Future’s chief exec: “Shedloads of companies are losing shedloads of money” online
Future’s chief executive Stevie Spring claims that magazine publishers are “burning cash” online, although she admits that the “proportionality of reach online is massive compared to print”.
Speaking at MediaTel Group’s ‘Future of Consumer Magazines’ seminar yesterday, Spring said publishers have a “different relationship” with online consumers as they use magazine sites to carry out “specific searches”.
“Online is about reader choice,” she said. “The content is very different compared to print.”
However, Spring also revealed that Future currently spends 30% of its pre-tax (net) profit on digital, demonstrating its commitment to its online offering.
At present, Spring said that Future’s online portfolio attracts a significant 23 million unique users per month, compared to a total circulation of just 5 million for its print titles.
However, despite this large gap, Future only generates 25% of its advertising revenue from online.
“Digital is by far the fastest growing segment,” she said. “However, Future’s web strategy is about specific pillars and strict verticals.”
Fellow panellist, Evelyn Webster, IPC’s newly appointed chief executive, claims that her web strategy is completely consumer-focused.
“One size definitely doesn’t fit all [in terms of online strategies] but for us it’s all about consumers, content and brands. It’s a very powerful took and it’s about leveraging direct relationships with our consumers,” Webster said.
Media journalist Ray Snoddy agreed that online should be aimed at building “brand identity and consumer loyalty”, however, he believes that due to the tactile nature of the product, magazines “are just not the same online”.
Sport magazine’s managing director, Greg Miall, added: “It’s important to get the core product right first. There are opportunities online but it’s just a brand extension of the magazine.”
However, from an agency point-of-view, Carat’s press director, Dominic Williams, said that “advertisers want to see cross-platform packages so online is very important from that perspective”.