- 1. Leading Media Companiesthrough Transition Leading Media
CompaniesFinding Equilibrium through a Consumer-driven Model
through TransitionJack Griffin, President, Meredith National Media
Group | July 22, 2010
2. Business Model for a Print WorldOld ModelMagazines tell
consumerswhat they think theyshould knowCentralized,
top-downbureaucracy 3 3. Business Model for a Print WorldIron
TriangleSUBSCRIPTIONSValue driven by ad salesand
newsstandSubscriptionsgiven awayAD SALESNEWSSTAND 4 4. The Consumer
Has EscapedTraditional go-to-market strategies dont work because
they assumecustomers will stay in the channels that were designed
for themYoushould be re-thinking the core logic of your
go-to-market strategy.Harvard Business Review, November 20035 5. A
Brand New World6 6. Newspapers Disrupted; Magazines Holding Steady
Average time spent per user per year (minutes)198 195191 182 176
169158152149146142125 128127 129 129 1281261261261261252003 2004
2005200620072008 20092010 2011 2012 2013Magazines NewspapersSource:
Veronis Suhler Stevenson Communications Industry Forecast, 2009-13
7 7. Digital Ads Growing, but Money Remains in PrintConsumer
magazine publishing market forecast by component100% 80% 60% 40%
20% 0% 2005 20062007 2008 2009 201020112012 2013 2014
PrintAdver+sing DigitalAdver+sing Circula+onSource:
PricewaterhouseCoopers LLP, Wilkofsky Gruen Associates8 8. What
Business Are You Really In?Hollywood barely escaped being totally
ravished by television.Actually, all the established
filmcompaniesgot into trouble notbecause of TVs inroads but because
of their own myopia. Hollywoodthought it was in the movie business
when it was actuallyin the entertainment business.Theodore Levitt,
Marketing Myopia,Harvard Business Review, July-August 19609 9.
Whenever, Wherever and However She Wants It THEN = Channel FirstNOW
= Content First 10 10. We Help Her Create a Rich and Meaningful
LifeAcross the Subject Matter That is Most Important to Her Her
FamilyHer SelfHer Home11 11. Building Blocks for SuccessINCEN
TIVESTRUST12 12. Consumer Relationship at the Center Newsstand
SalesPrint Ad SalesSubscriptionsDatabase Online Mining
SubscriptionsProduct Sales13 13. Business Model for a
Consumer-Driven World Reorientsthecompanyaroundthecustomer
andcustomerrela+onshipmanagement
Operatesseamlesslyacrossdiversechannels
Understandsconsumerspassions Drawsprintconsumersintothedigitalworld
whereengagementcanunfold Engagesthemwithnewproductsandservices 14
14. 15 15. Kitchen Remodeling Projects (2008)Influence Motivation
(%) Needs (%) Products (%) Features (%) Style (%) Price (%)TV 68
633 1Magazine4952 54 48 43 18Newspaper58117821Home Show910666
1Radio21 000 0Personal Contact114 111 0Internet 912 14 17 20
13In-Store 95 8 1819 46 Totals100 100100100 100 100Top (2)
influences bolded in colored box.Base: 59,323 HH who did Kitchen
Projects in 2008Source: HomeSight 2008 Data Set16 16. FAMILY
PERSONAL HEALTH & HOME DEVELOPMENT WELLNESS Design Parenting
Money Nutrition DIY Education Career Exercise Entertaining Safety
Style Disease Management Cooking Celebration Beauty Caregiving
Self-Expression Entertainment Relationships Choosing A Doctor
Organization Environment Volunteering Aging Gardening Community
Self Improvement 17 17. PULL PUSHConsumer finds Content Content
finds Consumer18 18. BRANDSBHG.com Parents.comRecipe.com
Fitness.comAffinitiesFOODHOMEGARDENPREGNANCYBABY TODDLER
FOODFOODHEALTHFITNESS BIG KIDS RECIPES
SKILLSFitnessSubscriptionsBHG BHG BHGParents Parents Parents
Fitness Diabe+cLivingCer+edOnlineGardenersOnlineDiabe+c
OnlineServices Cooking Club;Cooking LivingPersonal
School&GardenSchool CareClubTrainer Club
CenterOnlineOnlineOnlineOnlineOnlineOnlineOnlineProductsStore Store
Store Store Store Store StoreExisting Planning/Development 19 19.
Critical Success
FactorsIntegrateadsalesandmarke+ngapproachInvestindigital,technologyanddatabasecapabili+esTakeriskstodiversifyrevenueAuthoronce;distributeeverywhereDevelopleadershipandculture20
20. Mobile MarketingIntegrated MarketingCore Brands 360Meredith
Womens Network Research &Consumer InsightsRetail/Brand
Licensing Video Studios Print Advantage Hispanic Ventures Database
Marketing Experiential Marketing 21 21. Next Issue Media is a
ground-breaking, newly-launched digital publishing initiative by
publishers for publishersFounding Members:22 22. 23 23. 24 24. 25
25. C.O.D.E. Create Once Distribute EverywhereSyndicationBroadband
Syndication NetworkBetter TV Show MVS broadband syndication
network75+ Stations sold including 6 of the top ten consists of
80,000 websites, 65% ofmarketswhich target women 18-54 Cable VOD
NetworkLocal Media Brands include 12 Meredith owned Parents
TVnetwork aliate Stations Network created for moms and dadsOTOs
(Cool Kitchens & Baths) Providing everything parents need to
knowBroadband Sites including: to raise a happy, healthy
family.Parents.comEditorial support from Merediths coreBetterTV.com
parents network brands, American Baby, Parents and Family Circle
MobileBetter TV Video Newsletter May 2008 Parents TV and Better TV
launched on Sprint TV Original content for My Local TV channel
Available to Sprint customers with Sprint TV service 35,000+
monthly subscriber base Network 30min Specials Examples: Ready, Set
Celebrate Easiest Holiday Party Ever26 26. 27 27. Measuring Impact:
Share of MarketMagazine Advertising Share of Market 10% % change in
advertising revenue5%5% 6%0%-4% Meredith -5% Industry-18% -10% -15%
-20%Q1 2010CY 2009Source:PIB28 28. Measuring Impact: Advertiser
Perspective In 2009 Meredith ranked #1 out of ALL media
companiesFall 2009Fall 20071) MEREDITH 1) Discovery
Communications2) Google 2) Time Inc.3)ESPN 3) Google4)Turner 4)
ESPN5)Time Inc.5) Dow Jones/The Wall Street Journal6)CBS6) CNET
Networks7)Disney 7) Cond Nast8)The New York Times 8)
Yahoo!9)Discovery Communications 9) The New York Times10) NBC
Universal 10) NBC27) MEREDITHSource: Fall 2009 Advertiser
Intelligence Reports (AIR) 29 29. Brand Footprint30 30. Measuring
Impact: Revenue Diversification Growth of Non Print Revenue from
14% to 34%% of Profit (FY05) % of Profit (FY10) 9% 5%24% 3%
86%7%66%Print* Online Broadcast Licensing* Print: Better Homes and
Gardens Magazine, SIMs and Books31 31. 32 32. Leading Media
Companiesthrough Transition Leading Media CompaniesFinding
Equilibrium through a Consumer-driven Model through TransitionJack
Griffin, President, Meredith National Media Group | July 22,
2010
