Folio
Where publishers and printers look to save—and even make money—in 2009.
Vanessa Voltolina and Matt Kinsman FolioMag.com
Magazine production has changed dramatically in the last few years. Tools and standards that have come to the forefront—ad portals, virtual proofing, online insertion orders, PDFs—which weren't exactly new, still gained significant ground.
Today, publishers and printers know there's no single solution. Digital asset management and metadata are all being used, but what's old is new again, with old standbys such as "printing to the numbers" and gray component replacement being resurrected to find cheaper, faster ways to create the final print product.
The publisher/printer relationship often boils down to one factor: Price. Financial pressures have grown significantly over the last year and it's unlikely to change in the near future. But publishers may want to look at the bigger picture and assess whether the cost savings they're seeing are necessarily worth a corresponding drop in service.
Color Management
>Color management continues to be one of the industry's most vital topics, since improvements in color not only improve the finished product, but can yield production efficiencies and savings through reduced waste.
City and regional publisher Niche Media works with its printers to calibrate to the profiles of the presses. "Our make-ready's are faster, we're up to color instantly and consistently because of the closed loop color on the presses," says director of manufacturing Shawn Lowe. "You'll see more publishers partnering with printers as we all fight to keep clients happy and coming back." His goal is to reproduce a common ad better than his competitor, while being consistent across all of its publications so that an ad in Gotham is identical in quality to an ad in Michigan Avenue, for example.
Gray component replacement (GCR) is a technique for replacing gray tones otherwise made from yellow, cyan and magenta separations instead with black ink. Adopted in 1987 by Newsweek, today Time Inc. sees a broader adoption of GCR ink efficiency software with publishers. "The cost savings are substantial and economic forces should speed adoption," says Guy Gleysteen, senior vice president of production at Time Inc. "Similarly, virtual proofing has been in the marketplace for several years, but it seems likely that wider adoption in 2009 is inevitable as publishers focus on viable cost reduction technologies. Both are widely deployed at Time Inc."
Tighter press controls will also play a larger role. "What is needed now is the ability of presses, especially Web presses, to have tighter color control," says Connecticut Cottages & Gardens art and production director Matthew Hageman. "It's the final piece of the puzzle on the way to printing to the numbers. The front end controls are there, the closed-loop color technology is there. The new generation of presses is getting close, so I think it's only a matter of time."
One of Quebecor World's primary technical initiatives in 2008 was assisting with the roll-out of G7 qualification to the Web offset process (the printer claims its Dyersburg, Tennessee plant became the first G7 Qualified Web offset facility in North America). Quebecor World partnered with IDEAlliance to extend G7 Qualification, which began as a sheet-fed process, to Web offset technology.
Is Virtual Proofing Taking Off Or Behind The Times?
Digital workflows enable printers to combine production services once considered distinctly separate, such as pre-press, printing and distribution. Now they've been combined to create a seamless manufacturing process to save time and money without sacrificing quality and service.
"It starts with offering a digital and proofless prepress workflow, moves to a lean, but flexible printing and bindery operation, and goes out the door through multi-faceted distribution systems to cover all channels," says Dan Drake, director of print operations at IPC Print Services. "This allows the publisher to keep advertising open longer because they can submit files later and still get the publication in the hands of the reader faster."
While virtual proofing has existed for years, just 61 percent of publishers used it in 2008 (up from 52 percent in 2007), according to Folio:'s 2008 Manufacturing and Production Trends Survey. "While we have offered it for many years, I believe 2009 will be the year everyone takes a hard look at soft proofing," says Drake. The systems offer more than just proofing capabilities and more stable PDF formats, he says. "It's just like the evolution of computer-to-plate, it took some time, but now the process can be trusted."
In 2009, Hearst will continue to implement virtual proofing with its printers, conduct further tests for fully compliant PDF/X-4 files, and "continue to raise the awareness among the ad community about the importance of including the ISO 12647-7 Digital Control Strip on their supplied proofs for better print predictability," says William McGuirl, quality assurance director at Hearst Magazines.
