James Donnelly, SVP Crisis Management of Ketchum New York
Marcia Horowitz, Senior Executive Vice President of Rubenstein Associates
D'Arcy Rudnay, SVP Corporate Communications of Comcast
Catherine Mathis, SVP Corporate Communications of the New York Times
Peter Himler, Principal/Founder of Flatiron Communications (moderator)

Even though I don't plan on focusing my career solely on crisis communications, any PR practitioner must be prepared at any given moment, especially when social media, such as blogs and Twitter, come into play. Not only is social media being adapted by PR professionals, it has played a part in transforming the industry and redefining what communication is between a company and the public.

At the beginning of the seminar, the speakers agreed that tools such as Twitter and Facebook are being used by companies such as Comcast to 1) directly engage with 2) their target audience. Such specificity is important, as they pointed out that crisis management has shifted its focus from catastrophic events, such as the classic Tylenol case, to social media, where much of the public are publishers. In turn, crises have the potential to be more viral than ever.

Because of the viral nature of social media, it is more important than ever for PR professionals to understand what really constitutes a crisis in the first place. Catherine Mathis explained that it is a sudden and unexpected event that demands urgent attention and most importantly, can impose negativity on a corporation's image. When the New York Times sold out of papers when Obama won the presidency, Mathis was keen enough to see that this event did not have to turn out for the worst. Instead, she placed a positive spin on the event with reporters, illustrating the shortage as a manifestation of the public's excitement.

James Donnelly, who also teaches his colleagues the nuts and bolts of crisis communications, also had tremendous insight to offer regarding the definition and handling of a crisis. He too described it as an event or occurrence where a company is scrutinized. More importantly, he introduced the concept that the "fishbowl is larger." More eyes are on companies now that ever before, perhaps not just because of the nature of social media but also because of the current recession, where the public and media are focused on the ethics of corporations more than ever. Donnelly offered three key concepts to keep in mind when thrown a crisis: 1) maintain credibility 2) retain focus on responding to the right target audience and 3) keeping a sense of imagination to really gauge solutions more quickly.

The second point Donnelly made was repeated quite often, and sort of became the basis of how to work with social media during a crisis. D'arcy Rudnay suggested getting on corporate blogs right away and to tell the truth around the clock. Nowadays, reporters are getting their information and ideas for stories from other media, especially the latest news seen on the web. Only approach social media if you have chosen the target audience you plan to respond to. It's easy to forget as media professionals that there are still a large portion of the public who don't care or know too much about social media. Moreover, the panelists reiterated that once a company engages with the public through a blog, a relationship is developed and a prolonged engagement is to be expected. Two other easy adages to remember: choose the right thing to do, not what to say and to tell the truth and tell it fast.

As much as social media is used to engage with an audience, it is just as important to utilize it to find out what is being said about your company. Be forewarned: many claim Twitter will eventually charge companies employing its service to do such. And whether through social media or not, crisis communications requires that you respond to a similar event in the future with even more poise: the bar is always raised. Mathis also added that sometimes, you just aren't going to win all arguments. In between the times of crisis and normal business, Rudnay concluded that Twitter can offer a nice mix of professionalism and casualness, as long as the company remains authentic and is not oversharing.

That being said, I finally created a Twitter account a few days ago, the first move to a social network since leaving Myspace behind for Facebook. Not sure why I made the spontaneous move: whether out of the bouts of procrastination during finals, this very blog or from all the buzz in classes. I can conclude that understanding social media and all its fads is just as important as choosing to be a more active participant by being a producer of content. It's the old relationship between being a spectator and player.

