business model for any media brand. At the same time consumer media consumption habits have been changing towards mobile-based experiences that range from video to social platforms. […] We have focused on consumer engagement and editorial integrations—and through innovative concepts and technology, we are changing our conversations with advertisers and the way that we partner with them to bring advertising brands to market.
“This approach has turned the revenue model on its head—we are no longer selling media—we are co-creating complex marketing solutions with our advertisers. […] The result is a shift in advertising revenue from 100 per cent traditional to a diversified stream with revenue coming from everything from branded content, video, social media, influencer programs, co-branded cover executions to augmented reality, events and custom research.”
Loch will also be speaking at the upcoming 2017 FIPP World Congress in London. Many Magazines Canada members will remember the last World Congress, which was hosted by Canada in 2015, with the event held in Toronto. The 2017 event is not quite so close to home, but it will still include Canadian perspectives from Loch and Nikolay Malyarov, Chief Content Officer and General Counsel at Press Reader.
The Congress is coming up October 9–11, 2017. Find out more at fippcongress.com.
Magazines Canada members can register for the Congress at a special discount. Please contact Evan Dickson at firstname.lastname@example.org for the discount code.