After close to 80 years of history as a print publication, Newsweek is going all-digital. The iconic weekly current affairs magazine will publish its final print edition on December 31, according to Tina Brown, editor-in-chief of The Newsweek Daily Beast Company.
Brown’s decision, which doesn’t come as a complete surprise given owner Barry Diller‘s announcement that the glossy was unsure of its future as a weekly publication in July, was brought on by the current print advertising climate and how Americans consume online news. While many print journalists and true magazine enthusiasts are grieving over Newsweek‘s decision, it’s an undeniably smart business move. With Newsweek set to be all-digital everything early next year, let’s take a closer look at what the magazine stands to gain from their recent business shift:
More Money & Less (Advertising) Problems
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Brown’s announcement, she noted the challenges print advertising posed for the journalism business as a whole. “This decision is not about the quality of the brand or the journalism — that is as powerful as ever,” Brown said. “It is about the challenging economics of print publishing and distribution.” Sadly, even ad revenue at highly-respected magazines continues to decline. Â While there’s no way to track how many eyes have viewed a full-page advertisement in print, media outlets are able to check on this data instantly by viewing an ads click through rate and impressions. This in conjunction with a site’s traffic can be monetized, resulting in an overall revenue increase (if the data is favorable).With online advertising at the forefront, New York Magazine saw their revenue increase by 6% for the first half of 2012 compared to a year earlier. That followed an 11% uptick for the full year of 2011.
Industry forecasts show online advertising is where companies are turning. According to media service company ZenithOptimedia, Internet advertising will account for 53% of the growth in total expenditure between 2011 and 2014.
Minimal Production Costs
Newsweek‘s circulation in the states has fallen from a one-time peak of nearly 3 million to roughly 1.5 million currently, Reuters reports. Â With print production costs remaining high, the comp
any’s investment in print was not adding up. With digital, there is a considerable reduction in production costs and an opportunity for a business to cash in by charging for additional content. The New York Times rolled out a three-pricing tiered digital subscription plan in March 2011 and has seen favorable results. The historic newspaper boasts over 500,000 digital subscribers. Hence, cross-format circulation revenue is up nearly 10%, which has helped offset print’s decline.According to Pew Research findings, 65% of Internet users have paid to download or access some form of digital content. Of those nearly two-thirds of web users, nearly 20% paid for digital print publications and 21% paid for apps for their mobile devices.
More Encompassing User Experience
The magazine experience can never be replaced; however, it can be reformed. While test groups and surveys are considered when putting together the final print product, once the magazine is out, it is out. However, upon reviewing data, digital content producers can gauge what works and what doesn’t instantly. That means, if users resonate with specific content around a certain time, staffers can customize the experience for loyal and returning visitors. Various online destinations use algorithms to personalize a user’s experience on a site, even down to their favorite sections.
Profit from Multiple Digital Properties
With mobile at the forefront of many companies’ digital strategies, it’s no different for news outlets. Today’s news consumer is a “multi-platform news consumer,†and a recent Pew Research Center’s Project for Excellence in Journalism report backs that up. Sixty-four percent of tablet owners and 62% of smartphone owners report they use the devices for news at least weekly, which means a third of all American adults now get news on a mobile device at least once a week. While mobile is a strong start for the magazine, Newsweek has the option of exploring other digital ideas and properties, from gamification to customizable apps, among other things–all of which can mean more green for Brown and company.