In regards to the previous two posts below, Ladies' Home Journal (LHJ) seems to be integrating the most comprehensive, multi-platform initiatives to retain brand awareness through its "Do Good" program to "recognize women and companies that are making a difference." The list of initiatives under this program, however, aren't that far from the advertising-editorial trend we've been seeing:

-In-book content: Each issue will feature a story about "ordinary women doing charitable deeds that can be replicated in neighborhoods around the country" as well as celebrities who are partaking in philanthropy.
-"Do Good Channel" online: "includes features such as social-networking, event-planning and volunteer-matching tools, discussion boards and editorial pieces."
-"Do Good" widget: readers who sign up will receive a "doing-good challenge" for the day; this can be placed on Facebook and Twitter as well.
-“Do Good” Stamp: An award by LHJ to brands that have a philanthropic commitment; brands can use the stamp on their packaging for more cross-promotion. More importantly, companies that receive the stamp will be given advertorials throughout various issues.
-We: Women's Entertainment TV channel: a partnership revolving around the program has just been formed.

I personally feel that in this recession, print magazines should not be succumbing to flashy gimmicks/fixes that compromise time and effort that can go into making content even more superb and interweaved with online activities. The vast amount of platforms given to this program will be a great exercise for the company to figure out how best to reach its audience of women. I agree with LHJ senior VP/editor-in-chief Sally Lee:

There is a growing awareness among all magazine editors that their readership is wanting for deeper spiritual value. There was a backlash against consumerism even before this recession hit. People were already saying: Is that all there is?

Blog posts can effectively summarize a story and give you the takeaway idea. But print publications are still better suited to conveying the nuance and effort of understanding the complexity of an idea and why it matters — what the riddles and wrinkles are within an idea.

The cover ad takes the form of a cover strip and back-cover ad for SunnyD Smoothies. The ad directs readers to download a coupon. Its counterpart on Scholastic.com/Parents will include a link to the advertiser’s Web site where consumers can download a coupon.

The New York Times published an excellent article exploring the consequences of increasing or decreasing subscription prices. Reporter Stephanie Clifford cited that several popular magazines offer a subscription price of less than one dollar per issue. However, several magazine executives have been rethinking this model, as advertising revenues decline and as other magazines have stayed successful after increasing subscription rates. Clifford further explains,

Publishers have long set low subscription prices and have even lost money doing so, assuming that the real money came from ads. Subscription revenue was gravy.

“Obviously, you can hardly even mail that particular issue for 80 cents, but what makes up the difference is the advertising,” said John Fennell, an associate professor of magazine journalism at the Missouri School of Journalism. It is a “model where magazines essentially try to gain as many subscribers as they can and allow advertising to pay the bills.”

Lower subscription prices do not necessarily mean less revenue for the publisher, however. When publishers reduce their reliance on subscriptions sold through agents, the subscription prices can fall, but the publisher earns more because it is no longer sharing the subscription revenue.

I found this article particularly interesting because significantly less revenues from subscriptions has been an accepted part of the magazine economic model for quite some time. I personally feel that moderately higher subscription rates (perhaps comparable to newsstand prices or at least under $7.00) seems reasonable. From the research I did on the key economic factors of this industry, subscription revenues have been decreasing over the last ten years; now that advertising revenues have been decreasing sharply for the first time in a very long time, it may not hurt several publishers to test out higher rates. Perhaps online advertising or digital initiatives may serve as a buffer to these endeavors.

Hearst continues to fortify its digital initiatives with an unforeseen tactic in the magazine industry. In its efforts to reach out to consumers who are affected by the recession and doing more discounted online shopping, Hearst has partnered with Coupons.com to have a "coupons and deals" section on its foodie website, Delish.com. Recipes online will have "technology" that links certain words to the appropriate coupons "to asist in driving traffic and page views to the galleries." Hearst hopes to eventually have a link to the coupon gallery on all of its websites. From this partnership, Hearst will also promote a weekly "Hearst-branded" e-newsletter from Coupons.com.

Revenue will be shared among both parties; more revenue will be generated as traditional banner ads will surround each coupon gallery. This initiative has already been tested on Hearst's QuickandSimple.com, which resulted in 55,600 coupons printed at a value of roughly $100,000. This partnership definitely seems very fitting for Delish.com and Coupons.com will surely benefit from Hearst' prestige in the publishing world when their e-newsletter comes out. Compared to Us Weekly's ad cover (discussed in the previous post), Hearst's initiative actually seems more relevant and complementary to the reader's needs while taking into account readers' online habits.

