Consumer Marketing Survey. Subscription Sales on the Internet and Digital Developments Study
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1 Consumer Marketing Survey Subscription Sales on the Internet and Digital Developments Study Trend Analysis August, 2011
2 Consumer Marketing Print and Digital Subscription Sales MPA conducted three surveys in 2009, 2010, and 2011 among member publications covering internet subscription activity from 2008 through The following analysis includes the 42 magazines that have participated in all three surveys. This same store comparison includes actual data for and forecasted information for 2011 based on four months of actual experience. Not all titles provided information for every question. Participating Publishers and Titles All You Good Housekeeping People Stylewatch Better Homes and Gardens Magazine Harper's Bazaar Popular Mechanics Coastal Living Health Prevention Cooking Light House Beautiful Real Simple Cosmopolitan InStyle Redbook Country Living Ladies Home Journal Seventeen Entertainment Weekly Marie Claire Southern Living Esquire Men's Health Sports Illustrated Essence Money Sunset National Geographic Family Circle Magazine Magazine This Old House Food & Wine Newsweek Magazine Time Food Network Oprah Town & Country Fortune People Travel + Leisure Golf People en Espanol Veranda 2
3 Internet Subscription Orders Internet subscription sales volume grew 46% from 2008 to 2011 while off-line sub sales grew 42% The mix of internet vs. off-line sold subs has stayed fairly stable except for Online Agent subs which dipped dramatically in 2009 but recovered in 2010 Internet renewals are growing but from a small base and represented 5 total renewals in 2011 ACTUAL 2008 ACTUAL 2009 Orders (000s) Internet Row Offline Row Total % Total Internet Row Off-line Row Total % Total New Business DTP 5,841 22% 20,725 78% 26, % 6,532 21% 24,160 79% 30, % Renewals DTP 624 2% 26,954 98% 27, % 1,105 4% 24,339 96% 25, % Total DTP 6,465 12% 47,679 88% 54, % 7,637 14% 48,500 86% 56, % Agents 2,183 11% 16,965 89% 19, % 940 5% 18,909 95% 19, % Grand Totals 8,648 12% 64,645 88% 73, % 8,577 11% 67,409 89% 75, % ACTUAL 2010 Estimated 2011 Orders (000s) Internet Row Offline Row Total % Total Internet Row Off-line Row Total % Total New Business DTP 7,414 20% 29,907 80% 37, % 7,881 21% 30,093 79% 37, % Renewals DTP 1,482 4% 31,460 96% 32, % 1,509 5% 31,192 95% 32, % Total DTP 8,897 13% 61,367 87% 70, % 9,390 13% 61,285 87% 70, % Agents 3,589 11% 28,947 89% 32, % 3,267 10% 30,143 90% 33, % Grand Totals 12,485 12% 90,314 88% 102, % 12,657 12% 91,428 88% 104, % 3
4 Internet subscriptions are sold direct to publisher rather than through third party agents DTP sales represent total internet sales Agent subscriptions represent 24 total internet sales INTERNET SOLD Orders (000 s) Total New Business DTP 5,841 68% 6,532 76% 7,414 59% 7,881 62% 27,668 65% Renewals DTP 624 7% % % % 4,720 11% Total DTP % % % % 32,388 76% Agents 2,183 25% % 3,589 29% 3,267 26% 9,978 24% Grand Totals 8, % 8, % 12, % 12, % 42, % New business online orders really are new As the internet has grown as a sub source, the % new orders has remained high compared to other sources like agents or insert cards % New Actual % Actual % Actual 2010: 87% Estimated 2011: 87% 4
5 Total internet sold subs grew dramatically from 2009 to 2010 as the recovery began DTP sales have grown consistently Online agent sales have been volatile over the period 14,000 Internet Sub Sales Trend 12,000 10,000 8,000 Orders (000's) 6,000 4,000 2, New Business DTP 5,841 6,532 7,414 7,881 Renewals DTP 624 1,105 1,482 1,509 Total DTP 6,465 7,637 8,897 9,390 Agents 2, ,589 3,267 Grand Totals 8,648 8,577 12,485 12,657 5
6 Responsibility for audience development grew from Circulation marketing is at least partially responsible for web traffic generation and tracking at 93 responding magazines in 2011, up from 60% in Completely responsible: 5% 44% 21% Partially responsible: 55% 14% 72% Not at all responsible: 40% 42% 7% has become a significant source of Renewals has grown from less than 20 renewal orders to almost 40% in 2010 % Renewal Internet Renewal Source Editorial websites 50% 46% 54% 55% 18% 17% 38% 36% Other 33% 37% 8% 9% Total 100.0% 100% 100% 100% 6
7 Editorial websites continue to be the dominant source of New Subs Website share grew from 42% to 49% from 2008 through 2010 but is projected to decline in 2011 due to increases in and SEM Co-Registration has virtually disappeared as a source since 2008 when it represented 16 the volume % New Business Internet DTP New Business Source Editorial websites 42% 45% 49% 42% - internal lists 13% 15% 13% 16% - external third party lists 0.4% 2% 1% 2% All 13.3% 17% 14% 18% Other internal - cross selling, upsells and offline to online 13% 11% 17% 13% Other direct to publisher third parties (i.e. partnerships/affiliates) 12% 19% 3% 2% Search Engine Marketing 4% 4% 6% 12% Co-Registration 16% 3% 0% 0% Other DTP 2% 11% 12% Total Other 45% 38% 36% 39% 100% 100% 100% 100% Agent New Business Source Amazon 23% 26% 21% Magazines.com 23% 19% 22% Other Agents 55% 55% 57% Total 100% 100% 100% Shaded areas indicate data not available 7
8 Overall internet payment has improved or stayed stable despite the growth in volume Website pay up is expected to improve this year after being down since 2009 Other DTP 3 rd party payment will be down to levels not seen since 2008 Magazines.com pay-up has fluctuated compared to the level performance of Amazon subs Pay % DTP New Business Source Editorial websites 56% 51% 51% 60.1% - internal lists 66% 63% 54% 61.2% - external third party lists 41% 66% 26% 29.6% All 65% 63% 52% 58% Other internal - cross selling, upsells and offline to online 69% 70% 65% 69.8% Other direct to publisher third parties (i.e. partnerships/affiliates) 34% 65% 65% 37.7% Search Engine Marketing 56% 77% 65% 64.7% Co-Registration 29% 15% 15% 28.4% Other DTP 47% 86% 86.7% Total Other 51% 63% 71% 71% Agent New Business Source Amazon 99% 99% 99% 99% Magazines.com 98% 88% 93% Other Agents 86% 79% 89% Total 92% 86% 92% Shaded areas indicate data not available 8
9 The internet has become the largest source of New Business for almost a quarter of the titles. Last year the internet provided only 14 new business subs Largest Source of New Business Respondents Internet 14% 24% Other 86% 76% Shaded areas indicate data not available Survey Summary Internet subscription sales volume grew 46% from 2008 to 2011 while off-line sub sales grew 42% Total internet sold subs grew dramatically from 2009 to 2010 as the recovery began Circulation marketing is at least partially responsible for web traffic generation and tracking at 93 responding magazines in 2011, up from 60% in has become a significant source of Renewals Editorial websites continue to be the dominant source of New Subs but and SEM are growing Overall internet payment has improved or stayed stable despite the growth in volume The internet has become the largest source of New Business for almost a quarter of the titles 9
Consumer Marketing Survey Subscription Sales on the Internet and Digital Developments Study 2010 Actual 2011 Forecast
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