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Custom Publishing: Opportunities Abound

For B2B Publishers

An American Business Media White Paper

Sponsored by the Brand Extension Committee

Prepared byThe Publishing & Media Group

January 2003


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Custom Publishing: Opportunities Abound For B2B Publishers

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Table of Contents

Section I Introduction: What Is Custom Publishing? Page 4

Section II The History of Custom Publishing Page 7

Section III Size, Structure & Growth of the Industry Page 11

Section IV Major Trends & Drivers in the Industry Page 14

Section V Why Custom Publish? Page 17

Section VI Custom Publishing Best Practices Page 19

Section VII Custom Publishing Case Studies Page 22

Section VIII Sources & Contact Information Page 30


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Introduction: What Is Custom Publishing?


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Introduction: What Is Custom Publishing?

Although custom publishing in some form has been in existence for at least a century,only in the last decade has it gained noticeable momentum in the U.S. And while interestin custom communications has accelerated throughout the media industry, perhaps

nowhere has it become more important than in the business-to-business and consumermagazine segments.

The reasons for the rise of custom publishing, like its definition, vary depending uponwhich media segment is being considered. But while custom communications is simply abuzzword or an experiment in some media sectors, it has become an increasinglysignificant component of the product mix at the average B2B and consumer magazinepublisher.

The role of custom publishing has become even more important to magazine publishersover the past two years, as their traditional publications struggle with declining

circulation numbers and a brutal advertising downturn. These negative trends havemerely highlighted the accelerating growth of custom publishing that has been buildingfor the past 10 years. Once viewed as a feel-good supplemental business carried out atthe behest of a few core clients, the custom publishing phenomenon has spawned newdivisions within traditional magazine publishers, as well as standalone custom publishinghouses and an industry trade organization.

The groundswell of support for custom publications by corporations nationwide hasfueled tremendous growth in what has become an industry within the traditionalmagazine industry. Corporations spent nearly $20 billion on custom communicationvehicles in 2001. And while only a fraction of that figure was spent on outsourced work,industry statistics show that outsourcing is becoming increasingly prevalent, providing awealth of opportunities for independent publishers. Even the large advertising andmarketing services rollups, such as Interpublic Group and WPP, have joined the fray byacquiring private custom publishers in an effort to expand the services they provide toclients.

Add a sponsor-funded, typically no risk economic model to the picture in a day and ageheadlined by declining newsstand sales, subscriber acquisition difficulties and advertiserscrying out for integrated promotional solutions, and its easy to see why custompublishings time has arrived, said Chris McMurry, chief executive officer ofindependent custom publisher McMurry.

Custom publishing in the U.S., however, is still in its infancy. Approximately 60% of thecompanies involved in custom publishing established their in-house or standaloneoperations during the last decade, according to a recent survey by PublicationsManagement, an industry newsletter published by McMurry. The industrys tradeorganization, the Custom Publishing Council, itself is only four years old. In addition,the surveyfound that no single company dominates the industry. A handful of leadingfirms generate between $20 million and $50 million in annual revenue, while the majority


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are small in-house divisions and standalone firms. These statistics appear to reveal anenormous opportunity for B2B magazine publishers to either buy their way into themarket, or launch their own operation and get in on the ground floor of a burgeoningmarket.

While the definition of custom publishing varies even within the B2B magazine business,most publishers agree that such publications are editorial-based marketing tools used toachieve specific business objectives. Among these goals are to increase brand awareness,improve customer loyalty, cross-sell products and increase consumption.

The frequency of these publications varies, and the media used to reach the end user doas well, from magazines and newsletters to websites and e-mail. Sponsorship modelsalso vary. The most common form of sponsorship is the single-sponsor model, whichgives one client complete control over every aspect of the publication. The other, lesscommon form, is syndicated sponsorship, in which several clients share the costs andcreative control of the publication.

But while several aspects of custom publishing vary, one thing remains constant: custompublishing has become a strong tool for advertisers and marketers to reach narrow targetaudiences. And if expectations are met, a long-lasting and lucrative relationship candevelop.


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The History of Custom Publishing


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The History of Custom Publishing

Most custom publishing experts believe that farm equipment maker John Deere firsthatched the idea of using a custom publication to cultivate relationships with customers.

The publication, Furrow, was originally published in 1895, and its still in circulationtoday.