One production department, which wishes to remain anonymous, tested the concept that when printing with a printer that has calibrated monitors in the press room, provided the front-end calibration matches that of the printer and the front-end set up converts to a profile that matches the paper stock (instead of converting to generic CMYK), the need for proofs is eliminated. "We ditched virtual proofing over the summer. I realized that as long as my monitors were calibrated, and as long as my front end set-up was the same as the premedia set-up at our printer, virtual proofing was unnecessary," the source says. "The department only uses scatter proofs for the well, which they don't ultimately send to the printer. They went on press with a number of hard proofs, but didn't bring them out until the press was up to color. It was dead on."
Eliminating A Few Steps
Blood-Horse Publications has implemented an automatic e-mail notification for when a file is uploaded to an FTP site. "There's no more watching the site for files. It's watching for us," says print operations manager Lisa Coots. Blood-Horse is also using DALiM TWiST, a premedia job processing system, for all of its files. "This allows us to automatically send the files to our printer, Publishers Press, who is also using DALiM," she says. "As a result, we can view uploaded pages and easily identify pages and forms that aren't complete."
They can also send a new file as a replacement for a previously sent file, and as a result, "can monitor their system to make sure the new file will get printed," says Coots. "We‘ve taken advantage of electronic approvals for some print projects. It's fast, efficient and paperless."
Coots says Blood-Horse is in the process of upgrading the in-house electronic tracking system where "we currently cannot attach digital files to the e-ticket," which will make the system user-friendly for print and digital, and allow them cross-platforming on some projects.
Blood-Horse is investigating an ad system that would allow clients to upload a file, attach it to an insertion order and automatically send it though the DALiM TWiST system. "This will reduce man-hours and make for a more efficient workflow," she says.
Connecticut Cottages & Gardens has seen time-saving benefits from Brown Printing's Web-based workflow. "Since we need less time to ship and proof, we've been able to extend in-house deadlines. This has given our ad sales team more time to sell," says Hageman. "It also allows last minute changes that previously would have caused 12 hours worth of chaos to be dealt with in less than half the time at a fraction of the stress."
Ad Portals Draw Small Pubs
While ad portals—which allow advertisers to submit advertising materials electronically and allow the publisher to place the materials into the correct workflow—were once the realm of larger publishers, smaller publishers like Connecticut Cottages and Gardens have begun to use them (although ad portals overall showed little growth over the last year, with 22 percent of publishers using them in 2008 versus 21 percent in 2007).
"I think ad portals are going to become big business," says Hageman. "They save so much time and aggravation. We've logged more hours than we can count troubleshooting files for people...I think it can even deter smaller advertisers who can't afford an agency from advertising at all. The idea that an advertiser can drop a file on a Web site, have it preflighted in seconds, and upon approval be placed into the printer's workflow, is phenomenal."
Niche Media's success with ad portal SendMyAd makes Lowe think that "ad portals will continue to grow and prosper. Anything that will save time, both in allowing for more ad pages, and in delivery speed to the plant, is important." However, Lowe says that portals can be a double-edged sword. "You have to keep the books open later, but you still have to make your press date and deliver books on time. There's little margin for mistakes, so the first shot has to be dead on."
Niche Media started experimenting with ad portals more than three years ago, and believes that they will "continue to grow and consolidate," says Lowe. "Advertisers are also looking for the speed and additional time to get last minute creative to press."
Niche is also starting to convert to InDesign and Acrobat, particularly "after seeing the industry shift to Adobe, to the point where Quark now has a publishing system that is file agnostic and will take ID files," says Lowe. "The goal is to first reproduce the supplied creative perfectly, since many advertisers are pushing back on poor reproduction."
Postal and Co-Mailing
Publishers have been adjusting for mailing rates, as Periodicals, Standard or First Class postage will rise by just about 4 percent in May. But as publishers know, that's not a given.
IPC's Dan Drake says the Intelligent Mail Barcode—the next generation of USPS barcode technology for sorting and tracking letters and flats—could be as big as co-mailing in terms of cutting costs and boosting efficiencies. "The incorporation of the full-service Intelligent Mail Barcode into magazine distribution systems will be huge," he adds. "It will be mandatory in 2010, but the U.S. Postal Service is expected to raise rates for magazines that do not incorporate it sooner. If you wait until late fall, you could find yourself scrambling."
