Sunday, August 27, 2006
Magazines, Inserts, and Google... Why is It Always Google?
To be sure, market forces—including escalating production and distribution costs, a depressed ad market, saturated magazine categories and an ever-crowded newsstand—are principal factors... a mass magazine rollout today can run anywhere from $30 million to over $100 million.. “To launch a magazine today, you need a great editor, a solid business team and world-class circulation resources”... major publishers are playing it safe rather than risking multimillions on startups...
TNS Media Intelligence release about newspaper inserts. Read down deep and inserts are down 2.2% compared to last year. Inserts are being used for higher ticket items, however. Watch this play out more as newspapers become a niche media for wealthier, more educated, and older readers.
Good article about Google's effect on small business http://money.cnn.com/magazines/fsb/fsb_archive/2006/09/01/8384907/index.htm
If I may add, I think that American publisher could replace a lot of the money they 'need to start a magazine' with some innovative thinking, partnering with your future reader (and advertisers) and make a magazine people need, want and willing to pay for ...