Back in 1895, John Deere was a growing agribusiness on the cusp of a bull market infarming after a decade of market turbulence. The company was facing increasedcompetition, while at the same time experiencing a management transformation, whenfounder John Deere stepped down as president and his son took over. Deeres son,Charles, was known as a shrewd businessman with a knack for marketing and a penchantfor new ideas. His idea to open up regional marketing centers across the country to servelocal dealers is considered a landmark in American business.

Then in the mid-1890s, L.B. Kuhn, who served as John Deeres one-man advertisingdepartment at the time, concocted an idea to produce a quarterly publication that wouldhelp solidify the firms relationships with local dealers, who, in turn, would use it toexpand their client bases. The publications mission then, as now, was to present usefulinformation about modern farming methods, introduce new agricultural technology andencourage the purchase of John Deere products through advertising. Kuhn was left withthe unenviable task of selling the idea to company management and the firms localdealers.

The harder sell may have been to the dealers, who were being asked to submit mailinglists of their customers, as well as pick up part of the distribution costs, according toAndrew Markwart, current managing editor of the Furrow. All the dealers wereindependent back then, and they were unaware of any other companies doing such a thingat the time. They had to be convinced that this new publication had real value,Markwart explained. To do this, Kuhn would have to court dealers one at a time.

What followed was a nearly two-year promotional effort that included direct mail andface-to-face promotions aimed at signing up a sufficient number of dealers to warrant afull-scale launch. The Furrow was in full swing by mid-1897 and it would double andredouble circulation during the 20 years that followed, which would mark the mostprosperous time in history for American farmers.

At its peak in the first decade of the 20th century the Furrow reached a circulation ofalmost 5 million in North America. Since that time, of course, the number of farmers hasdeclined substantially, but the Furrow still claims a circulation of 1.6 million worldwide(685,000 in North America) through 31 regionalized editions.

The Furrow has become an institution in U.S. agriculture. Its been read by generationsof farmers, Markwart said. As the market has shrunk over the years, we have found iteven more important to capture the attention of those readers. Although our mission


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remains the same, weve worked hard to create regionalized editions, make thepublication more photogenic and, generally, create a pleasing environment for admessages to be there.

The success of the Furrow caught the eye of other major corporations in the first half of

the 20

th

century. The large automobile manufacturers were quick to follow John Deereslead with custom publications of their own, as that business grew at exponential ratesthrough the 1950s. Most, if not all, of the automobile conglomerates today produce aseries of custom publications for their dealers and customers. The major airlinesfollowed suit with in-flight publications in the 1960s and 70s.

John Deeres success with its publication really launched this business, said JohnCaldwell, a custom publishing consultant and former industry executive. John Deerewanted to build and maintain relationships with its dealers, and the dealers wanted to dothe same with the farmers. This is how it still works today, whether youre talking aboutthe B2B or B2C markets.

Business-to-business and consumer magazine publishers reportedly didnt test the watersof custom publishing until around the late 1960s. Traditional magazine publishers likeMeredith and independent publishers like Putman are recognized as pioneers in this realmbecause they realized that not only could custom publications fortify relationships withcurrent advertisers, but they also could open up entirely new relationships with non-advertisers.

Only a few companies early on understood that you could have a profitable relationshipwith an advertiser even if you didnt have them as a traditional client, said RexHammock, president of custom publisher Hammock Publishing.

Most of the leading corporations today, including General Electric, Home Depot andSony, produce custom publications for employees, dealers and/or customers. In addition,many of these corporations use other custom communication vehicles, such as websites,videos and in-house television networks, to reach the same audiences. But while almostall custom publications were produced in-house by corporations a couple decades ago,about one in 13 custom publications were outsourced in 2001. According to McMurry,this trend is accelerating, which offers B2B publishers a growing opportunity to eitherlaunch or expand custom publishing operations.

Although it appears that a majority of the custom magazines published today are on theconsumer side, my sense is that B2B publishers tend to be closer to and moreknowledgeable of their markets, Caldwell said. This could give them an edge as theyforge into custom publishing.

The edge Caldwell mentioned can take many forms, which will be discussed in latersections of this paper. The key is to keep your eyes open and dont limit yourself to onecontact, division or subsidiary at a given advertiser or non-advertiser client when seekingnew business opportunities.


