innovations in magazines 2011
TRANSCRIPT
www.innovation-mediaconsulting.com
INNOVATION
INNOVATION MEDIA CONSULTING
WORLD LEADERS IN HELPING PUBLISHERS RE-INVENT THEIR TITLES FOR THE DIGITAL AGE
DESIGN + CONSULTANCY
INNOVATION
INNOVATION
‘GOOD JOURNALISM IS GOOD BUSINESS’
INNOVATION
1. HOW TO PROFIT FROM SOCIAL MEDIA
2. WHERE IS THE MONEY IN THE DIGITAL AGE?
3. HOW DO WE GROW THE PRINT MAGAZINE
4. ARE APPS OUR SALVATION?
INNOVATION
INNOVATION
‘LIFE WAS EASIER WHEN AN APPLE AND A BLACKBERRY WERE JUST FRUITS’
INNOVATION
‘LIFE WAS EASIER WHEN AN APPLE AND A BLACKBERRY WERE JUST FRUITS…
BUT IT’S NOT AS EXCITING AND POTENTIALLY PROFITABLE
AS IT IS TODAY’
INNOVATION
INNOVATION
iPad IS THE GREATESTPLATFORM INNOVATION SINCE GUTHENBERG - LACK OF INNOVATION
FROM PUBLISHERS
INNOVATION
RATING
IPad Apps
2.2
Magazines(Source App
Store)
GQ Magazine
Vanity Fair
National Geographic
Paris Match
Der Spiegel
L’express
Wired
Time Magazine
Newsweek
The New Yorker
INNOVATION
INNOVATION
AVERAGE
RATING
2.5
IPad Newspaper
s(Source App
Store)
USA Today
Die Welt
De Standaard
The New York Times
Financial Times
New Zealand Herald
Evening Standard
Le Monde
Corriere della sera
INNOVATION
INNOVATION
SENSE OF SALVATIONPERHAPS OUT OF DESPERATION
INNOVATION
WILL THE IPAD AND TABLETS OFFERA SECOND LIFE TO MAGAZINES?
INNOVATION
YESIF PUBLISHERSRE-INVENT THEIR TITLESNOIF WE RE-PURPOSE
INNOVATION
HEARST$10 MILLION IN SUBSCRIPTION BY SUMMER
CONDE NAST$15 MILLION IN 2011 IN SUBSCRIPTIONS AND AD REVENUE
INNOVATION
YOU CANNOTPOUR OLD WINE
INTO NEWBOTTLES
INNOVATION
WE HAVE TO REINVENT THE WAY WE TELL
STORIESIT'S THE JOURNALISM NOT THE PLATFORM
INNOVATION
NEW GRAMMAR FOR NEW MEDIUM
INNOVATION
STORIES YOU CANREAD
WATCH AND
TOUCH
INNOVATION
DESIGN FOREYESAND
FINGERS
INNOVATION
EXPERIENCE MORE IMPORTANT THAN BRAND
INNOVATION
THE iPad as PDF?
INNOVATION
THE iPad as A MAGAZINE ON
STEROIDS?
INNOVATION
THE iPad as SHOVELWARE?
INNOVATION
MORE PRINTY LESS WEBBY
NEITHER PRINTY OR WEBBY
INNOVATION
IT'S AN APP!
INNOVATION
WE NEED MORE DEMOSAND LESS MEMOS
INNOVATION
DIFFERENT CONTENT FOR DIFFERENT PLATFORMS
PAPER - LONG NARRATIVETABLET - DEPTH AND EXPERIENCE
MOBILE - INSTANT NEWSINTERNET - BREAKING NEWS,
BROWSING, ARCHIVES, AGGREGATING, HYPERLINKING...