More ads are creeping onto magazine covers these days.

The April 20th issue of Wenner Media’s Us Weekly will have a cover "to resemble a 1940s-era issue of Us Weekly and features HBO's 'Grey Gardens' stars Jessica Lange and Drew Barrymore." The ad was created by Us Weekly; the cover is part of a five-page ad buy that includes inside, back cover ads and a "mix of pages to resemble Us Weekly as well as traditional ads" to promote the film's premiere. Underneath this "ad cover' is the magazine's real cover featuring Lindsey Lohan.

Reporter Lucia Moses states, "While some of these unusual ads have involved the cover, false covers are rare among consumer magazines. The Us Weekly one is the magazine’s first." the magazine made conscientious efforts to not confuse readers about the two covers: "The word 'advertisement' appears across the top of its mock cover, and other features like the logo and fonts are changed so as to differentiate it from the actual cover." Vicci Lasdon Rose, publisher of Us Weekly, explained

I think it was very clear that this is a unit that is separate from the magazine’s traditional editorial approach. We were very clear by the creative treatment…so there was no miscommunication there. There was no effort to betray or manipulate the reader.

A few concerns: how much is Us Weekly making from selling so much prominent ad space? Does this open up more possibilities for similar partnerships in the future? Especially for Us Weekly, I wonder if this 1940s themed cover will actually be an eye-catcher on newsstands, as these types of celebrity magazines are dependent on their flashy covers.

As mentioned earlier in the semester, Plastic Logic, based in Silicon Valley, is hoping to wipe out the Kindle by building a mobile digital reader specifically for newspapers and magazines. Partners already include: Financial Times, USA Today and digital publishers like Zinio. Plastic Logic's Vice President of Business Development Daren Benzi explained that current e-readers like the Kindle only consider books and that mobile devices like the iPhone are limited by their palm-size screens, which "don’t provide enough room for the visual experiences magazines will need to appeal to readers and advertisers—those full-page, color pictures, charticles and information graphics, not to mention leggy models splayed across two-page spreads." Hoping to be released in 2010, the e-reader will be about 8.5 inches wide, 10.7 inches long, made of lightweight plastic, thin as a pad of paper and will be flexible, making it "nearly unbreakable." See the video above to get a better sense of the product. Plastic Logic hopes to create a "content store" like the Kindle.

Users could subscribe to publications, and new issues would update automatically—and they could download their own Word documents, Excel spreadsheets and PDFs onto the device, too.

Though the innovations are exciting, will a digital format in the same size as an actual print magazine be any more attractive? It can be concluded from this article that if e-readers are to be successful, they really have to offer the best physical reader experience the device can offer. It is also essential to provide more services beyond the actual digital version of a magazine. Perhaps constant updates or even interactivity would distinguish e-readers, instead of trying to replace magazines altogether.

Several magazines have been releasing content or applications for mobile devices, a relatively new strategy for the industry. FolioMag finally tries to explore where the industry stands in regards to its partnerships with mobile devices. As the chart above indicates, interest in viewing digital magazines on an iPhone or Blackberry is actually growing. According to Zinio's Rich Maggiotto (Zinio sells and distributes magazines and books in digital formats), "Mobile is clearly where digital publishing is heading" but no one has yet figured out the right business model for making money in mobile." The current challenge has to do with formats and layout, so magazines will have to experiment with different display technologies. Marcus Grimm, Marketing Director of Nxtbook Media explains,

In today’s world, there are so many different ways to render your content. You really have to step back, look at the content, and consider where a particular piece will be best received. Longer-format content plays well in a digital magazine, for example, while shorter formats play well on a Web site.

We want the publication to be seen at regular size. But we don’t want to wait until the right mobile device is available and then have to put something together. We’re in the midst of a transition period.