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In an age when customers rely on different forms of media to help them perform theirjobs effectively, it is important to integrate messages across multiple media platforms.Doing so has essentially become the "holy grail" of B2B marketing. For manycompanies, this is possible through custom publishing that can provide an effective

platform to achieve the following objectives:

Gain third-party credibility

Rise above noise levels

Manage editorial content

Choose who receives the magazine

Provide original content for your site

Educate your sales team, your clients and your prospects

Maximize marketing dollars across multiple media platforms

For the publisher, custom publishing is not just a great way to create new revenue

streams, its a great way to get close to your clients and your potential clients, notedJohn Blatnik, vice president of business development at custom publisher Putman Media.Accountability and trust have become very important factors within corporations inrecent years. They want to work with firms that are familiar with their needs and wants.


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Size, Structure & Growth of the Industry


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Size, Structure & Growth of the Industry

Spurred by a number of trends that will be discussed in the next section, spending oncustom publishing over the past 10 years has grown at exponential rates, although growthcooled off in 2001. But even though spending contracted in 2001, experts see the

slowdown as a temporary respite, and the available data support that theory.

Total spending on custom publishing by U.S. corporations reached approximately $20billion in 2001, roughly half the combined advertising and circulation expenditures ontraditional B2B and consumer magazines for the year. Corporations spent about $14billion of that total on the production of custom publications, while the other $6 billionwas spent on distribution, according to Publications Management. Of the $14 billionspent on the production of custom publications, only $1 billion went into the pockets ofpublishers. This data, again, points to the enormous opportunity that exists for B2Bpublishers to expand or create new custom publishing revenue streams. In addition to the$20 billion spent on producing and distributing custom publications in 2001, the Custom

Publishing Council estimates that another $700 million was spent on advertising in thesepublications during the year.

While total spending on custom publications declined 18.8% in 2001, these publicationscommanded a larger share of the advertising and marketing budgets at corporations.Custom publications accounted for 13% of the advertising and marketing budgets atcorporations in 2001, up from 11% the previous year, according to PublicationsManagement. This data indicates that although spending on custom publishing declinedin 2001, it didnt decline as fast as corporate expenditures on magazine advertising.Spending on custom publications surged 34.4% in 2000.

Despite the slowdown in 2001, roughly 40% of the companies surveyed by PublicationsManagementreported that they plan to increase spending on custom publishing in 2002.Meanwhile, many of these same corporations have significantly reduced their magazineadvertising expenditures for the second consecutive year. The average corporation spent$500,000 on custom publishing in 2001, and hundreds of new companies began customcommunication programs during the year.

The reported increase in custom publishing expenditures for 2002 contrasts sharply withprevious recessionary periods, when spending on custom projects was the first to getslashed, McMurry said. The new trend appears to be that the more difficult theeconomic climate, the more likely companies are to spend money on tailored marketingvehicles, which allow them to control the content and the environment of theirmessages.

About half of all expenditures on custom publishing in 2001 came from the combinedhealthcare, technology and finance sectors, with healthcare poised to significantlyoutpace the other two in 2002. McMurry estimates that there are at least 50,000 custompublications produced each year, and that the average publication is a quarterly magazinethat grosses $478,000 annually. The fastest-growing type of custom marketing tool is the


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e-publication, which accounted for 17% of all custom vehicles in 2001, compared with3% in 1999, according to Publications Management. Newsletters are the largestcategory, accounting for 53% of all custom publications in 2001, although that was downfrom 63% in 1999. Custom magazines comprised 24% of the market, a fairly stableshare over the two-year period, while tabloids accounted for 6%, down from 11% in

1999.


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Major Trends & Drivers in the Industry


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Major Trends & Drivers in the Industry

The growth of custom publishing is being driven by many factors, both primary andsecondary. These factors are impacting custom publishing on both the client andpublisher side of the business.

Perhaps the driver with the most impact on both sides of the business is the growing useof various customer relationship management (CRM) tools to build loyalty amongcurrent clients. These tools, such as Internet and telephone response systems that feedcustomer information into databases, have revolutionized marketing techniquesthroughout American industry. These technological advances have made it much easierfor corporations to pinpoint customer characteristics and buying habits, as well as tointerface disparate information to formulate more effective marketing strategies.

While customer retention has always been a primary goal of custom publishing, in morerecent years new technologies have allowed corporations and publishers to use the tactic

to generate new business. For corporate, traditional and independent custom publishers,new technology can be used to better target potential clients at the corporate level and atthe divisional level.

Whether you know it or not, all of your clients and potential clients are doing custompublishing in some way, McMurry said. The trick is getting in touch with the rightpeople. Often times, one division of a large company has no idea what another one isdoing. In addition, your contacts at a company may not be the same ones involved incustom publishing. So, expand beyond your current contacts and youll increase yourchances for success.

