Will Google, Apple and Amazon Fuel Newspaper, Magazine Subscriptions?

While a lot of people in the media industry spent the past couple of years figuring out how to make old media business models work online, and media critics droned on about the death of newspapers and magazines, technology innovators focused on fixing the problem. What problem? Getting consumers to want to pay for digital content.


The New Newspaper, Magazine

Newspapers (in print form) may be “dying” in terms of subscription declines and upside down business models, but devices like Amazon’s Kindle and Apple’s iPad are breathing fresh life into publishing for newspapers, magazines and anything else in print.
Nobody knows for sure how many Kindles have been sold to date, but there are plenty of guesses out there that suggest there are at least 5 million out there. Of course, that’s nothing compared to the iPad. Apple moved 7.33 million iPads in Q4 – more than 3 million than the previous quarter.
That’s enough devices to think about, but there are also tons of new tablets running Google’s Android platform – and the new Blackberry Playbook tablet will be a hit.
All this adds up to a lot of mobile devices in the marketplace – new devices built for a world of digital media. Instead of throwing your slippers on and marching down the driveway to get your paper, you can just turn on your reader.

Same Old, Same Old

Some skeptics might argue new devices don’t change the problem. Publishers have been delivering online content for years and few have been able to drive significant profits from it. True, but these new devices dramatically change consumption habits. People may be much more likely to subscribe to content on a Kindle or an iPad because it’s cool. It’s a new format and it’s convenient.
One major factor that has limited the growth of online subscriptions for publishers is the media industry’s payment infrastructure. Most media conglomerates would like to control distribution and payments, limiting users’ ability to buy subscriptions from competitors. Some businesses have tried to organize publishers through partnership, but the models have failed to gain traction. Amazon, Apple and Google each now have a payment platform that simplifies digital content subscriptions for publishers and consumers alike… at a price of course.

New Payments Platforms

Both Apple and Google have launched services that allow publishers to control billing for digital content subscriptions distributed in apps – turning up the heat on competitor Amazon.
Apple’s subscription billing service lets publishers of magazines, newspapers, music and video set terms This essentially lets consumers buy content for any Apple device they have (not just limited to the iPad). By comparison, Google’s One Pass subscription publishing service makes digital content available across tablets, smartphones and websites – great news for the growing audience of Android users (the second most popular smartphone platform).
All this adds up to more options and flexibility for getting your favorite content. No longer do consumers have to subscribe from each publication’s website. Now they can get all their subscriptions on one platform (or three if you will).

The Downside

Apple takes its standard 30% cut of revenues from App Store purchases. Google OnePass also takes 30%. This may sound like a lot, until you realize that Amazon.com has charged publishers upwards of 70% in the past. It’s a good thing to have all three in the game, since it should drive the split down. There are concerns about the cable/satellite TV problem, where you might only be able to get one type of content on a particular platform. If publishers can keep pushing their content to all three, consumers will be much happier.
Of course, any of these revenue splits will make it difficult to generate significant profits – then again, when you consider the volume of devices in the market place already, and the limited selection of titles that have converted to the new format, there could be some meaningful short-term revenue gains for publishers if they convert their content to the new devices today (for example, you can’t get Men’s Health on a Kindle – you might be more likely to switch to a magazine you can get in digital form).
This is a much better deal for smaller publishers looking to build an audience. Google, Amazon and Apple deliver the audience for those that publish great content. Arguably a new wave of start-up magazines that opt to go all-digital will spring in the near future. Who will be the Angry Birds of digital magazines or newspapers?

For now, consumers are more likely to pay for content they can get on their Kindle, iPad or other tablet or reader – and that’s good news for publishers, Apple, Amazon and Google alike.
What do you think? Do these new devices and platforms create more opportunities for publishers? Do you think consumers are more willing to pay for content on these devices than online content or print subscriptions?

How to Increase Landing Page Conversions by 45%

Marketers are a nosy bunch, says the 60 Second Marketer. We want to know your name, age, gender, location, occupation, hobbies and pretty much anything else you are willing to tell us. And for the most part, we have good reason. We have been trained since Marketing 101 that the more information that we can gather about our consumers and prospects, the better.

If we know certain key facts about people, we can put relevant products and offers in front of them, increasing the likelihood of a sale. However, sometimes the tactics we use gather information, such as requiring users to create accounts or fill out lengthy contact forms, actually lower our ability to make a sale, says Nicole Hall, account manager with Mobilize Worldwide.

It's rare for someone to get excited about filling out an online form. And the people who do get excited by this probably aren't the people you'd want to be affiliated with anyway.

Take the example given in Luke Wroblewski’s book, Web Form Design: Filling in the Blanks about an ecommerce site that required users to register or login to make a purchase. The company surveyed their customers and found that both first time purchasers and returning users were frustrated by this seemingly unnecessary process. In an experiment, the company changed the wording on their site to read: “You do not need to create an account to make purchases on our site. Simply click Continue to proceed to checkout. To make your future purchases even faster, you can create an account during checkout.”

