Advertising Today and Tomorrow

Lee Jones VP/Publisher Inc. Magazine February 14, 2003

Advertising Today and Tomorrow Agenda

MAGAZINE MARKETPLACE TODAY

Circulation Challenges

Audience Trends

Ad Page Analysis

The Sales Environment

Profit Pressure

OPPORTUNITIES FOR TOMORROW

Brand Extensions

Customization

Harnessing Technology

MAGAZINE MARKETPLACE TODAY

Circulation Challenges

Newsstand

Awareness of Cover Treatment

Placement/Size of Publication

Concentration/Distribution in Key Metros

Subscriptions

Stimulate Growth

Develop Strategic Partners

Invest in DTP

Circulation Profitability

Tighter Management of Existing Draw

Increase Basic/Cover Price

Audience Trends

Audience Declines

Business Book Analysis - Steady Decline over Past 5 Years

Marketplace Factors - Economy, Promotion, Competition

Strategy: Focus on the Primary Reader

Position Magazine to its Core Audience

Identify with Your Audience Needs

Business Audience Trend Analysis Five Year Total Audience Trend

Fall 1998 – Fall 2002Inc. vs. BusinessWeek, Forbes, Fortune & Entrepreneur

0

1,000

2,000

3,000

4,000

5,000

6,000

Inc 2,073 1,855 1,770 1,728 1,905 1,724 1,494 1,398 1,170

Bweek 4,937 4,527 4,194 4,263 4,311 4,424 4,519 4,216 4,314

Forbes 3,953 4,172 4,259 4,472 4,576 4,336 4,220 4,453 4,485

Fortune 3,700 3,852 4,008 3,722 3,787 4,115 4,155 4,048 3,830

Entrpnr 2,097 2,110 2,063 2,109 2,356 2,561 2,374 2,180 1,971

F 98 S 99 F 99 S 00 F 00 S 01 F 01 S 02 F 02

Audience (000’s)

Ad Page Analysis

Ad Page Decline

Total Ad Pages in 2002 at Lowest in 6 Years

13,645 Total 2002 Ad Pages in Business Book Category - down 44.5% from a peak in 2000

$320 million in lost revenue!

Business Magazines - Ad Page Trend ( Inc., Fast Company, BusinessWeek, Forbes, Fortune, Entrepreneur, FSB )

0

5,000

25,000

20,000

15,000

10,000

30,000

1998 1999 2000 2001 2002

17,461 pgs.

20,147 pgs.

24,619 pgs.

15,424 pgs.

13,645 pgs.

Competitive Business Book Outlook

Smart Business

Your Company

e-Company

Industry Standard

Line 56 DarwinCity Business

Journals

The Sales Environment

Challenges:

Reduced Staff

RFP Process

Shorter Turnaround Time

Limited Face-Time with Client/Buyer

Unique Added-Value Programs

Pricing/Discounts

“Established” Book Preference

Profit Pressure

ROI Demands

Invest in the Brand

Enhance Editorial Product

Continue to Build Quality Circulation

OPPORTUNITIES FOR TOMORROW

Brand Extensions

Expand the Brand

International Print Opportunities (i.e. Inc. China - April 2003)

Conferences and Seminars

Content Licensing

Strategic Partnerships (i.e. U.S. Chamber of Commerce, SCORE, SBA)

Develop Media Relationships (i.e. Radio, T.V.)

Customization

Category/Industry Specific Efforts

Custom Published Magazines

Custom-Developed Inserts/Sections

Direct Response Initiatives

Vertical Business Segments

Harnessing Technology

Production

Going Digital (FTP)

Distribution

Digital/Electronic Delivery (ZINIO)

CRM/Salesforce Automation

One Point of Interface (account information, production, billing etc.)

HAVE AN INC.REDIBLE

VALENTINE’S DAY!