In addition to the emergence of CRM tools, there is a growing desire among U.S.corporations to communicate their messages directly with customers and to control theenvironment through which those messages are delivered. Custom publications also havebecome much more sophisticated in their look and content, as publishers strive to providerelevant and actionable information to the target audience, while avoidingcommunicating in ways that are overtly promotional.

Corporations are outsourcing custom publishing activities at a growing rate, which isfueling the growth of both independent and traditional custom publishers. As mentionedpreviously, only about 8% of corporate custom publishing is outsourced, but thatpercentage has grown steadily as the sophistication and quality of custom publicationsimproves. And this trend is likely to continue.

There is a lot of opportunity for custom publishers in both the B2B and B2C markets,noted Carroll Dowden, president of Dowden Health Media. We got into this businessabout 10 years ago, and one thing Ive found is that this business is often times a functionof your creativity and salesmanship. This isnt a high-cost entry type of business. Youneed to dedicate resources to the effort, and get to know your clients and potentialclients.


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These trends, according to industry experts, point to a huge opportunity for B2Bpublishers because they already employ a controlled circulation model, and they tend tobe closer to their markets than consumer publishers. This has led more B2B publishers topursue custom publishing ventures with their advertisers and non-advertisers, although at

a slower pace than their consumer counterparts. Both B2B and consumer publishers,however, have been more aggressive in pursuing new business over the past two years astheyve watched their advertising revenues dwindle and circulation numbers decline.

Were reading with more frequency about traditional magazines going off rate card,cutting rate bases and supplementing paid circulation with controlled copies, McMurrysaid. Custom publishing is suddenly looking like an innovative approach, wherepublishers shift more of the financial burden from consumers to corporate clients, a smartbusiness practice long since the backbone of custom publishing.

Custom publishers, and even some traditional magazine executives, expect the lines

between traditional and custom publishing to get even blurrier in the coming years, asconvergence begins to break down the walls between church (editorial) and state (sales).While there are some custom publications sold on U.S. newsstands, convergence on amonumental scale is already well under way in the U.K. Seven out of 10 magazines onthe newsstand in the U.K. are considered to be custom publications, or customerpublications as theyre referred to in that country, according to the Custom PublishingCouncil.

Hammock estimated that the U.S. is about 10 years behind the U.K. in custompublishing, due to a more mature English market there, as well as wider acceptance of thepractice on the part of publishers and consumers. Custom publishing has been moreorganized for a longer time over there, said McMurry. Theyve had a tradeorganization priming the pump for many more years than we have.


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Why Custom Publish?


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Why Custom Publish?

Besides the rising corporate demand for custom publishing and the growth opportunitiesthat trend offers B2B publishers, there are a number of other reasons why both publishersand advertisers should look closely at custom publishing.

The reason most often cited is to form strong customer loyalty through the establishmentof trust and credibility. This goes for publishers and advertisers alike. Custompublishing is all about customer relationship management, said Diana Pohly, presidentof custom publisher Pohly & Partners. Trust and credibility are probably the mostimportant attributes in building brand loyalty and making purchases. And magazinesrate high in that respect with consumers. According to a recent survey by AppliedResearch and Consulting, magazines deliver attributes customers want most in a brand,including trustworthiness and personalized attention.

For the B2B publisher, custom publishing can also provide a competitive edge, given the

amount of untapped business there is in the marketplace. It could become a necessity inthe coming years, as advertisers search for innovative ways to market their wares andlook to B2B publishers for custom publishing ideas. The average corporation in the U.K.now spends 25% of its advertising and marketing budget on custom publishing,according to Publications Management.

In addition to customer retention, recent surveys suggest two other selling points thatB2B publishers can use in their pursuit of new custom publishing business. First,advertisers view magazines are superior to television, newspapers and radio incommunicating marketing messages to special-interest targets and building brandawareness, according to a survey by the Magazine Publishers Association. Second, themore money companies spend on magazine advertising, the more effective theiradvertising in other media becomes, a survey by Television Awareness found.

But perhaps the most compelling reason to custom publish is the control thesepublications offer marketers. The ability to control every aspect of the publication, fromthe look and message to the frequency and target, is a driving force in this business thatbecomes even stronger when the aforementioned survey data is taken into account.


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Custom Publishing Best Practices


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Custom Publishing Best Practices

Outlined below is a list of best practices that were gleaned from a poll of leading custompublishing experts and executives. While some of these practices may be more importantthan others, they are not listed in any particular order.

