Consumer Marketing Survey Subscription Sales on the Internet and Digital Developments Study Trend Analysis 2008-2011 August, 2011
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 2011. The following analysis includes the 42 magazines that have participated in all three surveys. This same store comparison includes actual data for 2008-2010 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
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 2008-2011 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% 26,566 100% 6,532 21% 24,160 79% 30,692 100% Renewals DTP 624 2% 26,954 98% 27,578 100% 1,105 4% 24,339 96% 25,444 100% Total DTP 6,465 12% 47,679 88% 54,144 100% 7,637 14% 48,500 86% 56,136 100% Agents 2,183 11% 16,965 89% 19,149 100% 940 5% 18,909 95% 19,849 100% Grand Totals 8,648 12% 64,645 88% 73,293 100% 8,577 11% 67,409 89% 75,986 100% 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% 37,321 100% 7,881 21% 30,093 79% 37,974 100% Renewals DTP 1,482 4% 31,460 96% 32,943 100% 1,509 5% 31,192 95% 32,701 100% Total DTP 8,897 13% 61,367 87% 70,264 100% 9,390 13% 61,285 87% 70,675 100% Agents 3,589 11% 28,947 89% 32,536 100% 3,267 10% 30,143 90% 33,410 100% Grand Totals 12,485 12% 90,314 88% 102,800 100% 12,657 12% 91,428 88% 104,085 100% 3
Internet subscriptions are sold direct to publisher rather than through third party agents DTP sales represent 76 2008-2011 total internet sales Agent subscriptions represent 24 total internet sales INTERNET SOLD Orders (000 s) 2008 2009 2010 2011 Total 08-11 New Business DTP 5,841 68% 6,532 76% 7,414 59% 7,881 62% 27,668 65% Renewals DTP 624 7% 1105 13% 1482 12% 1509 12% 4,720 11% Total DTP 6465 75% 7637 89% 8897 71% 9390 74% 32,388 76% Agents 2,183 25% 940 11% 3,589 29% 3,267 26% 9,978 24% Grand Totals 8,648 100% 8,577 100% 12,485 100% 12,657 100% 42,367 100% 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 2008 89% Actual 2009 87% Actual 2010: 87% Estimated 2011: 87% 4
Total internet sold subs grew dramatically from 2009 to 2010 as the recovery began DTP sales have grown consistently 2008-2011 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 2,000-2008 2009 2010 2011 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 2,183 940 3,589 3,267 Grand Totals 8,648 8,577 12,485 12,657 5
Responsibility for audience development grew from 2009-2011 Circulation marketing is at least partially responsible for web traffic generation and tracking at 93 responding magazines in 2011, up from 60% in 2009 2009 2010 2011 Completely responsible: 5% 44% 21% Partially responsible: 55% 14% 72% Not at all responsible: 40% 42% 7% Email has become a significant source of Renewals Email has grown from less than 20 renewal orders to almost 40% in 2010 % Renewal Internet Renewal Source 2008 2009 2010 2011 Editorial websites 50% 46% 54% 55% Email 18% 17% 38% 36% Other 33% 37% 8% 9% Total 100.0% 100% 100% 100% 6
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 email 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 2008 2009 2010 2011 Editorial websites 42% 45% 49% 42% Email - internal lists 13% 15% 13% 16% Email - external third party lists 0.4% 2% 1% 2% All Email 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
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 2008 2009 2010 2011 Editorial websites 56% 51% 51% 60.1% Email - internal lists 66% 63% 54% 61.2% Email - external third party lists 41% 66% 26% 29.6% All Email 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
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 2009 2010 2011 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 2009 Email has become a significant source of Renewals Editorial websites continue to be the dominant source of New Subs but Email 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