Digital Magazine and Newspaper Editions: The Data
o Most B2C publications have a much larger average circulation. Unlike B2B
publications, they are usually read at home or while traveling. Because these
publications are usually read outside of working hours, B2C readers do not
have the same easy access to computers and networks in the work
environment. There are still a significant number of homes that have no
personal computer or the high-bandwidth connections required to make
reading digital magazines a pleasant experience. When the proper
equipment and connection do exist, they are frequently shared among
several family members, making it less practical and convenient to read a
magazine online. Many forms of B2C content focus on current happenings
and thus their content has a shorter useful life. However, in topic areas such
as hobbies, athletic activities, food, etc., the enduring value and appeal of
archiving is greater and penetration rates are comparatively robust.
o While a gross generalization, our observations while conducting this study
indicate that many B2B publishers simply are more committed to their
digital strategies than their B2C colleagues. They have found innovative
marketing approaches for promoting digital editions, such as sending a free
digital edition as soon as a new subscriber signs up for their publication;
offering frequent reminders about the availability of digital editions; and
making hybrid packages of digital and print subscriptions available for little
or no additional cost. In most cases, their digital edition is prominently
displayed on their Web site and is well integrated into their overall Web
strategy.
� Why have penetration rates increased in B2B while declining in B2C?
o Rapid growth in publications can actually depress overall adoption rates in
the short term. For publishers that are dedicated to building their digital
subscriber bases, the percentage of subscribers seems to increase by about
two percentage points per year (e.g., from 10% to 12% to 14%). A large influx
of new publications increases the representation of titles that are just
beginning to build their digital subscriber base, thereby diminishing the
overall percentage. This is more pronounced in B2C because the audited
digital subscription base in 2005 was so small. In reviewing the performance
of specific publications, we found examples where B2C digital readership
grew steadily over the two-year period and others where digital readership
declined significantly. Where there were declines, we suspect that
publishers’ policies were modified to be less favorable towards digital
editions. In B2B, digital editions were better established in 2005, and many
publishers are expanding their participation in the digital edition segment of
the market.
� One could argue that even the 15% B2B penetration rate is not particularly
impressive and that the overall penetration rate of 3.2% is insufficient to garner
the enthusiastic participation of publishers; what needs to be done to address
this situation?
o For well-entrenched behaviors such as those associated with reading
magazines to be changed, there needs to be a significant improvement in the
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©2008 Gilbane Group, Inc. http://gilbane.com