Traditional Workflow
Ovid Bell emphasizes "lean manufacturing" to cut costs, and is pursuing paper deals with vendors that will have an immediate effect for customers. The printer has installed a new perfect binder, which provides a 143 percent increase in production capacity, and is recasting one of its presses as a cover press, including a sheeter for perfect bind covers.
"We're also working on shorter turn around schedules," says president John Bell, primarily with monthlies that can maintain production schedules. "In the short-run production arena, there aren't many."
The industry may see more manufacturing partnerships between publishers in the same market. "Smaller publications may lean on other publishers to help create, print and distribute their magazines and newsletters, due to reduced staff and increased manufacturing costs," says Coots. "We are all in this together."
Just as publishers are realizing with edit and marketing, there's only so much that can be cut from the manufacturing process.
Lowe says that Niche Media is still "one of the few publishers who run 50/50 splits. Investments in technology are necessary just to stay in the game today."
Folio
NICHE MEDIA'S CELEB COVER PARTIES BUILD BRAND BUZZ HOW THE ULTRA-LUXE MAGAZINE PUBLISHER USES EVENTS TO BUILD BUSINESS, AND ITS BRANDS.
Nearly every issue of Niche Media's six magazines is celebrated with a private party complete with celebrity cover star, millionaire-packed guest list and flashing cameras from the most notorious members of the print and television press. Niche Media's six luxury regional lifestyle titles are mailed to a select group of elite readers. Recipients of the controlled circ magazines need to pass through three filters: $1 million in liquid assets, $200,000+ annual income, and a home valued at $1 million or more. When your readership base is cream of the crop you naturally draw in top advertisers who want to reach consumers with money to spend.
Events are a core part of Niche's overall business platform. The publisher producers nearly 250 events per year, 30 of which are cover parties. Other events focus on raising money for charities and a variety of other parties including individual advertiser events. "As much as distribution, the right advertising environment, the right contributors, infrastructure and staffing are important, it's also about events and marketing your product," says CEO Jason Binn.
Niche group marketing director Emily Kampner has a four-person Manhattan-based staff that handles all parties for Gotham (monthly) and Hamptons (weekly, Memorial Day through Labor Day), with a designated event director in each of the other cities where Niche publishes magazines. Approximately 300 guests attend the cover parties, which are held weekly throughout the year. At times multiple events are held in one weekend, especially during summer months. "our marketing department in 99.9 percent event-driven," says Kampner. "Everything we do from an added-value perspective and marketing perspective is events."
Due to the financial standing of its readers, celebrities are an added-value to the Niche Media readership base. According to Kampner, celebrities welcome the opportunity to adorn the covers of Aspen Peak, Boston Common, Captiol File, Gotham, Hamptons and Los Angeles Confidential magazines, due to the relationships they have with the magazines.
Binn dips into the company's pockets to throw a cover party for nearly all of his cover stars. With or without funding from sponsors, Niche puts on a party with cover celebrities, select readers, advertisers and press. "It's community building, it's brand building, it's giving credibility to the people you are connecting with in that marketplace," says Binn. "It brings in money but that's not our priority. It's part of our business model to fund these events."
Each party is relevant to the celebrity cover star and the individual market, according to Kampner, who at presstime, was planning a Golden Globes party in honor of L.A. Confidential cover star Penelope Cruz's nomination. Similarly, in December, Boston-native actor Denis Leary celebrated his Boston Common cover with Boston Bruins hockey star Cam Neely in the capital.
Although at times cover parties are held without sponsors, the company does not refuse finding from interested advertisers. For example, for a New Year's Eve party in Aspen with Heidi Klum and husband Seal, Hendricks Vodka joined Aspen Peak as presenting sponsor for the event. The liquor company got its name in top billing alongside the magazine brand on the invitations, signage and every press release. The parties do turn a profit, according to Binn, but that's not his primary concern. "Typically magazines say ‘We're not doing this event unless we raise X amount of money,'" says Binn. "Our attitude is that if it's great opportunity, let's do it, and then, if we can get financial supporters, that's a second priority."