The Dos

1. Sell the client on the idea of custom publishing, then position your company as thego-to firm when theyre ready to launch. The choice to launch a custom publishingproject is really the clients. So, you want to sell them first on the idea of doing custompublishing, Pohly said. Then you want to sell them on using your firm to do the project.Hopefully, that will put you in the pole position when the clients ready to move.

2. Try to get long-term deals. The best way to build a custom publishing venture is tosign multiple-year deals with clients. This is very important. You want to shoot for at

least a two-to four-year window, said McMurry. This will give you time to seek outother clients.

3. Offer to develop a business plan up front and charge a fee for this service. Severalcustom publishers reported they have had potential clients who took months to make thedecision they really didnt want to custom publish. Waiting that long is time-consuming,costly, and can siphon resources away from pursuing other prospects. Make sure a timeline is in your business plan.

4. Establish expectations up front and develop measurement tools to ensure they aremet. Almost every publisher interviewed for this article mentioned this as a bestpractice. You cant deliver on expectations if you dont know what they are up front,said LeDonna Buschmann, director of custom publishing at Primedias business-to-business group. And if you dont have measurements, how are you going to knowwhether the project was successful or not?

5. Agree on pricing before work begins. In addition to establishing expectations,measurements and pricing, custom publishers should also determine whether they havethe staff in place to do the job agreed upon. These practices are all important becausecontingencies will arise during the course of an engagement and you want to be prepared.

6. Institute a regular review process. The practice of meeting with a client weekly,monthly or at some other predetermined intervals will ensure that expectations are beingmet and that measurements are effective. It will also provide regular contact with theclient throughout the process.

7. Always assign an account manager as the primary contact on any project. Ideally,you want this person to have a strong marketing background and a good understanding ofcustom publishing. Client service and marketing expertise gives you an edge in thisbusiness, Caldwell noted.


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8. Alert the customer that if they go with the syndicated option over the single-sponsor model, they will lose full creative control. As explained previously, asyndicated custom publication means theres more than one sponsor or advertiser, whichoften means the creative direction, as well as the cost, will be shared in some way by the

participants.

9. Advise your editorial team that the customer has full control over every aspect ofa custom publication. This is important because editors are used to a separation ofchurch and state. In a custom publishing project, the editorial, many times, is anextension of the advertising.

10. Be as flexible as possible. Remember, in custom publishing the customer is King.Do your best to accommodate their demands.

The Donts

Outlined below is a list of practices to avoid when custom publishing, which were alsoculled from a poll of industry experts. Again, they are not listed in any particular order.

1. Dont assume custom publishing is an easy sell, even to a good client. Custompublishing typically includes a slower sales process, longer lead times and unusualproduction schedules. But dont be deterred by this because there is a lot of opportunityout there. Whether you know it or not, all of your clients are custom publishing in someway, McMurry said.

2. Dont limit your custom publishing business to current clients. Industry expertsurge publishers to expand their universe of clients as much as possible. Even within acurrent clients firm there may be a key decision maker in another part of the companythat you were unaware of. Do your due diligence.

3. Dont promise you can do a custom publishing program at no out-of-pocket costto the client. This is a common mistake, according to the experts. The better option isto convince your prospects to fund a custom publishing program 100%, McMurry noted.This is the harder initial sell, but it will pay off in the long run. And it solves theproblem of dealing with an advertising shortfall to cover costs.

4. Dont be afraid to charge a premium price for the value delivered. Custompublishing allows your client to tailor an effective marketing tool to a targeted audiencein order to increase sales. The process of creating a custom publication is different andmore time-intensive than developing a traditional magazine. Therefore, its importantthat you sell the value you are delivering, while making sure youre prepared to covercontingencies as they arise. You always have to prove the value of your program,Blatnik said. Realize that you will be working on that from the beginning to the end.


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Custom Publishing Case Studies


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When a client and a custom publishers expectations are clearly identified at thebeginning of a project and these guidelines are followed throughout, successfulpublications are produced. The following case studies are good examples of custompublications that have been profitable for the publisher as well as meeting the businessobjectives of the client.

Medium Magazine

Publisher Hammock Publishing

Contact Rex Hammock

e-mail [email protected]

About 10 years ago, Hammock Publications was called upon to revamp a custom title inthe trucking industry. For more than 40 years, Pure Oil Company had been distributingthe magazine to truck drivers as they passed through their truck stops. The title,RoadKing, was a digest sized magazine with 6 issues a year. It carried very little advertising,

but it targeted truck drivers and was viewed by Travel Centers of America (the currentcorporate brand) as a marketing tool. The objective of the publication was to get driversto come by the stops more often, stay longer and purchase more goods and services. Atthe same time, they wanted to create something the driver would enjoy reading andreceiving.