INNOVATION
THE iPad as InfographicsUnique VideoSlideshows
Caricatures/Art
INNOVATION
ONE MAG MANY APPS
INNOVATION
WE MUST UNBUNDLE THE BUNDLE
INNOVATION
DISAGREGGATE 3 STRANDS
INFORMATION
SERVICES
ISSUES AND PASSIONS
INNOVATION
TABLETS AS PREMIUM
INNOVATION
iPad means iPay
INNOVATION
FREE is very EXPENSIVE
INNOVATION
PRODUCE MORE FOR THOSE WHO PAY
AND LESS FOR THOSE WHO DO NOT PAY
INNOVATION
SINGLE ISSUE SALES DO NOT WORK
SUBSCRIPTION IS THE WAY
INNOVATION
INNOVATION
WE ARE MOVING TOWARDS AN APP-
BASED WORLD WHETHER IT BE
TABLETS OR MOBILE – WHICH RIGHT NOW
HAS A MUCH BIGGER POTENTIAL
INNOVATION
INNOVATION
INDIA 2007
INNOVATION
INNOVATION
INDIA 2009
INNOVATION
INNOVATION
INDIA TODAY
INNOVATION
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THE INNOVATION:
• • Personalizing your Personalizing your digital information feed digital information feed in a magazine format in a magazine format
on a tableton a tablet• • Taking your social Taking your social
media feed and media feed and blending it with a news blending it with a news
feed and slick picsfeed and slick pics
WHAT WE THINK
• • Flipboard and then ZiteFlipboard and then Zite beat us to the punch. beat us to the punch.
• • Simplifying and Simplifying and aggregating our daily aggregating our daily information flow is a information flow is a
priceless service, AND priceless service, AND it’s done elegantly, it’s done elegantly, easily for the usereasily for the user
INNOVATIONINNOVATION
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THE INNOVATION:
• • Connecting with Connecting with readers at the precise readers at the precise
moment when they moment when they need information in a need information in a
particular locationparticular location• • Hooking up with Hooking up with high-profile tech high-profile tech
leaders to expand leaders to expand brand awarenessbrand awareness
THE INNOVATION:
Bon Appetit, Good Bon Appetit, Good magazine, New York, magazine, New York,
Advertising Week, Advertising Week, Vogue, People Vogue, People all have all have tens of thousands of tens of thousands of
followers they wouldn’t followers they wouldn’t havehave
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WHAT WE THINK:
Very simply, we need Very simply, we need LOTS of platforms to LOTS of platforms to leverage our content leverage our content
and reach our and reach our readers when THEY readers when THEY
want us to reach want us to reach them, not the other them, not the other
way around!way around!INNOVATIONINNOVATION
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THE INNOVATION:
• • Building (and selling) Building (and selling) social games around your social games around your
core contentcore content• • Elsevier created “Top Elsevier created “Top Doc” medical diagnosis Doc” medical diagnosis
gamegame• • National GeographicNational Geographic: : “Herod’s Tomb,” “Rain “Herod’s Tomb,” “Rain
Forests”Forests”
WHAT WE THINK:
• • Casual gaming is Casual gaming is exploding (200 million exploding (200 million
users play monthly). They users play monthly). They are yet another audienceare yet another audience• • Casual games deliver Casual games deliver content, reach a wider, content, reach a wider, younger, more female younger, more female audience, and are very audience, and are very
addictiveaddictiveINNOVATIONINNOVATION
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THE INNOVATION:
• • Selling Selling subscriptions via subscriptions via mobile devicesmobile devices
• • Selling “snack-Selling “snack-sized” magazines sized” magazines
for mobile for mobile consumptionconsumption
WHAT WE THINK:
• • More and more More and more consumers are living on consumers are living on
their mobile devicestheir mobile devices• • This is another This is another
example of going where example of going where the audience isthe audience is
INNOVATIONINNOVATION
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THE INNOVATION:
• • Offer fun, Offer fun, valuable, unique valuable, unique content instantly content instantly
via mobile phonesvia mobile phones• • Make print pages Make print pages
come alive in come alive in creative wayscreative ways
• • Let’s try it right Let’s try it right nownow
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WHAT WE THINK:
• • Augmented reality Augmented reality (AR) like 3D is fun ... (AR) like 3D is fun ... but to what end? Is it but to what end? Is it
worth the investment?worth the investment?• • QR codes or 2D tags QR codes or 2D tags deliver useful content deliver useful content
instantly on a instantly on a increasingly ubiquitous increasingly ubiquitous platform. A no-brainer. platform. A no-brainer.
