MediaFile

Conde Nast digital incubator hatches Santa’s Hideout

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Conde Nast  just launched the latest product from its digital incubator in time for the holidays called “Santa’s Hideout.” The site is a free gift giving service aimed at children that lets parents set up a list for each child to fill while  also allowing parents to don their Santa beard. The items on the lists can be divvied up for Santa only as well as for family and friends.

Santa’s Hideout is using Amazon’s public API which is handling the e-commerce duties of shipping items on the list.

The site  is the second digital product launched from Conde Nast’s small research and development group which is overseen by Joe Simon, chief technology officer at Conde Nast. The first was something called Idea Flight, an iPad productivity app, that was released in June.

“The group is allowed to run in any direction,” explained Drew Schutte, chief integration officer at Conde Nast. “You never know how one technology will impact the rest of the company.”

Conde Nast is not alone in wading into tech waters. (It also acquired Reddit five years ago before spinning it out as a standalone company.) Hearst, for instance, launched App Lab at its magazine division and is behind the very nifty personal finance site  Manilla.

They’ll always be the Magazine Publishers of America to me

The Magazine Publishers of America said on Friday that it is renaming itself the MPA — The Association of Magazine Media. The notable difference is the omission of the word publishers. Why?

“MPA is underscoring the fact that magazine media content engages consumers globally across multiple platforms, including websites, tablets, smartphones, books, live events and more.”

“More” presumably means “printed magazines,” but nobody in media is all that hot on associating themselves with words like “publish” and “print” because to young people (or young “consumers” in the parlance that people use when their sole desire is to make money from you) and investors those words smell like death.

When magazine publishers like Conde Nast and newspaper publishers like Advance Publications (like Conde Nast, owned by the Newhouses) have been forced to cut hundreds if not thousands of jobs and stop publishing some of their products, it doesn’t do much good in the public relations department to accentuate the part of your business that is fading, even if it still produces 80 to 90 percent of your revenue. Fortunately, Time Inc CEO and incoming MPA Chairman Jack Griffin manages to refer in passing to “print” one time in the press release quote.

My question: Why do this so soon after magazine publishers devoted $90 million in advertising space to the MPA just this year for its “Magazines, the Power of Print” campaign? I’m lined up to talk to someone at the MPA to ask that question and will update when I hear it. The ad campaign, in the unlikely case that you missed it, tries to convince advertisers that print still is worth spending money on. It’s interesting at the very least to segue into a whole new message so soon afterward.

Also, read my friend Jack Shafer’s blistering review of the campaign at Slate, not to mention his darts tossed at a similar campaign by the Newspaper Association of America. If the words, “newspaper industry’s no-confidence vote in itself” don’t rouse the schadenfreude in your cold, cold heart, nothing will.

Perhaps this PR strategy makes sense, even if the business they engage in day after day will be just the same after the new association name debuts on Oct. 4 at the American Magazine Conference. Stick to your PR strategy long enough, we have seen over the years, and people can accept all sorts of things.

COMMENT

What a disgrace for homeowners around the country to find out that their lenders are foreclosing on their homes with bogus documentation.

Always request a public legal audit of everything done and contact your local Attorney General.

Posted by AXJ | Report as abusive

A digital taste of Gourmet

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Fans of Gourmet, wipe your tears away because Conde Nast is reviving the, errr, brand.  As Conde Nast consumer marketing group president Robert Sauerberg said this morning during a briefing for the resurrection: “We closed the magazine last fall. We did not close the brand.”

So if you want to get your mitts on Gourmet and its extensive archives go out and buy an iPad and wait until the fourth quarter. That is when Conde Nast will officially relaunch Gourmet, reincarnated as an app.

So far it pretty much mines the library for material. It’s doubtful that editoral staffers will rise Lazarus-like with it.

Conde Nast partnered with the consulting company Activate to develop the app in HTML 5  with social aspects, some sort of fake payment a la Foursquare and its badges, as well as recipes, articles and videos from the Gourmet stacks.

Conde Nast: Flushing brides, extra food

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Your Reuters media writers got a little flushed on Monday morning when we saw that Conde Nast was going to close some magazines. Would we see The New Yorker and Vanity Fair pulped? No such luck for us vultures who were craving a big murder-in-the-first-degree story. This appears to be more of a mercy killing.