The results were an astonishing 45% lift in consumer purchases, which translates to $15 million in additional revenue in just the first month and $300 million over the first year.

And this does not appear to be an isolated example. Research conducted by Janrain and eMarketer reported that when encountered with a registration form, a mere 25% of respondents say they complete it and even worse, 17% are driven to competitors’ sites. And, in case you missed the irony, this is drawing from a pool of people who agreed to answer a survey about how willing they are to answer questions. Just imagine the responses of all those who blew off the survey!

Unfortunately, registration forms aren’t the only culprit of driving away prospects by being too invasive. Lengthy, over the top “Contact Us” forms can be just as dangerous. Imaginary Landscape, a web technology company, performed a study in which their website featured a contact us page with 11 questions and a contact page that had only 4 questions. In the 2 month study, the number of forms submitted on the 4-question contact us page increased 160% and the conversion rate increased 120% over the 11 question page.

This example highlights the simple fact that less is more. Once a prospect has gone to your contact page, they are already looking to engage with your brand, so don’t get greedy. In initial contact, ask only the necessary information to contact them again in the future, and leave the follow up questions for a later time.

The bottom line is that purpose of your site is to get customers to interact with your brand and make purchases, so don’t make them jump through hoops to do so. With online privacy concerns reaching a fever pitch and consumers’ demands for convenience at an all time high, asking too many questions can cause customers to put their credit cards back in their wallets and your competitors sites back on their screens.

Information is nice, but don’t let your love for statistics, Excel spreadsheets and pie charts get in the way of the main goal. The next time you are tempted to ask for your consumers’ favorite Beach Boys song before you allow them to purchase a beach towel, ask yourself if the information is worth the risk of alienating your consumers. It may not be.

How the 77-Million-Strong Millennials Will Reshape Marketplaces in the Decades to Come

Now it's the turn of the Baby Boom's children to shape American society, says Melissa S. Bristow, Kiplinger Managing Editor. The older half of Generation Y — also called the Millennials — are young adults, participating in the workforce, voting in elections, establishing households and in myriad ways making their presence felt in the workplaces and markets of the U.S.

About 77 million American Gen Yers were born over an 18-year span — 1981 through 1999. That's about the size of the Baby Boom, though Gen Y is a smaller share of the population. In 1970, for example, Baby Boomers accounted for nearly half of the total U.S. population, while today only about a fourth of Americans are part of Generation Y.

The single most important difference between Gen Y and earlier generations: The Millennials' familiarity with technology. Gen Y cut its teeth on computers and digital media. More than any other population segment, Gen Yers see technology as enhancing the quality of their lives — making work easier, allowing them to manage time better and bringing family and friends closer. 90% of Gen Yers over the age of 18 use the Internet. 75% use social networking — Facebook, LinkedIn, etc. 60% of them access the Web wirelessly while on the go. 83% keep their cell phones nearby, day and night, awake or sleeping. Two-fifths don't even have a land line.

Gradual racial and ethnic shifts in the population as a whole are more concentrated in younger generations because most immigrants are young adults and because Hispanic families in the U.S. tend to have more than the average number of children. So, only about 60% of Gen Yers over the age of 18 are white, compared with 65% of everyone in the U.S. About 20% of young adult Millennials are Hispanic. About 13% of them are black. In contrast, only 10% of Baby Boomers are Latino, and 11% are black. For now, Generation X — the small cohort between the Baby Boom and Gen Y and now aged 30-45 — has the highest share of foreign-born Americans, largely because they are the same age as most new immigrants. As Gen Y moves into that age bracket, its share of nonnatives will swell.

In addition to possessing a technological savvy that can't be beat, Gen Yers are well-schooled. One in five Millennials over the age of 18 have already graduated from college; one fourth of them are working on graduate degrees. Another fourth are in college and about 30%, though not now in school expect to earn a degree. They're on track to beat all previous generations. Gen Yers are also well traveled. About a quarter of a million Gen Yers study abroad each year. They're culturally aware thanks in part to their foreign studies and to the diversity of their peer groups. And Millennials are used to working in groups. From preschool on, they've been taught to work cooperatively, with stronger team members helping out others.

When it comes to money, Gen Yers are different from their elders, but may come to resemble previous generations more as they pass through the life stages of marriage, family, retirement and so on. For now, they're less acquisitive than their Baby Boomer parents, steering away from what they see as conspicuous consumption. When they do spend, Gen Yers are value conscious — maybe because technology makes finding the best buy a no-brainer. Traditional advertising doesn't have much street creed. Millennials are more likely to buy based on peer recommendations. And they're a bit more willing than older shoppers to pay higher prices to protect the environment.