INNOVATIONINNOVATION
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THE INNOVATION:
• • The year 2010 was The year 2010 was a banner year for 3D a banner year for 3D
coverscovers• • From glasses to From glasses to augmented reality augmented reality
3D covers and 3D covers and spreads, magazines spreads, magazines pulled out the stopspulled out the stops
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WHAT WE THINK:
• • 3D is not a gimmick; 3D is not a gimmick; it drives sales and it drives sales and
boosts brand boosts brand awareness, but it’s a awareness, but it’s a once a year type of once a year type of
tactictactic• “• “What would people What would people
most like to see in most like to see in 3D? Probably a naked 3D? Probably a naked
lady” lady” — — PlayboyPlayboy Founder Hugh Hefner Founder Hugh Hefner
INNOVATIONINNOVATION
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WHAT WE THINK:
• • 3D combined 3D combined with Augmented with Augmented
Reality can be a lot Reality can be a lot of fun and of fun and
generate a lot of generate a lot of buzzbuzz
INNOVATIONINNOVATION
INNOVATIONINNOVATION
JOURNALISTS SHOULD SPEND 10% OF THEIR TIME ON
SOCIAL MEDIA
VG NORWAY & OTHERS
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THE INNOVATIONS:
• • Every staffer must Every staffer must blog blog
• • High-quality High-quality outside bloggers are outside bloggers are
integrated integrated • • Advertisers are Advertisers are invited to publish invited to publish content and “join content and “join the conversation the conversation
with readers”with readers”
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WHAT WE THINK:
• • Staff blogs increase Staff blogs increase staffers’ connections staffers’ connections
with readerswith readers• • Outside blogs Outside blogs
increase breadth, increase breadth, depth of contentdepth of content
• • Advertiser blogs Advertiser blogs create relationships create relationships
w/audiencew/audienceINNOVATIONINNOVATION
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THE INNOVATION:
•Promoting your Promoting your content AND your content AND your
advertisers content advertisers content (but NOT their (but NOT their
products) with regular products) with regular fan page & Twitter fan page & Twitter
feedsfeeds
WHAT WE THINK:
•ContigoContigo in Brazil: in Brazil: Subscriptions up 16% Subscriptions up 16%
after creating after creating Facebook campaign, Facebook campaign,
which also was bulk of which also was bulk of 46% ad increase 46% ad increase
’09-’10’09-’10INNOVATIONINNOVATION
WHAT WE THINK:
• • Facebook, Twitter Facebook, Twitter followers are fans of followers are fans of
choice, promoting you choice, promoting you exponentially to friends, exponentially to friends, driving traffic, building driving traffic, building
loyalty (which loyalty (which advertisers love)advertisers love)
INNOVATIONINNOVATION
WHAT WE THINK:
WHY is this critical? The WHY is this critical? The NEW metric: NEW metric:
ENGAGEMENT. ENGAGEMENT. No longer just PVs, No longer just PVs,
uniquesuniquesNow: FB connections, Now: FB connections,
RTs, Social bookmarks, RTs, Social bookmarks, Tweets, comments, re-Tweets, comments, re-
links, etc.links, etc.INNOVATIONINNOVATION
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THE INNOVATION:
• • Reader-generated Reader-generated contentcontent
• • More magazines More magazines integrating itintegrating it
• • Some 100% RGC Some 100% RGC issuesissues
• • oliveolive in UK: 13% in UK: 13% sales jumpsales jump
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1 WHAT WE THINK:
• • RGC is absolutely RGC is absolutely essentialessential
• • YOU can no longer YOU can no longer create all the create all the
“answers” to readers “answers” to readers information needs in information needs in
your nicheyour niche• • RGC increases RGC increases relevance, reach, relevance, reach,
readership, revenuereadership, revenueINNOVATIONINNOVATION
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WHAT WE THINK:
• • Let’s see: Sell subs on Let’s see: Sell subs on platform w/600 million platform w/600 million
membersmembers• • Keep ALL subscribers Keep ALL subscribers
informationinformation• • What’s NOT to like?What’s NOT to like?