Event marketing comes with ease to Kampner and her staff, which is one of the benefits of the strength of the brand. The cover parties are well-known amongst the celebrities and consumers who attend, while press impressions seem to come with the territory. Although, Niche does work with Fox Greenberg, the coveted guest list is what really attracts the cameras. Binn says relationships with the media are key and when you say a certain someone will be in attendance, you'd better deliver. "If you don't they won't be there next time," he says.
Niche cover parties have been featured on TV programs like "Entertainment Tonight" and "Access Hollywood" as well as in celeb mags like Us and InStyle due to their celebrity buzz-factor. "the key is making sure the event itself has the right people attending and the right feel for the celebrity," says Kampner. "You have to manage the guest list the same way you manage your brand."
Folio
Niche Media and The Greenspun Corporation have formed a partnership to extend three Greenspun Media Group titles, VEGAS, Wynn and Venetian Style, into the luxury market now served by Niche Media's publications, according to a statement released by both companies Monday.
The three Greenspun publications will now fall under the Niche umbrella, which is comprised of Aspen Peak, Boston Common, Capitol File, Gotham, Hamptons, and Los Angeles Confidential. The new partnership will conduct business with Niche Media's Jason Binn as CEO and Greenspun's Brian Greenspun as chairman.
"This is a wonderful marriage of companies for us," said Binn, in a statement. "The Greenspun Media Group reputation will allow us to accelerate our market share for our advertising partners."
The Greenspun Media Group is managed by The Greenspun Corporation with headquarters in Henderson, Nevada. Its primary businesses include the weekly newspaper and magazine publications, In Business Las Vegas, Las Vegas Home & Design, Las Vegas Magazine (LVM) and LVM2Go, Las Vegas Life magazine, Las Vegas Weekly, The News Community Newspapers, The Ralston Report, VEGAS Magazine, VegasGolfer Magazine and CelebrityWeek.com. GMG also publishes the Las Vegas Sun daily newspaper and owns several television stations.
Last fall, Hachette Filipacchi president and CEO and Magazine Publishers
of America president Jack Kliger called on the magazine industry to
re-examine its performance metrics by asking: "Why should an advertiser
care whether a magazine copy is paid or unpaid or how much or by
whom if it delivers readers who are appropriate targets for their
products?"
While that was intended as a rallying cry for an industry plagued with
circulation scandals and dwindling newsstand response, it's not likely
many publishers will abandon their own dependence on circulation
metrics, especially in the fiercely competitive regional magazine
market. In recent years, the regional magazine market has seen
competition grow between two different types of regional magazines:
traditional regional general interest, list oriented, paid
circulation versus the new regional upscale, visual-dependent,
controlled circulation, published by companies such as Jerry Power's
Ocean Drive, Michael Kong's Modern Luxury and Jason Binn's Niche
Media. (SEE: Regional Magazine Glut.) While paid circ regionals
largely have been dismissive of the glossy freebies, the new luxe titles
have made enough dents in the local ad market to demand a response.
Emmis Communications, which publishes behemoth Texas Monthly and
68,177 circ. Atlanta Magazine, falls into the paid circ camp and
recently released a study in which it commissioned Monroe Mendelsohn
Research to examine how readers in three markets-Atlanta, Dallas and Los
Angeles-feel about magazines they pay for versus free regionals mailed
to their homes. The study found what else that free magazines "proved to
be significantly less likely to be read and significantly less likely to
be valued than paid magazines."
In Atlanta's swanky Buckhead community, the study claims just 5.6
percent of respondents hadn't heard of Emmis' Atlanta Magazine,
while 76.3 percent hadn't heard of Paper City and 56.3 percent hadn't
heard of Season. In Dallas, only 4.5 percent of respondents hadn't heard
of Texas Monthly, compared to 80.2 percent for Brilliant and 59.8
percent for Modern Luxury Dallas. In Los Angeles, just 5 percent of
respondents hadn't heard of Los Angeles Magazine compared to 39.6
percent in Angeleno.
The study took an additional shot at freebies, saying a significant
number of respondents indicated they wanted to be taken off circulation
lists, although phrased in generic terms, claiming 94.7 percent of
Atlanta respondents "say they receive too many UNSOLICITED catalogs,
brochures, magazines and newspapers in the mail."
Whether advertisers put significant stock in the study remains to be
seen but it's clear publishers aren't ready to give up paid circ as a
selling point.