Hammock assumed the role of the readers advocate and searched for an un-servededitorial niche that would be of value. Ultimately, Hammock was able to create aproduct far more in touch with the trucker, which ultimately encouraged them to comeinto the truck stops more often.

On the business side of this project,Road King enabled Travel Centers of America tomeasure the fuel purchases from their affinity club members. TheRoad King title wasthe first measured pick up rate custom publication, in addition to the traditionallyaudited circulation. In the end, the publications pick-up rate grew and its measurableaffinity club fuel purchases have surpassed objectives.

Medium Custom Electronic Newsletter

Publisher Advanstar

Contact John Payne

Phone/e-mail [email protected]

While Advanstar has generated dozens of custom print projects over the years, producinga custom e-newsletter was a new idea for them. It all started at a client/agency meeting,where Advanstar offered-up the idea of producing custom e-newsletters. Thecommunications director and account supervisor had just come from a 3-day marketingsymposium regarding online marketing and were very interested in developing e-newsletters for their three primary markets. Since Advanstars publications covered thetarget markets and had active Web sites, they were uniquely positioned to meet theclients needs. At that time, one publication was already producing a weekly e-


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newsletter. If Advanstar could produce a regular e-newsletter, it seemed logical we couldproduce a custom newsletter.

Within two weeks the publisher had developed a prototype e-newsletter and micro sitefor the client/agency to view. They delivered a basic outline of what we should do, what

they needed to do and came up with a schedule. This helped Advanstar focus on theirexpectations and gave an idea of the resources it would take to deliver this each month.The time it would take to produce this project was the key to pricing it.

After looking at different scenarios, Advanstar wound up charging the client a flat fee todevelop the "architecture" for the project, a simple text based e-mail with story leads andlinks to the site that contained the newsletter. When one clicked on the link it lead themto the e-newsletter. Advanstar built this to fit all three newsletters.

Advanstar provides delivery stats within 24 hours to the client and detailed reports once amonth for all newsletters. This gives the client and agency a clear picture of what took

place.

From Advanstar s perspective, the keys to getting into the custom e-newsletter businessare:

1. Having a talented Web content/technology person on staff. This person is our pointperson and our most valuable player. This person develops content, works with theclient and delivers monthly reports.

2. Having a cooperative and flexible IT/internet team. Advanstar relied on them todevelop the "architecture" for this project and work with us every step of the way toensure we delivered what we promised our customer.

3. Having a cooperative magazine editorial team. They are key in content development.4. Having a patient and cooperative client. Given this new medium, they need to be part

of the process, especially working with us to meet deadlines.5. Having a good e-mail database. The greatest content can only get you so far.

Developing and maintaining an up-to-date e-mail list is key.6. Having a contract that spells out everything.

Like most successful custom print projects, content is critical. If you have good content,you'll get good results. Poor content gets deleted and the chances of getting that readerback are limited.

How is Advanstar doing? They just renewed their contract with this client for anotheryear.


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Medium Catalog/product guide

Publisher Primedia

Contact LaDonna Buschmann


PRIMEDIAs custom publishing division recently created a catalog/product for atechnology advertiser, Leitch Technologies. This product was modeled after the oldSears catalogs where one side was advertising one thing and when the publication wasturned over something entirely different appeared on the flipped pages. This guide wasproduced as a special buying guide twice a year. In terms of printing and postage rates,this guide was exceptionally efficient as it was ultimately joined at the spine of theexisting catalog. Not only was the out-of-pocket cost for this approach substantially lessfor the publisher than something mailed out on its own, but its shelf life was longer aswell.

Broadcast Engineering, the 44-year-old business-to-business magazine owned byPrimedia Business Magazines & Media, is the must-read among engineers andmanagement for the latest technological information in the television industry. The keytrade show serving the television industry is the National Association of Broadcaster'sShow and in 2002 Primedia Business sales reps focused a sales effort specifically towardclients exhibiting at the NAB to run their product brochures inBroadcast Engineeringmagazine.

The pitch paid off, with Leitch Technology Inc. running a 164-page product guide on thebackside of the June 2002 magazine, coinciding with the NAB show coverage. Thecreative twist to the project is that to get to the Leitch product guide, all you have to do is

flip theBroadcast Engineering issue over and turn it upside down. The product guide isbound toBroadcast Engineering. There was also a 15,000 overrun and an onlinecomponent to round out the package, which was funded by collateralbudget, not advertising budget.