Instead, here’s what we get:

  • Consolidation in the bridal business. No more Modern Bride, no more Elegant Bride. Instead, we get a monthly edition of Brides magazine, the kind of phonebook-sized tome that it seems will pay for itself. After all, people love to get married, and many these days like to do it twice.
  • Calorie cutting in the food format: Gourmet magazine gets purged, while the brand lives on. Or, as Media Memo’s Peter Kafka put it, it survives “Zombie-like” on TV and the Internet. Bon Appetit survives, meanwhile.
  • Speaking of food, no more Cookies. Cookie magazine, the “stylish parenting magazine for the new mom,” dies. So much for news-you-can-use stories like “Parents and pot: Do you think it’s okay to smoke weed at a play date?”

Stephanie Clifford of The New York Times got an interview with Conde Nast CEO Chuck Townsend, who gave her the details of how this is going down. Since we’re not sure if Chuck will have time for us today (we’re hoping the phone rings presently), here’s what he said:

None of the about 180 employees of the magazines, including the Gourmet editor-in-chief, Ruth Reichl, are expected to stay with the company… The employees will receive severance packages this week and be out by the end of the week.

Other layoffs may be in the works. Mr. Townsend has asked editors and publishers of each magazine to meet certain budgets, and the executives can choose whether to lay off staff to get there. The executives’ plans are due in 10 days, Mr. Townsend said, and all layoffs should be completed by the end of the year.

This is it for magazine closures, he said, although he said three or four magazines were considering reducing their frequency.

COMMENT

This is pretty bad stuff. I’ve never heard of any of these magazines except Gourmet (it sounds like the people working at Cookie should be in jail not just out of their jobs anyway) – but I’m certainly scared for The New Yorker. I mean The New Yorker is maybe literally the only good thing that is currently being done by the 300 million-strong population of the United States. Sure, their glowing profiles of rich people and their economic analysis is often disgustingly reactionary, but nevertheless in general The New Yorker is still one of the most amazing institutions in the world with generally brilliant journalism and research writing coming out pretty much every week for, what, 50 USD a year? You can’t get anything like it for love or money anywhere else.

This company chief maybe is being reasonable by axing most of what he just axed, but it’s hard to say what they are going to end up doing. I mean anyone who thinks that any sustainable business should be 25% net profit, let alone businesses that are primarily about creativity and serious research and journalism, is frankly a foolish idiot. 25% net profit? Whatever happened to running a functioning organization that can pay for itself sustainably? I mean if he wants 25% net profit he should rob a bank not try to run an organization, where the point is supposed to be to put food on everyone’s table and still be there next year to do the same. I mean I’m just some kid who doesn’t know the first thing about executive leadership — but even I know the people trying to work at these companies for a living need to get rid of this irresponsible fantasist before he takes them all out. Being in the red is one thing but what’s wrong with 3% net if you have reason to think you’ve built a sustainable revenue stream that can still pay the bills next year?

I like “Nick” ‘s idea for the magazine to replace Cookie. “Minimum Wage” magazine – since nobody knows how to feed their kids on minimum wage this would be instructive and a good public service. And actually a service Conde Nast could inexpensively provide for the people they are firing. “Well, guys, it’s not like you’ll be getting a pension or health insurance – it’s 2009 not 1950, baby – but how does a free subscription to our new rag The Max on Minimum sound? It’ll be news you can use to keep from starving (maybe)!”

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Tuesday media highlights

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Here are some of the day’s top stories in the media industry:

U.S. business magazines face a shakeout (Reuters) Robert MacMillan writes: “Business news publishers rubbed their hands in glee when the financial crisis grabbed headlines last fall, saying the meltdown would deliver a windfall blown in by widespread interest in their stories. It did not turn out that way. Appetite for news does not always translate into revenue, especially at a time when blogs, wire services such as Bloomberg and Thomson Reuters and other outlets crowd into news analysis territory that the big magazines had long claimed.”

McClatchy quarterly profit rises on cost cuts (Reuters) “U.S. newspaper publisher McClatchy Co reported higher quarterly income on Tuesday because of cost cuts, pushing shares up as much as 67 percent, even as advertising revenue fell by nearly a third. McClatchy, publisher of The Miami Herald and Sacramento Bee, also said it reduced the amount of debt that it owes and sought to reassure investors that it will not violate the terms of its lending agreements,” reports Robert MacMillan.

