Archive for December, 2007

Digital is Green(er), Part 2

by Brad McDonald

Magazine publishing has never been the most environmentally friendly business, but the latest data shows just how bad things have gotten. Through statements that publishers are required to file each year with the US Post Office, you can get a very detailed picture of a magazine’s distribution.

Based on their own reporting, publishers of action sports magazines are selling only about 25% of the copies they put on the newsstand. That means 75% of the copies were printed and trucked to stores, only to go into a shredder. Think of the resources required to produce a magazine – harvest trees, truck the logs to a paper mill, make the paper, transport it to a printing plant, print the magazine, send the copies to distribution centers, truck the copies to stores. All that effort so that just one in four copies can wind up in a consumer’s hands.

The subscription side of the business isn’t necessarily any better. Many subscription copies are mailed to “subscribers” who have never even requested or paid for the magazine (i.e. junk mail). According to the recent postal statements, the amount of free copies being sent varies widely. As a percentage of total paid circulation, free copies range from 5% to 123%. That’s right, some magazines are giving away more copies than they are selling. And these aren’t new titles just trying to get their name out – this is part of a deliberate, long-term strategy.

Why would publishers do this? So they can charge advertisers higher ad rates. As consumer demand has slackened over the last several years, publishers have desperately attempted to prop up circulation levels rather than admit that readership is falling. So in spite of the obvious waste of printing 4 copies to sell 1, or of mailing unrequested subscriptions copies, it’s still more profitable than reducing circulation and forgoing ad revenue. Ultimately, the waste is perpetuated by the advertisers, as they foot the entire bill for unsold copies.

Environmentally, this model is a disaster. For perspective, a typical magazine that sells 50k copies each month will consume around 1.5 million pounds of paper annually, plus the resources required to print and transport the magazines. Magazines with heavy paper or a larger format look nice, but they also waste considerably more resources (both paper and transportation).

The irony is that magazines have become more wasteful at the same time that they have become less necessary to both advertisers and readers. Quite literally, the cost of the ink alone exceeds the cost of operating servers and buying bandwidth to reach the same audience size online! As computer chip manufacturers continue improving energy-efficiency, the gap will only widen further.

When you consider the impact and all the alternatives to magazines, you have to ask yourself how badly you need to hold something in your hands to read it.

If you think I have a biased perspective on this issue, or you would like to read more, check out these links: Magazine Industry Is Wasting Forests and Web Leads, Print Pubs Improve Environmental Impact.

“The Digital Tipping Point”

by Brad McDonald

First on AdAge.com’s list of the top-ten stories of the year is “The Digital Tipping Point.”

This will be remembered as the year everybody quit kvetching about digital and started doing something about it. Serious marketing budgets were directed online; agencies desperately tried to ramp up their digital capabilities (and even when they couldn’t still claimed to be digital); and holding companies and the digital-media giants paid silly multiples for digital additions; media companies sang the digital refrain in an effort to sound like they had a future.

See the whole list here.

Vital Christmas Party

by Brad McDonald

Vital Christmas Party
With the “virtual office” thing becoming more of a reality, it makes get-togethers like yesterday’s Christmas lunch that much more of an occasion.

Clockwise from the left: Bill Bryant, Kevin Laronda, Mike Metcalf, Todd Toth, Glenn Milligan, Harold “McGoo” McGruther, Brad McDonald, Christine McDonald, and Aaron Chandler. Not pictured: Steve Giberson (someone had to take the picture), Mark Losey, Kyle Carlson, Shad Lambert, and the many contributors who keep Vital stocked with great content.

Digital is Green(er)

by Brad McDonald

At some point, even the nostalgia of my days as a paperboy had to give way to common sense. I’ve always loved newspapers, but as I spend more time in front of a computer, they’ve become less important to me. The information in a newspaper is often dated by the time you get it, they cost money in a world where news is free, and they’re incredibly wasteful. After doing the cost-benefit calculation in my head for the umpteenth time, it was time to cancel. The financial piece I could ignore, but the environmental guilt was there each time I tossed out a barely-read paper (in the plastic delivery bag, nonetheless). How could I feel good dumping several pounds of paper into the recycling bin each week after I’ve read less than 5% of it? By volume, the vast majority of the paper is advertising that is untargeted and irrelevant to me – classifieds, home buying guides, TV listings, Parade, movie listings, and two-inches of circulars every Sunday. I love the Times and will keep reading it, but it will be on my computer or mobile phone and it will be for free. And, mercifully, there won’t be any coupons for The Franklin Mint or Stove Top Stuffing.

The Power of Video Advertising

by Todd Toth

Check out the video-in-banner ad that GT did recently.

 [kml_flashembed movie="http://pserver.mii.instacontent.net/vitalmedia/bmx-preroll/gt_js/GT_300_300.swf" height="300" width="300" /]    

Pretty cool, huh?

GT used the undeniable power of video to let the personality of their rider show. Imagine your brand having this type of ad – it could be very powerful.

Let us know if you need help getting started with video-in-banner ads.