In the news: Subscriptions were up in 2020. Will gains be fleeting or long-term?

Last year, publishers saw significant gains in subscription revenue, reports Sara Guaglione of Digiday.com: “Subscription revenue for publishers grew 16%, according to a study by subscription management platform Zuora; around a fifth (21%) of American adults now pay for at least one online news outlet in the U.S., according to the Reuters Institute Digital News Report 2021.” It’s good news for a chaotic pandemic year that brought myriad staffing, workflow, and logistical challenges.

The question is whether or not the subscription gains are pandemic-specific or enduring. “Retention rates are holding steady -- for now,” Guaglione says. “But to ensure that they can keep the customers they’ve won over the past 18 months, publishers are hiring more people focused on keeping and bringing in subscribers and also investing more in content across multiple formats to add to the value of a subscription.” Read more about how specific publishers are attracting, and keeping, subscribers here.

Also Notable

Improving News Accessibility

How can news publishers reach vision- and hearing-impaired consumers? Katya Bandouil of Poynter.org examines the issue this week. Among those publications leading the way, she says, is the Texas Tribune: “Off-platform editor Regina Mack said that their newsroom uses alternative text and called on other organizations to follow suit.... Alternative text is a written description of what is shown in an image. It can also help assistive technology, such as screen reading tools, to interpret images.” Other tools that can help readers with special needs include captions and transcripts. But, ultimately, Bandouil advises publishers to reach out to affected readers and ask what would make news content more accessible to them. Read more here.

Should You Consider Programmatic Advertising?

As programmatic advertising takes root in the publishing industry, many publishers are considering taking the jump. In a recent piece, The Fix (part of What’s New in Publishing) examines how programmatic can drive revenue and what criteria a publication needs to come on board. There are advantages, The Fix says, including more revenue from less effort, but also distinct disadvantages: “The auction is fully automated, but both publishers and advertisers need dedicated staff for process control and optimization.” Read more here.

Fashion Magazines Try NFTs

Are non-fungible tokens (NFTs) the next lucrative revenue stream for fashion magazines? Vogue is about to find out. Maghan McDowell of VogueBusiness.com explores Vogue Singapore’s foray into non-fungible tokens in its September 2021 issue. “NFTs offer a potential revenue stream for magazines, while the positioning gives readers a chance to evaluate exclusive, digital items of value,” McDowell says. “NFT and fashion magazine tie-ups can help translate the value of non-fungible tokens for the fashion crowd as well as give print media a new angle of relevance.” Vogue Singapore’s September issue has 15 NFTs for sale. Read more here.

How Magazines Are Cutting Costs

Earlier this month, Beth Braverman of Foliomag.com took a look at how magazines are cutting print costs, increasing automation, and realigning staff to meet the industry’s changing needs. “Holding down costs means taking a look at expenses across the board, from little things like office supplies and catered lunches to big ones like printing and postage....” she writes. “The trend toward fewer, higher quality issues carries on, as publishers continue implementing frequency reductions in print magazines.” But it isn’t just about cutting overhead costs, Braverman says. “The most painful cost-cutting strategy for most publishers, of course, is staff reductions.... Even magazine companies that aren’t implementing layoffs are looking closely at staff positions for ways to meet changing demands without increasing headcount.” Read more here.

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Which sales methodologies work, and which ones don’t, when courting advertisers?

By William Dunkerley

The ultimate test of any publication's ad sales department lies in the results. Is it producing revenue according to expectation? Is it maximizing opportunities for closing deals?

If you find that ad sales are falling short of your needs or are not at an optimal level, it's time to take a look at the sales methodology you are using. Actually, there are several distinct methodologies that. For the sake of discussion I've named them:

1. Begging for ads.

2. Schmoozing for ads.

3. Strategizing for ads.

4. Brokering for ads.

5. Outsourcing for ads.

A few of the names are intentionally given in lighthearted terms. I'll describe them all one at a time.

Begging for Ads

This method does not really involve getting on your knees and pleading. Basically it is a category where you are offering potential buyers advertising space without representing a direct commercial benefit for the advertiser.

My first encounter with this approach dates to my high school days. Friends and I were members of a hobby club that would hold a large annual event for which there was a program booklet. We were tasked with selling ads in the booklet to support the club, so we'd go out and prevail upon family and friends, especially those with a business connection, to buy ads. If there was a business we often patronized, we hit them up too. Out of the goodness of their hearts, some would pay the nominal amount for an ad. Those without a business connection might simply insert a "compliments of a friend" ad. Ads in high school yearbooks are typically sold in the same way.

A more sophisticated variant of this can be found in the way some professional publishers attempt to sell ads. It is definitely a suboptimal approach.

I've had the opportunity to observe the sales presentations of many ad sales representatives at all kinds of publications. The tip-off that this methodology is being used can often be heard in the opening lines of the sales pitch. In a cold call it goes something like this: "I'd like to tell you something about our publication."

That's usually followed by reciting some boastful features about the publication -- e.g., audience size and demographics, focus of editorial coverage, etc.

Some call this the opera singer approach. You know, "me me me me."

The problem with this is that your publication may be of little interest to the advertiser.

Advertisers are typically more interested in their own businesses, not in your publication. If you are just telling a prospect about features of your publication and expecting an order, that's tantamount to the "begging for ads" approach. You've not connected things to a commercial benefit. That's not a wise approach.

There is a special situation, however, when this approach is perfectly appropriate. That's if you are selling ads in a publication of a charity organization. In that case, a company may be happy to place an ad just as a form of financial support for the charity. Showing a commercial benefit is not necessary.

Schmoozing for Ads

This is usually called "relationship selling," a more dignified term. This can be a very productive method of selling. It's not quick, though. It takes time to establish a relationship and build trust. Any ad sales activity requires establishing rapport with the prospect. Relationship selling takes this to a higher level.

There are some situations in which relationship selling is a must. A good example is when the cost to advertise is relatively high. That can be true with other kinds of high-ticket sales.

For example, back in the print era, there was a time when I was spending millions of dollars on publication printing. I was always hearing from printing companies. Each wanted me to move a publication from the existing printer to their company.

That's not the kind of decision that can be prompted by even the best of cold calls. I finally did change printers. The deal was made with a salesperson who had maintained a relationship over several years. The reputation of the printer (i.e., its brand) played an important role too.

In selling advertising, the importance of relationship selling is influenced by how expensive an ad is. The price for a run-of-publication ad in Forbes magazine is reportedly about $50,000. For many prospects that will be considered a big-ticket item.

It's relative, though. For a fledgling advertiser being approached by a small B2B publication, $5000 for a ROP page may seem like a lot.

When an advertiser is placing an ad, it is taking a chance on your publication. Results aren't guaranteed, so a solid relationship between buyer and seller plus a strong brand image for your publication are usually required.

There's more to be considered when it comes to relationship selling. It also can have some drawbacks. We'll pick up on that next time, and then dive into the other sales methods listed earlier.

William Dunkerley is principal of William Dunkerley Publishing Consultants, www.publishinghelp.com.

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During this time of crisis, we stand ready to answer privately any specific questions our readers may have, time permitting. You can contact us at:

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When the national health crisis subsides, publishers unfortunately should not expect to easily resume business as usual. Economists are predicting tough times ahead. In addition, the impact of the crisis may well result in different expectations of us on the part of our audiences. STRAT is providing a series of articles to help you all through the period of recovery and readjustment.