The customer delivered the finished product guide on disk, and the sales rep made sure toallow extra time to coordinate the project with production. The client was very pleased toreachBroadcast Engineering's key decision-making readers in the same issue with thepublications editorial coverage of the NAB show. The product guide will enjoy a longshelf life as well as a strong association with the leading publication in the industry.


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Medium Service Catalog

Publisher Farm Progress Publishing Services

Contact Dave Wilson


Farm Progress entered into the custom publishing business in 1992. It was a naturalextension of our marketing services division that offers database management and listservices. The publishing resources were already present internally within Farm Progressowned state and regional farm publications.

Case IH was Farm Progresss first client. Farm Progress produced a quarterly parts andservice catalog that featured a magalog approach. Farm Progress brought editorialservices into the mix to position the Case IH dealer as the expert in offering parts andservice advice for maintaining farm equipment.

In 1994, the National FFA (Future Farmers of America) Organization approached FarmProgress on publishing their member magazine. FFA is a non-profit organization thatfocuses on the development and growth of agricultural curriculums, primarily at the highschool level throughout the U.S. Current membership is 470,000 and growing each year.There are currently over 7,000 schools (called chapters) that participate in the FFAprograms in the country.

When Farm Progress was awarded the business, it was the first time in over 65 years ofexistence that FFA took the project out-of-house. The publication was given a huge facelift in redesigning the graphics to appeal to a teenage audience. Bright colors, more sub-headings to better draw the readers into the articles and fun departments were among

some of the changes that occurred. Farm Progress also repositioned the magazine as amember benefit publication as opposed to an association magazine. Many of the FFAstate associations have 8 to 16 page versions that are locally focused editorially. FarmProgress manufactures these inserts for the states and selectively inserts the sections intothe appropriate state copies.

It was a complete turnkey assignment. Farm Progress also sells all of the advertising forthe publication in a revenue sharing arrangement. It has been a rewarding project forFarm Progress and their relationship with FFA is stronger than ever today.

Farm Progress currently has twelve custom publishing clients where the scope of the

relationships ranges anywhere from a turnkey service to editorial to printing services. Inmany cases, Farm Progress offers a more cost-effective solution in distribution byinserting the piece into our state and regional magazines. Others prefer stand-aloneproducts. Custom publishing is not a one shoe fits all service. Every client has theirown unique approach to marketing their products and services and corporate culture alsocomes into the mix.


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Medium Pre-show newspapers

Publisher Allured Publishing

Contact Nancy Allured


Allured publishes pre-show Newspapers for trade show organizers. Some trade shows inthe industry are trying to increase their attendance so Allured offers a pre-shownewspaper service. Allured produces and sells the content for a pre-show newspaper andthe show organizer generates free publicity and increased visibility without any effort.They provide the logos, a letter from the show organizer, and the list of exhibitors,schedule of events, logistics, etc. Allured fills in the rest. This provides the magazinewith increased revenues and the show organizer with increased status and attendance.

The benefits to the publication are increased revenues and status of being associated withleading shows. Once you do one, the process is duplicated to add additional shows tocreate better efficiencies and greater revenues.

Allured also creates tradeshow newspapers under their custom publishing umbrella.Allured Publishing produces two newspapers a year for industry tradeshows. They puttogether a pre-show newspaper for the industry to inform them about the up-comingshow. They do this with the tradeshow owner and take all the financial risk, developingthe content, selling advertising and mailing six weeks prior to the tradeshow. In 2003Allured is hoping to expand this to a third show newspaper.

Medium Integrated media

Publisher Putman Media

Contact John BlatnikPhone/e-mail [email protected]

Putman creates media services and solutions that make a difference to customers and thecommunities served. Putman content developers (editors) guide users of our magazinesand web sites to better decisionsdecisions which help them run their businesses moreprofitably and safely. Our account executives and publishers work with our customers tocreate unique and integrated media solutions that aggressively build brand equity.

With eight core magazine properties, a vast array of newsletters, annuals, conferences,Web products and an extensive custom publishing business, Putman Media is a leader in

providing integrated solutions for B2B marketers. One example isA-B Journal forRockwell Automation. This 5-times a year publication targets Rockwell Automationcustomers, prospects and partners who are primarily engineers and technicians workingwithin or for manufacturing companies.

