SELLING MAGAZINE ADVERTISING IN ASIA FIPP – Asia Pacific Reg’l Media Conf. Seoul , Korea 16-18 April, 2002
ASIA • More than 3.5 billion people • No single unified currency • Many different languages dialects • Varying government philosophies
ASIA • Represents nearly 15% of Top Global Advertisers • Rapidly expanding cable satellite • Increased internet penetration • Over 32,000 local magazine titles
ASIA Rapid increase of Foreign Magazine Brands
INCREASED CHOICES BILLBOARD
SOME OBSERVATIONS ABOUT THE CURRENT ASIAN MAGAZINE SELLING ENVIRONMENT • Magazine Business Formula more heavily weighted to Advertising $$$… NOT Circulation $$$ • LIMITED “local” SYNDICATED RESEARCH to evaluate competitive positioning • SPOTTY VERIFICATION of claimed circulation • Advertising Pricing usually LOW CPM. (low cost vs. circulation) • Rely on page volume.
SOME OBSERVATIONS ABOUT THE CURRENT ASIAN MAGAZINE SELLING ENVIRONMENT • IMPORT ADVERTISING REVENUE = LIMITED • EXPANSION OF CABLE/SATELLITE increases need to position magazines in total media mix • Predominately JUNIOR SALES staff… POORLY TRAINED… SELL BARE HANDED • BUY ing and SELLING PROCESS heavily weighted toward AGENCY MEDIA DEPT.
ASIA MAGAZINE’S SHARE OF AD SPEND IN AN EVER INCREAING FRAGMENTED MEDIA MIX • Increased local magazine competition • Increased foreign magazine Licensee/J.V.’s • New media forms (Cable/Satellite/Internet) Radio Radio Outdoor 5.8% Outdoor 4.8% Magazines Magazines 11.4% 13.9% 8.3% 8.7% 1990 2000 Newspapers Newspapers T.V. T.V. 32.0% 34.0% 43.4% 37.6% Source: AC Nielson.
Magazine’s Relative Success in Local Asian Markets Total Adv. S-O-M Spend Japan $42,000 9.7% Korea $6,721 3.7% Taiwan $1,995 10.5% Hong Kong $3,546 13.4% Singapore $870 4.6% Malaysia $818 4.2% Thailand $1,473 4.6% China $4,753 2.7% Source: AC Nielson.
ASIAN CULTURAL DIFFERENCES INFLUENCE LOCAL BUYING / SELLING PROCESS (Each Country has Varying Emphasis) Japan Korea China Taiwan Hong Kong Singapore Indo Malaysia Thailand Aust./ N.Z. Parent Company Influence Magazine/ Client Agency Relationship Personal Relationship Editorial Brand Strength Consumer Commitment Circulation Verification Discounts Marketing Support Service Numerical Evaluation Research
THE SUCCESSFUL FORMULA FOR MAGAZINE ADVERTISING SALES IN ASIA (OR ANY OTHER PLACE IN THE WORLD!) RELEVENT/DIFFERENT EDITORIAL -wanted by the consumer “VALUE” { • SELL BENEFIT of Magazine Reader to CONSUMER COMMITTMENT Prospective -willing to pay a price to buy/ read Advertiser • DEMONSTRATE SUPPORTING ADVERTISERS
THE SUCCESSFUL FORMULA FOR MAGAZINE ADVERTISING SELLING IN ASIA • DEMONSTRATE VALUE – SELL BENEFIT Demonstrate that your product is wanted by the consumer – and that the reader is ideally suited to purchase / support the advertiser’s product • Show knowledge of the advertiser’s business • Markets • Challenges • Goals • Project the editorial products mission/ purpose • Have a main point and relate it to the big picture • Recommend a specific plan
SUMMARY Asian Magazine Reps… “this Bud’s for You!” • more competition for business • more key influences to sell (agency/ client) • a tougher/ more subjective and objective set of standards on which your magazine is being evaluated • personal agendas of the buyer “ this Bud’s for You!”
SUMMARY To Win in Today’s Selling Environment 1. Better Trained • Knowledge of magazine’s editorial Mission/ Purpose • Why your magazine fits the advertisers objective 2. Armed With Better Selling Tools • Profile of readers • Accountability of Circulation Claim
SUMMARY To Win in Today’s Selling Environment 3. Understand that Magazines are Only One Communication Option • Know (ask) how other media forms (Cable/ TV Newspaper/ Internet) will be used 4. Broaden Your Selling Contacts • Go beyond Agency Media Department • Sell up… as well as down • Look for impact adv. Opportunities. “Special Units/ Special Opportunities” Sell Benefit! Sell Value! Sell Value! Sell Benefit!
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