A few questions: how much revenue have mobile initiatives garnered so far? Perhaps the profit of these initiatives can't be determined until the success of readers and mobile devices such as the Kindle have been solidified in terms of being a common source of news and information. If anything, I feel that this article is correct in suggesting that new formats have to be created if magazines want to release digital content, as a popular misconception/assumption is that e-readers have to totally recreate the experience of reading a print magazine (which is nearly impossible).

Hearst Magazines’ Country Living announced that the "Country Living Collection" of home goods (bedding, bath, furniture) will be found in Kmart and Sears this August. The collection marks the magazine's "biggest licensing effort" which will enhance its already-existing collection of food, books and home decor. This announcement coincides with the magazine's redesign beginning with its May issue. Future issues will include a new shopping section with items that can be bought with discounts only for Country Living readers. Reporter Lucia Moses adds, "Retail extensions also have become increasingly popular among magazines as they look for ways to extend their reach to consumers. Prominent examples are Martha Stewart Living, with its extensive product lines at Kmart."

Releasing magazine-branded products has been a current trend in terms of how the magazine industry is responding to the recession. We have yet to see how much revenue these "co-branding" initiatives are gathering. Though Country Living has partnered with retailers that are aiming for the same goals of offering "comfort items at low prices," I do not feel confident that this collection can garner the same success that the Martha Stewart Living collection has achieved. The difference between these two collections is that the Martha Stewart brand has been long established in the home market. Perhaps the focus should be retained on the actual publication before trying to spread word about a magazine barely established in the forefront of women's minds.

Another interesting initiative for the magazine industry finally moves to television. Popular Science magazine and The Science Channel will be partnering for a new 10-part series in June on Science Channel and Science Channel HD which will explore "different future iterations" in each episode. The partnership involves "shared accountability for both editorial and ad sales." Both parties will share ad sales and marketing duties as well as revenues on convergent ad packages. More interesting is that this initiative will include a "seamless cross-platform approach for advertisers, readers and viewers." Deborah Adler Myers, senior VP-programming for Science Channel and Discovery Emerging Networks explains:

We wanted to create a creative experience for advertisers that you can't get by buying any one package. We'll be posing questions on the show so that you have to go to the magazine to find the answer, then go to the web site, so that it really becomes a multiplatform experience.

The article also explains that this initiative will help the magazine reach out to females, the consumers of the household, who may not even know about the magazine. The article cites that other magazines that have partnered with television shows haven't been successful, but this partnership seems possible, as its niche audience moves to more niched channels. I wonder if there are any online initiatives with this program; perhaps putting the answers to the questions posed in the series would be better placed online. Here is where my main question emerges: why aren't most of the magazine industry's initiatives actually targeted toward the actual print publication's content? Online and televisions partnerships are innovative, but perhaps the industry needs to hone in on the actual print experience to secure more long-term revenue.

A more successful initiative is Time Inc's launch of Life.com, a photography website partnering with Getty Images. The website will "pool Life magazine's vast archive -- only 3 percent of which has ever been published -- with a Getty collection that grows by 3,000 images a day." Life.com will have "the single largest online cache of professional photography, with 7 million pictures and counting." Content will be divided into five categories: news, celebrities, sports, travel and animals.

Life.com's initiatives to get more viewers and revenues are even more interesting and even exciting. Users will be able to create their own photo collections and share them on blogs or social networking sites. Celebrities, such as Ellen DeGeneres, will also be invited to guest-edit pages (Ellen is "curating" a collection of dog photos). Eventually, Life.com hopes to create the "Timeline," which will allow users to upload their personal photos with photos from the website to create a sort of scrapbook. Another future initiative includes being able to purchase photos as a collection in a magazine or book.

Most importantly, the site will be "primarily advertising-driven" and ad sales will be handled through Time.com. Rolex has already been confirmed as the first sponsor.

