The WORST-CASE SCENARIO Survival Guide for B-to-B Magazines

Folio: The Magazine for Magazine Management, May 1, 2003 by Michael Learmonth, Geoff Van Dyke

Byline: MICHAEL LEARMONTH AND GEOFF VAN DYKE

Unless you're starring in a Vin Diesel action movie, knowing how to leap from a moving car, treat a bullet wound, or win a sword fight probably doesn't feel like must-know information. Until, of course, someone suddenly shouts, "En garde!"

Life is full of sharp, unexpected turns, and as the authors behind The Worst-Case Scenario book series point out, "You just never know." With that caution in mind, they fashioned a guide to help the average Joe survive dire situations. Which got us thinking: Wouldn't it be great if publishers had a similar handbook? After all, business-to-business publishers have seen their share of distress lately.

First, the Internet bubble burst. Then the tech market imploded, and the stock market sank. Consequently, b-to-b publishing "went into the first quarter of 2001 with negative numbers for the first time since 1992," says Gordon Hughes, president and CEO of American Business Media. Next, terrorists attacked, a string of corporate scandals froze marketing plans across the economy, and corporate image advertising was largely halted. Ad pages and revenue went into a tailspin - followed by extreme cost-cutting, layoffs, and magazine closings. Then, just when economic indicators showed we might be out of the woods, war broke out in the Middle East. Talk about a string of rotten luck!

Despite the current geopolitical turmoil, many analysts expect a modest ad spending surge in the third and fourth quarters as marketers spend what remains of their 2003 budgets. But if history is a guide, the trade press will be the last to feel economic recovery. "B-to-b goes down first and comes back last; that's been the tradition since the '70s," says Hughes. To help publishers survive whatever additional challenges may lie ahead, Folio: talked to dozens of experts, thought leaders, and vets of crisis situations. Here are their instructions for saving life, limb, and company.

* HOW TO SURVIVE AN INTERNET BLACKOUT

Many advertisers are still skittish when it comes to buying banner ads or other online offerings. But you may be able to appease the biggest skeptics by guaranteeing results with a money-back-guarantee. Sounds bold - okay, desperate - but Forbes.com tried it anyway, and the results have been amazing. AT&T, Samsung, Acura, and Bearing Point are now advertising with the business book's Web site, thanks to its "Brand Increase Guarantee." President Jim Spanfeller points out that six months into the experiment, he's written no refund checks. Not a one. Web advertising became the dog of the dot-com heyday due to poor click-through rates. But Spanfeller believes there are other metrics that are just as measurable. Since he knows who's been exposed to what ad - and how frequently - those Web users can be surveyed to discern if the ad had any effect. The survey, conducted by a third-party research company, measures brand awareness, brand favorability, and purchase intent. So far, those exposed to ads on Forbes.com have reported an increase in at least one of the three - without clicking.

* HOW TO AVOID BEING HIT BY JUST-IN-TIME AD SPENDING

Can't get advertisers to commit? Stop selling ads. Start selling solutions. Sounds like trite marketing-speak, but by selling comprehensive answers - instead of just ad pages - you'll convince advertisers to stick with you, not the competition.

* Help advertisers reach a new market

When Millennium Hotels wanted to increase its share of business travelers from the entertainment industry, VNU Business Media showed it the way. The hotel chain was already reaching corporate travel agents in VNU's Business Travel News, but publisher Louis Magliaro convinced the company to go to the travelers themselves - in Billboard and The Hollywood Reporter. To sweeten the deal, VNU gave Millennium the exclusive right to distribute the "Billboard Bulletin," a daily fax blast, to the hotel's entertainment-industry guests, and VNU created a seminar for record-label travel managers and even hosted the event at the Millennium Broadway to boost the New York City hotel's profile.

* Help design and launch new products

Penton's New Equipment Digest integrates itself into its advertisers' media buys by helping with R&D. The magazine conducts market research, field testing, and educational seminars among its controlled-circ readership. After the client rolls out a new adhesive, motor, or other production-floor widget, Penton offers sales support and order-fulfillment services. "Our readers are at the center of the buying process," says publisher John DiPaolo. "We're not just another magazine on their media list; we're a true marketing partner."

* HOW TO FEND OFF MARKET BUBBLES

If something appears too good to be true, chances are it is. But when Internet-fueled VC dollars started a spending frenzy among New Economy titles, most publishers were happy to go along for the ride. Not CMP Media's VARBusiness. The 200,000-controlled-circ magazine serving computer resellers was chugging along when the e-commerce wave hit and caught the mag in the undertow. The Industry Standard and eCompany Now quickly launched, while Upside and Red Herring repositioned to soak up the enormous IT ad spending. To make matters worse, Dell Computer was showing the world that the IT industry didn't need middlemen (the VARs, or value-added resellers); it could sell its wares to the market directly. Ouch.