Digitized Editorial Builds Database Value

Folio: The Magazine for Magazine Management, August, 2000 by David Foster

There are several ways for the publisher to create revenue on the Web. For some, the publisher charges for services such as digitization of product images, production of the Web site, or maintenance of the Web site. For customers who place orders through this path, an e-commerce revenue sharing potential exists between the publisher and the manufacturer.

Although the example I have given here is from one magazine only, the idea is applicable to almost any magazine, of any size. If your publication is not yet on the path to merchandising your assets in this manner, the technologies of digitization, the Internet and marketing databases afford you an opportunity to rethink your strategy and consider ways to build the value of your brand with both advertisers and consumers, as well as to expand the financial strength of your franchise.

David Foster is President of ESI, a Morrison, Colorado-based consultancy. He can be contacted through his Web site at esicirc.com.

Getting Started: Merchandising Your Assets

1 Set clear goals and objectives for profitability and for market positioning.

2 Identify economically viable segments of your customer files, both advertisers and readers.

3 Inventory your story files and categorize articles by constellations of interest to your customer file segments.

4 List the kinds of services and revenue-generating possibilities that might be derived from the assets you have identified.

5 Flow chart the next steps required to get from where you are in the overall process to actually realizing each of the revenue possibilities.

6 Assign costs and management resources required for development.

7 Estimate revenue potentials.

8 Prioritize the program for implementation, starting with the simpler parts first and moving to the more complex, taking into account the financial considerations of investments, cashflow, profitability and risk.

9 Develop a detailed plan with a budget and timetable, and come up with a financing strategy for your program.

10 Staff the projects with leadership that can integrate editorial and marketing--the combined perspective is essential for success.