• • Social coupon services Social coupon services exploding & are another exploding & are another
platform for usplatform for usINNOVATIONINNOVATION
THE INNOVATION:
• • Selling subs on Selling subs on Facebook (where readers Facebook (where readers spend 1/3 of their online spend 1/3 of their online
timetime• • Offer stories on Offer stories on
Facebook w/ads and Facebook w/ads and subscription optionssubscription options• • Use social coupon Use social coupon
services like GroupOn for services like GroupOn for sub discountssub discounts
DIGITAL FIRST, YES. BUT DIGITAL ONLY IS
NOT ENOUGH
FROM THE DIGITALTO THE PHYSICAL
WORLD
FROM DIGITS
BACK TO ATOMS
THE LONELIEST
GENERATION OF
CONSUMERS -
UNILEVER EXECUTIVE
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THE INNOVATION:
• • Taking successful Taking successful web-only sites into web-only sites into
printprint• • Determining what Determining what works on web and works on web and
what works on what works on paperpaper
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WHAT WE THINK:
• • A vote of A vote of confidence in our confidence in our
historical platform!historical platform!• “• “If you enjoy If you enjoy
reading, or if you reading, or if you love to be stimulated love to be stimulated by great visuals, or if by great visuals, or if you are looking to be you are looking to be surprised, then print surprised, then print
can still win” can still win” — — Future Publishing Publisher Nick MerrittFuture Publishing Publisher Nick Merritt
INNOVATIONINNOVATION
INNOVATION
THE PAPER OF THE 21ST CENTURY?
INNOVATION
TABLETS OR PAPER?
NOTABLETS AND PAPER
PRINT IS ALIVE AND WELL AND WILL
REMAIN A PROFITABLE OPTION FOR DECADES
– BUT NOT AS WE KNOW IT
INNOVATION
Paper as Paper as PREMIUMPREMIUM
Haute Couture Haute Couture
Online and Mobile as Online and Mobile as MASS MEDIUMMASS MEDIUM Pret a Porter Pret a Porter
INNOVATION
INNOVATION
Less Circulation + Revenue
CHARGE MORE
1X5 MULTIPLE
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INNOVATION:
• • Identifying a Identifying a brand with a global brand with a global
cause that cause that resonates with resonates with readers: World readers: World Kindness DayKindness Day
• • Partnering with Partnering with corporate and corporate and media partnersmedia partners
WHAT WE THINK:
• • It works: It works: Website traffic Website traffic
doubled; ad doubled; ad revenue revenue
increased 25%; increased 25%; newsstand sales newsstand sales
went up 15%went up 15%INNOVATIONINNOVATION
EDITORIAL AND BUSINESS
INTEGRATION IS ESSENTIAL TO
COMPETE IN THE DIGITAL AGE –
COOPERATION IS NOT INTEGRATION
INNOVATION
YOU CANNOT EXPECT DIFFERENT RESULTS BY
DOING THINGS THE SAME OLD WAY
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THE INNOVATION:
• • Among many other Among many other industry leading industry leading
innovations, innovations, Entertainment Entertainment
WeeklyWeekly has led the has led the way in creating a 24-way in creating a 24-
7 content flow for 7 content flow for their readerstheir readers
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INNOVATION
PAPER VERSUS ONLINE –
IT’S A FALSE DICHOTOMY
INNOVATION
NEWSROOMS IN A PERMANENT STATE OF BETA
INNOVATION
WE NEED MANY, MANY DEVELOPERS
IN-HOUSE AND OUTSOURCED
INNOVATION
1 DEVELOPER FOR EVERY 5 JOURNALISTS -
BENCHMARK
INNOVATIONINNOVATION
ONE DIGITAL KITCHEN MANY
DIFFERENT RESTAURANTS
AUTHOR ONCE PUBLISH EVERYWHERE
THE NEW HOLY TRINITY:
JOURNALIST + DESIGNER + DEVELOPER
WORKING TOGETHER
INNOVATION
Tablet & Mobile Workflow
INNOVATION
WHERE’S THE MONEY?
