Magellan Media Research
Magellan principals work on a range of projects that help us better assess how media business challenges might be addressed. An analytical underpinning improves our understanding of what is happening in our core practice areas and what trends will affect publishing and media in the next few years. Research currently under way at Magellan Media is summarized here.
Planning direct
marketing efforts to optimize a publication's audience
profile
The rising cost of direct-mail campaigns has made publishers
keenly aware of the need to carefully plan circulation
efforts. However, the most profitable circulation sources
may not provide the most desirable advertising audiences,
diminishing overall profitability. Some publishers have
tried to address audience quality with one-time or external
measures, investments whose benefits have been difficult
to quantify.
Magellan has developed a model that links circulation
economics to audience value, a first effort to establish
lifetime value on the total value of a publishing customer.
We have extended this model to include evaluations of
current and potential audiences using cross-cuts of available
research, formatted to address a publication's particular
needs. This work has already been used to plan efforts
to improve audience for our clients.
Evaluating the impact of changes in the newsstand on
mid-size and smaller publishers
In the last ten years, the stability and profitability
of the newsstand channel has changed radically, making
the long-term viability of single-copy sales uncertain
for many publishers. Some larger publishers have begun
looking at changing the newsstand channel in ways that
could limit or eliminate cost-effective distribution
and sale of titles with smaller newsstand profiles.
Magellan principals have reviewed the marketplace to
explore what options might exist for cost-effective distribution
of titles outside of those published by the largest players.
This research includes modeling the current environment,
examining the systems and reporting in place and evaluating
options to improve the reliability and timeliness of
communications throughout the channel.
Selling and sharing content across platforms
Cross-platform content sharing has often been difficult
and expensive to implement. Publications that have succeeded
in streamlining cross-platform content sharing have generally
been high-frequency products with the ability to invest
in proprietary or heavily customized systems.
As with newsstand distribution, this leaves a gap among
content providers whose products are smaller or distributed
less frequently. Magellan has been examining process,
technology and operational options that could support
more cost-effective media convergence. The project will
establish the value of developing a critical mass in
a cross-platform media environment. Firms interested
in pursuing geographically focused cross-media ownership
could benefit from the results of this research.
