An increase in cover prices will have a negative outcome on circulation at the very time that consumer spending will be put under strain as interest rates, petrol prices and inflation bites into their disposable income. The weaker rand will have negative impact on the costs of production, pushing magazine prices ever higher and squeezing margins.
In this scenario they portend: "...publications will be under stress for survival and only the fittest will be able to take the strain of changing circumstances."
In the context of magazines, being "fit" means that the publication has a well-defined audience and that this audience is well-understood by both the content writers and the advertising carried. Loyal readers of a publication demand that their interests, desires and motivations are served. Content or advertising that impinges on these needs and wants will render the publication less "fit". Precision targeting by the ever growing number of niche titles is a critical "fitness" factor.
Advertisers, in turn, will be seeking more than just "numbers" in their media expenditure. Cost per thousand will give way to value per connection. This value will be informed by more than mere demographics. The values of the advertised brand will need to be matched to the values of the publication. 'One ad fits' all will give way to individualised messages, matched to the values of the readers as reflected in the publication.
South Africa has been well served in the numbers game with research currencies that are credible. But, the new tough times ahead will demand more than just the hard numbers. Space (and time) trading in "demographics" will give way to trading in brand users and this will be done by having the attitudinal data to define both those users and where best to reach them, in a single source database.
Targeting an LSM group will give way to specifics like heavy users of competitive brand X that also share a certain value set. The publication that delivers similar values will provide better returns per rand spent. Readers will feel recognised, and fitness to survive, will be more assured.