The clients objectives were to be an independent voice that acts as a bridge spanning thecommunication needs of Rockwell Automation (and its partners) on one side and theinformation needs of readers (proven or potential customers of Rockwell Automation) on


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the other. The primary goal was to create useful and interesting publications and Websites that demonstrate technical solutions for end users and OEMs covering technologiesand products including: PLCs, I/O modules, communications networks, sensors, interfacedevices, scanners, machine vision systems, CNCs, logic components, industrialcomputers and software.

In terms of results, Putman Media conducts a yearly readership survey for A-B Journal.This years survey was e-mailed to 8,945 names from the subscriber list of A-B Journaland 989 responses were received. Some of the findings were that:

Ninety percent reported using it to learn about new equipment and 20% to justifythe purchase of new equipment.

Ninety seven percent of respondents have a good to excellent impression of A-BJournal.

Six of ten respondents spend half an hour or more reading a typical issue of

A-B Journal.

2.5 persons, including the subscriber read the average copy of A-B Journal.

Another project wasDemand Solutions, a semi-annual producedfor DemandManagement. The target for this magazine is to reach Demand Managements customerbase, primarily line-of-business manufacturing management involved with planning andscheduling. In addition, Demand Management reaches potential customers throughmailing toAlchemy Magazine readers. Its objectives were to showcase DemandManagements products and services to the target audience by executing a 24-page, 4-color magazine

Readership survey results sent out with the premier issue of Demand Solutions broughtback positive results:

Eighty six percent of respondents rated it good to excellent. Of those who remembered seeing the premier issue, 45% began reading it, 30%

glanced through it and 35% read the entire insert.

Close to 50% of respondents said they read the entire magazine.

Medium Directories

Publisher Media Ventures, Inc

Contact David Persson

e-mail [email protected]

Media Ventures, Inc., a Norwalk, Ct. based custom publisher, came into being in 1985following the breakup of AT&T into the regional Baby Bells. MVI helped the telcos andindependent directory publishers realize that, to be market specific competitive, theyneeded to add additional features or enhancements to their telephone directories in orderto drive up usage. MVI started with one client and has grown to be the largestindependent publisher/supplier of directory enhancements. These include: maps,community pages, specialized sections (i.e. healthcare guides), restaurant guides, etc.


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This year, MVI will produce over 15,000 pages of telephone directory enhancementsalone.

Realizing that growth in the directory business was limited, MVI, over the past severalyears, has branched out to produce community guides, maps, and directories for

chambers of commerce, national realtors and travel and tourism authorities. In addition,MVI produces industry specific annuals and publications, and a high profile network ofNational Park guides supported by national advertising. They are also currently activelyconsidering two ventures: regional shopping guides, and, a regional boating publication.These all, to varying degrees are/will be line extensions of what MVI already does,leveraging their in-house talent and resources.

MVI now has the capabilities to accomplish all aspects of a custom publishingopportunity: ad sales, editorial (writing through fact checking), graphic design,production, printing, and, distribution.


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Sources & Contact Information


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Overview of The Publishing & Media Group

The Publishing & Media Group (P&MG) is a full-service strategic and process designconsulting firm that delivers innovative solutions in all dimensions of printed, electronic

and digital media with particular focus on consumer magazines and businesspublications. The firm was founded by Dan McNamee in 1979 and is based in New YorkCity.

P&MG is distinguished by its professional staff, all of whom gained significantexperience in the media industry prior to becoming consultants. The engagementsP&MG conducts for its clients span virtually all media and address key strategic andoperational issues facing todays media companies.

For more information on P&MG, contact Ed Padin at 212-897-3150.

Sources & Contact Information

John CaldwellCustom Publishing Consultant115 Atlantic AvenueMarblehead, MA 01945781-639-9665

Dowden Health Media110 Summit Avenue

Montvale, NJ 07645201-391-9100www.dowdenhealth.com

Hammock Publishing, Inc.3322 West End AvenueSuite 700Nashville, TN 37203615-690-3456www.hammock.com

McMurry Publishing1010 E. Missouri AvenuePhoenix, AZ 85014602-395-5853888-McMurrywww.mcmurry.com

Pohly & Partners27 Melcher Street2nd FloorBoston, MA 02210617-451-1700www.pohlypartners.com

PRIMEDIA Business Magazines & Media

7900 International Way, Suite 300Minneapolis, MN [email protected]

Putman Media, Inc.555 W. Pierce RoadSuite 301Itsaca, IL 60143630-497-1300www.putman.net

Documents

Costum Publisher