Economist Group Buys Congressional Quarterly (WSJ) Kevin Kingsbury writes: “The deal, terms of which weren’t disclosed, will create a new company called CQ-Roll Call Group. Roll Call is owned by the Economist Group, the London-based publisher of its namesake magazine. Roll Call is buying Congressional Quarterly from Times Publishing Co., whose primary operations is the St. Petersburg Times and related assets.”

James Murdoch Approved Payment to Phone Tap Victim (Bloomberg) “James Murdoch, the son of News Corp. Chairman Rupert Murdoch, agreed to a 700,000-pound ($1.1 million) payment to a victim of phone-tapping by the News of the World, the editor of the company’s newspaper said,” writes Robert Hutton. > Ex-Murdoch paper editor says phone taps not policy (Reuters)

Conde Nast September Monthlies Lose 1,680 Ad Pages (NYO) “Vogue tumbled to 427 pages total, down 36 percent from last September. W is down 53 percent; Allure and Gourmet are down 51 percent; and Self is down 50 percent. Vanity Fair came in just above average for the company, dropping 36 percent,” writes John Koblin.

In other news:

COMMENT

Personally,I prefer to read news online rather than buying some business magazines.

from Summit Notebook:

SEC’s Schapiro says journalist job cuts worrying

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Mary Schapiro, America's new top cop for the securities industry, said the current mass culling of journalists' jobs is a concern because it could reduce the number of leads that regulators get as they seek to crack down on nefarious behavior.

"It's an absolute worry for me because I think financial journalists have in many cases been the sources of some really important enforcement cases and really important discovery of practices and products that regulators should be profoundly concerned about," the chairman of the Securities and Exchange Commission told the Reuters Global Financial Regulation Summit in Washington on Tuesday.

"But for journalists having been dogged and determined and really pursuing some of these things, they might not be known to the regulators or they might not be known for a long time," she said.

But Schapiro, who was speaking a day after Conde Nast announced the closure of its glossy business magazine Portfolio only about two years after it launched, held out some hope for the business reporting trade. She said that some journalists should consider applying for jobs at the SEC.

"Investigative journalism actually would be a pretty interesting skill set for us to have. We've talked about financial analysis, we've talked about forensic accounting being skill sets that we really need -- understanding of complex trading, strategies and systems, but it's one of the things the SEC has to do. It has to really broaden its horizons and bring in people who think about things a little differently than it has historically."

But what would having Mr/Ms Investigative Journalist working there do for the SEC's tarnished media image? And how would a hard-nosed investigative journalist respond to all those agreements to let some of the bad guys off with a rap over the knuckles and a small fine (those infamous "did not admit or deny" settlements)?

Microsoft, Gates master the art of product placement

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There is no better way to learn about the art of product placement than to learn from the masters. Today, that means Microsoft Corp and the Bill and Melinda Gates Foundation, both of which were the subject of articles about how they’re delivering their messages like little pills wrapped in the sugar coating of the entertainment you consume.

Ad Age:

Can Microsoft market its way out of the search basement? Probably not, but it’s going to try, entrusting [ad] agency JWT to craft a campaign for its new search engine, alternately dubbed Kumo or Project Kiev or Live Search, depending on who’s talking about it. … The service is being tested and is expected to make its debut in the summer. … Industry executives expect JWT, part of WPP, to unveil an estimated $80 million to $100 million push for the new search engine in June, with online, TV, print and radio executions. Microsoft spent $361 million on U.S. measured media in 2008, the bulk of it devoted to brand advertising and smaller chunks to other Microsoft brands such as Xbox and MSN, according to TNS Media Intelligence data.

The New York Times:

The huge [Gates] foundation, brimming with billions of dollars from Mr. Gates and Warren Buffett, is well known for its myriad projects around the world to promote health and education. It is less well known as a behind-the-scenes influencer of public attitudes toward these issues by helping to shape story lines and insert messages into popular entertainment like the television shows “ER,” “Law & Order: SVU” and “Private Practice.” The foundation’s messages on H.I.V. prevention, surgical safety and the spread of infectious diseases have found their way into these shows.

Now the Gates Foundation is set to expand its involvement and spend more money on influencing popular culture through a deal with Viacom, the parent company of MTV and its sister networks VH1, Nickelodeon and BET. It could be called “message placement”: the social or philanthropic corollary to product placement deals in which marketers pay to feature products in shows and movies. Instead of selling Coca-Cola or G.M. cars, they promote education and healthy living.

The Times story uses expert comments from the Kaiser Family Foundation, which has been doing this issue placement for years, and gave advice to the Gates Foundation about how to do this. One of the Kaiser officials told the Times that this “is not about planting a message.”