INNOVATION
4 MAIN DRIVERS
OF DIGITAL REVENUES
INNOVATION
3 WE DO NOT KNOW OR
UNDERSTAND
INNOVATION
E-COMMERCE
SOCIAL CONTEXTUAL
ADS AND COUPONS
LEAD GENERATION
INNOVATION
SUBSCRIPTIONS & SINGLE ISSUE
COPY SALES
1WE THINK WE KNOW
AND UNDERSTAND
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THE INNOVATION:
• • Enable purchases Enable purchases from your Facebook, from your Facebook, website or app pageswebsite or app pages• • Use existing content Use existing content
to inform readers’ to inform readers’ purchasing decisionspurchasing decisions
• • Increase revenue via Increase revenue via % of sale% of sale
WHAT WE THINK:
• • If our goal is to be If our goal is to be essential in our readers’ essential in our readers’ lives, enabling informed lives, enabling informed purchases meets that purchases meets that
missionmission• • Offer complete shopping Offer complete shopping
experience. Why send them experience. Why send them elsewhere?elsewhere?
• • Make more money? Duh!Make more money? Duh!INNOVATIONINNOVATION
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THE INNOVATION:
• • UK’s Emap — From free UK’s Emap — From free to paid: 20% increase in to paid: 20% increase in subs; 5% renewal hike; subs; 5% renewal hike; increased ad revenueincreased ad revenue• • Charge for unique Charge for unique
content available nowhere content available nowhere elseelse
• • Create new pay-for Create new pay-for products, like webinars, e-products, like webinars, e-learning modules, special learning modules, special
publicationspublications
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WHAT WE THINK:
• • Produce more for those Produce more for those who pay than for those who pay than for those
who don’twho don’t• • No extra value having No extra value having
exactly same pub on app exactly same pub on app as you already have in as you already have in
print or onlineprint or online• • Create completely Create completely
different but different but complementary contentcomplementary content
INNOVATIONINNOVATION
TO CHARGE OR NOT TO
CHARGE FOR ONLINE CONTENT?
TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT?THAT IS NOT THE QUESTION
TO CHARGE OR NOT TO CHARGE FOR ONLINE CONTENT?THAT IS NOT THE QUESTIONTHE QUESTION IS, WHAT CAN WE CHARGE FOR?
“The internet replaced the economics of scarcity with economics of abundance and all of us are dealing with the consequences of that.”Eric Schmidt, Google – Eric Schmidt,
CEO and Chairman, Google Inc.
ECONOMICS 101"... (Economics is) the science which studies human
behaviour as a relationship between ends and scarce means which have alternative uses."
– Lionel Robbins, 1932
Scarcity means that available resources are insufficient to satisfy all wants and needs.
Absent of scarcity and alternative uses of available resources there is no economic problem.
Wikipedia-Economics
PEOPLE WILL NOT PAY FORUSEFULNESS,RELEVANCE,VALUE
PEOPLE WILL CONSUMEWHAT IS USEFUL, RELEVANT,VALUABLE…… BUT WON’T NECESSARILY PAY FOR IT
ONLY WHAT IS SCARCECAN BE CHARGED FOR
WE HAVE TO FIND SCARCITY
GOOGLE HAS FOUND IT ON INTERNET
GOOGLE HAS FOUND IT ON INTERNETPROPRIETARY ALGORITHM
GOOGLE HAS FOUND IT ON INTERNETPROPRIETARY ALGORITHM OPPORTUNE CONTEXT
GOOGLE HAS FOUND IT ON INTERNETPROPRIETARY ALGORITHM OPPORTUNE CONTEXTLIMITED SEARCH TERMS
WHERE IS THE SCARCITY?