The tie-ins of involving users and celebrities to interact with the site's content, as well as the sturdy advertising model, seem to make the launch of Life.com a successful one not just on the first day, but for much longer. I initially thought allowing users to purchase an individual photo would be a successful component in the business model. But, it makes sense that Life.com would only allow the purchase of photos if they're in a collection, thereby forcing users to interact and sift through the site.

Similar to the previous post about mine magazine, the New York Times reported last Sunday on Hewlett Packard's newest innovation: MagCloud. MagCloud is a web service for people to make their own magazines more quickly, easily and cheaply.

A user creates their own design
makes it into a PDF file
sends it to MagCloud via the Internet
H.P. sends the file to printers they've partnered with
H.P. covers the billing and shipping and the "publisher" pays 20 cents per page
The "publisher" can charge whatever he or she wants for the magazine

H.P. hopes to target aspiring publishers who want to make "underground zines" or have particular interests, from professors who want to distribute a magazine in the classroom to those who want to show off their art. Ashlee Vance reports, "H.P. dreams of turning MagCloud into vanity publishing’s equivalent of YouTube." Publishing a magazine through MagCloud is easier compared to going through a larger printer since changes can be made more easily at the last minute, if necessary. MagCloud also presents many opportunities for H.P. to sell more of their digital printers and ink. However, H.P's intentions don't seem to be entirely dedicated to MagCloud's prospects:

For H.P., MagCloud is also a way to provide customized service at low risk. And if the niche does not thrive, the company will simply move on.

Is the magazine industry relying on spurts of income? MagCloud seems promising, as other online publishing providers like Blurb.com have been successful. However, the last statement of this article indicates that the industry does not seem to be giving enough efforts for long-term, economic success. The article did not mention any side promotions H.P. has for MagCloud as well. Nevertheless, I feel the service could be very viable, as it bridges interaction on digital and print platforms.

Retailers are saying to publishers, ‘Help me tailor these titles to my store,’ but publishers want to know things like how the changes in daily traffic at the stores will affect how many titles are sold. But they won’t know these things unless they’re given the right information.

Each side is worried about how they can get more money for themselves instead of what they can do to help build the business.

Unfortunately, the coverage of this event portrays lots of "fluff" to me. I didn't even include my usual intro picture since photos of the event showed editors mingling at cocktail hour against the backdrop of a Miami beach. Will both parties make serious efforts to better communicate with each other? In regards to the previous two posts about new magazine initiatives, do publishers take into consideration the profits of distributors? If anything, such tactics seem to be taking care of the short-term circumstances. Besides flashy advertising-sponsored issues, what else can publishers do with print magazines to make them more conducive to a retailer's business?

Last Wednesday, Time Inc. announced their latest venture: mine magazine. The "made-to-order" magazine is the company's attempt to make print comparable to personalized news feeds. Readers select sections from five of the eight publications under subsidiaries of Time Warner Inc. and American Express Co. Editors will pre-select the stories to go into the bi-weekly issue which is free; 5 issues will be published over 10 weeks. An online version will also be available.

Of course, the customization of mine is meant to reflect the campaign of its advertiser: Toyota for its new Lexus 2010 RX sport-utility vehicle. "There are 56 editorial combinations in all (the Lexus SUV has 22 customizable settings, plus eight options handled by a dealer)." What readers may find even more interesting, to say the least, is that "hyper-targeting" advertising would appear in the issue if an online survey was complete beforehand.

A sample ad tag line for a respondent named Dave, who lives in Los Angeles and eats sushi, might read: "Hey Dave, your friends will be really impressed when you drive down Van Ness Avenue on your way to get sushi."

In terms of content, would readers actually put in the effort to get a pseudo-"customized" magazine? The idea plays off of the "luxury" aspect of reading a magazine, but the options are still limited: you have to pick a Time Warner publication and will receive content picked by editors. If anything, the fact that the publication is free is attractive. But will readers want to fill out the survey to get personalized advertising? Similar to Esquire's cover innovations, I wonder exactly how much income these issues generate.