Kellogg drops Phelps after photos

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We won’t be tempted by puns. Or any sort of lame wordplay.  We’ll play this straight. Seriously. Here goes: After all the bad publicity caused by a photo of Michael Phelps apparently taking a bong hit, Kellogg has decided to dump the superswimmer.

Okay, now that’s out of the way. Here’s the basics from Reuters:

The world’s largest cereal maker said on Thursday it would not extend a contract with Phelps, who charmed audiences in Beijing last year with a record-breaking, eight-gold medal haul, saying the photo of the swimmer was inconsistent with its public image.

Phelps, estimated to make millions of dollars annually from marketing deals, issued an apology this week after a British newspaper published a photograph purportedly showing him smoking marijuana during a student party at the University of South Carolina in November.

The move doesn’t come as a complete surprise. Marketers often get nervous about this sort of thing, especially when forking out big bucks in this economy. Phelps has other deals worth millions of dollars with brands including Speedo swimwear, Omega watches, Visa Inc, Subway sandwiches and Hilton Hotels. Phelps’s agency, Octagon, said earlier this week that it had been in touch with his sponsors and that none had indicated any intention of backing out of their deals.

What changed? What’s the deal with Kellogg? The difference? One marketing executive tells AdWeek that it’s all about the kids.

COMMENT

The thing is, obviously the AOL subscribers who have commented about this incident with Michael Phelps don’t understand business and endorsement ethics.This was a very serious breach of contract regardless of how young Michael is.When you sign a contract to represent a brand® you have an obligation to look outfor the interests of the payee above your own by keeping your personal behavior within the bounds of the law and moral standard. By allowing himself the freedom to participate in the Bong Photo and activity he disrespected his Agents, his Sponsors, the USOC and himself most importantly. There is no reason why we should not expect our Heros and Icons to behave with wisdom, knowledge and good sense, if we trust them with millions of dollars and the dreams of our own children! He had been warned previously with his DUI in 2004 after returning from Athens, Greece, that was his wake up call; He chose to ignore it. Everyone should wake up and take notice. America needs to protect integrity and honor. Simply put Michael Phelps did not honor his word and actions by risking some much for so little. “To whom much is given much is expected.”

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Domino dancing with Conde Nast

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April Fool’s Day is still a few months away, giving magazine publisher Conde Nast some time to pull a few practice gags. The latest is its decision to kill Domino magazine — days after appointing a new chief to run it.

Here’s the press release, sent on Wednesday:

Domino magazine will cease publication, it was announced today by Charles H. Townsend, President and CEO of Condé Nast. The final issue will be published in March 2009.

“This decision to cease publication of the magazine and its website is driven entirely by the economy,” Mr. Townsend said. “Although readership and advertising response was encouraging in the early years, we have concluded that this economic market will not support our business expectations.”

Domino was launched in April 2005. The magazine’s current ratebase is 800,000.

It is one of the latest “shelter” magazines — titles dealing with the home — to go under. (Kind of ironic, really, when so many people are spending more time at home because they can’t afford to go out anymore.)

Things were different not so long ago, the New York Observer reported earlier this month:

COMMENT

Check out http://www.flickr.com/groups/dominomag/. It’s the next best thing.

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Google and Microsoft tangle again — over Verizon

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Chalk one up for Microsoft — sort of.

If today’s report in the Wall Street Journal is right, then Microsoft is about to land an agreement with Verizon Wireless to become the default search provider on its cellphones.

In its battle with Google, that should count as a win for Microsoft, even if the company had to offer much, much better terms than its rival.

From the article: “Verizon is tilting toward Microsoft because the software giant is offering significantly better financial incentives, but the telecom company is still in discussions with Google and the situation is fluid with both companies, these people said.”

The WSJ says the deal would likely call for Microsoft to share revenue with Verizon when advertisements come up in response to a search. It reports that there would likely be guarenteed payments to Verizon of $550 million to $650 million over five years. That’s about twice what Google offered, according to the report.

If accurate, Microsoft’s super aggressive offer shows just how worried it is about Google. It needs wins, particularly when it comes to search deals.  But as Silicon Alley Insider points out, Google is under some pressure, too.

COMMENT

This is terribly foolish. Microsoft could not search their way out of a porta-potty. I want Google on my phone and nothing else will do. I just enabled Verizon Mobileweb solely for the purpose of being able to do a Google search.