WHERE IS THE SCARCITY?UNIQUE CONTENT
WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITY
WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITYUNIQUE CONVENIENCE
WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITYUNIQUE CONVENIENCEUNIQUE PACKAGING
WHERE IS THE SCARCITY?UNIQUE CONTENTUNIQUE UTILITYUNIQUE CONVENIENCEUNIQUE PACKAGINGUNIQUE EXPERIENCE
FREEMIUM MODEL
ABUNDANT CONTENTFREESCARCE CONTENTPAY
INNOVATIONINNOVATION
WHAT ABOUTADVERTISING?
WHAT ABOUT ADVERTISING?OVERABUNDANCE OF BULK CONTACTS DRIVES CPM TO ZERO
WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS
WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXT
WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILE
WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILELOCATION
WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILELOCATIONINTENTION
WHAT IS POTENTIALLY SCARCE?MESSAGE RICHNESS CONTEXTAUDIENCE PROFILELOCATIONINTENTIONFULFILMENT
OUTDOOR PRINT RADIO TV WEB MOBILE TABLET
MESSAGE
CONTEXT
AUDIENCE PROFILE
-
LOCATION- - -
INTENTION - - - -
FULFILMENT-
POTENTIAL TO DELIVER
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THE INNOVATION
• • Meredith took client Meredith took client from display & banner from display & banner ads to multi-channel ads to multi-channel integrated marketingintegrated marketing• • Meredith produces Meredith produces
paid magazine (1 million paid magazine (1 million subscribers), weekly e-subscribers), weekly e-mails, recipe website, mails, recipe website,
iPhone app (iFood iPhone app (iFood Assistant), iPad app (Big Assistant), iPad app (Big
Fork Little Fork) and Fork Little Fork) and branded entertainment branded entertainment
program program
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WHAT WE THINK:
• • Promotion in multiple Promotion in multiple channels increases the channels increases the amount of purchasesamount of purchases• • Either you help your Either you help your
clients create clients create integrated marketing integrated marketing
campaigns or someone campaigns or someone else will.else will.
INNOVATIONINNOVATION
HOW DO WEFIND THE MONEY?
HOW TO FIND THE MONEY?FOCUS ON YOUR CLIENTS’ NEEDS…
HOW TO FIND THE MONEY?FOCUS ON YOUR CLIENTS’ NEEDS……AS OPPOSED TO YOUR PRODUCTION NEEDS
FROM “MEDIA IN A BOX”…
Editorial/Programming
Finance
Admin
HR
IT
Legal
TV
Production
Marketing
Ad Sales
Editorial
Printing
Circulation
Ad Sales
Editorial
Printing
Circulation
Ad Sales
Newspaper
Magazine Radio
Editorial/Programming
Production
Marketing
Ad Sales
MEDIA INC.
TO A COMMERCIAL ENGINE
AUDIENCE
EDITORIAL
MARKETINTELLIGENCE
SUPPORTFUNCTIONS
BRANDS AD SALES
ADVERTISER
WHERE IS THE MONEY?
WHERE IS THE MONEY?YOUR CLIENTS HAVE IT, SO…
WHERE IS THE MONEY?YOUR CLIENTS HAVE IT, SO…… FOCUS ON THEIR NEEDS
FIND YOURSCARCITY…
FIND YOURSCARCITY…… AND YOU WILL FIND THE MONEY
GOOD JOURNALISM IS SCARCE
INVEST IN QUALITY SCARCE JOURNALISM AND THE MONEY WILL
COME
INNOVATION
WE ARE THE WINE NOT THE BOTTLE
SIMPLICITY IS THE DRIVER OF
INNOVATION
Dom Sagolla, co-creator of Twitter
IT'S TIME TO INNOVATE
the end
THANK YOU
WWW.INNOVATION-MEDIACONSULTING.COMSENOR@INNOVATION-MEDIACONSULTING.COM
TWITTER - @JUANSENOR
Thank you!
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