1. The voice of professional publishers Nicola Rowe Director of Circulation & Member Services Bladen in de Balie 10 September 2012 Magazine Retail Sales: A UK Perspective

2. The voice of professional publishers Market overview

3. The voice of professional publishers Consumer magazines – Key figures 2,873 £1.46bn 1.22bn Number of consumer titles in the UK Retail Sales Value (Newstrade sales) Est. copies sold or distributed annually Brad 2011 ABC 2010/2011 80% Share of magazines sold via retail Wessenden Marketing

4. The voice of professional publishers Supply chain for consumer magazines 2 54,000 5 Number of UK wholesalers Number of retailers in the UK selling magazines Number of major UK distributors PUBLISHER DISTRIBUTOR WHOLESALER RETAILER

5. The voice of professional publishers Retailer overview 2 54,000 5 Number of UK wholesalers Number of retailers in the UK selling magazines Number of major UK distributors Major supermarkets44% UP (30%) WHSmith14% DOWN (18%) Other multiple retailers17% DOWN (19%) Independents25% DOWN (33%) 2012 % MARKET SHARE (2004)

6. The voice of professional publishers Consumer magazines – volume & value trend Sales value: -8% Sales volume: -10%

7. The voice of professional publishers Magazine sectors doing well…and not so well… Teenage Lifestyle +55% (new launches) Pre-school Children +12% Women’s Slimming +10.5% News & Current Affairs + 5% Gardening+0.5% Camping/Walking/ Climbing+ 3% ×Women’s Interest – Lifestyle/Fashion- 5% ×Women’s Interest - Weeklies- 11% ×Motoring & Motorcycling-11% Source: ABC Jan-Jun 2012

8. The voice of professional publishers The role of the PPA

9. The voice of professional publishers P PROMOTE P PROTECT A ADVISE The role of the PPA

10. The voice of professional publishers P PROMOTE P PROTECT A ADVISE

11. The voice of professional publishers PPA’s Retail Marketing Group

12. The voice of professional publishers PPA’s Retail Marketing Group (RMG) Dedicated to promoting the magazine category to the retail sector… Collaboration between publishers & distributors Focus on multiples and independents Provides a platform for retailers to communicate with the industry

13. The voice of professional publishers Structure & budget Retail Marketing Steering Group Multiple Sub-Group Independent Sub-Group Ad Hoc Projects A budget of £37,000 allocated for activity in 2012

14. The voice of professional publishers RMG activities & initiatives

15. The voice of professional publishers 4 key words… 1.ENGAGEMEMT 2.COLLABORATION 3.COMMUNICATION 4.INFORMATION

16. The voice of professional publishers ‘PPA Retail’ website

17. The voice of professional publishers Feedback from multiple retailers 1.Desire for industry view of current market performance 2.Lack of consistent top level industry measures 3.Help with internal ‘education’ about magazine industry 4.Shopper insight regarding magazines 5.Lack of industry-wide promotional initiatives

18. The voice of professional publishers Working with multiple retailers RETAIL FORUM & MAGSELL AWARDS To engage delegates in the current RMG projects To encourage collaboration on industry initiatives To give retail delegates a range of new robust arguments to take back to their businesses To ensure that retail delegates feel confident about the future of the magazine category To recognise & reward excellence in magazine retailing (through the awards)

19. The voice of professional publishers Working with multiple retailers Retail buyer induction programme Research Cross-category promotions Online copy sales

20. The voice of professional publishers Working with independent retailers ‘Explore the World Of Magazines this Summer’….. Point of Sale campaign Providing the tools to highlight the magazine category against a very busy retail background in the Jubilee/Olympic year. Two posters (A3 & A4 sizes); shelf talkers; covering letter Material distributed to almost 10,000 retailers

21. The voice of professional publishers ‘Just Ask’…. Longstanding initiative which the PPA has been running with independent retailers to encourage Shop Save and Home News Delivery (HND) Consistent industry brand Aim to increase awareness among consumers Promoted at retail – and also in-magazine £1 in every £7 spent at retail is delivered to people’s doors. 1.8 million households have a newspaper or magazine delivered 26% of national newspaper sales are home delivered 5% of magazine sales are home delivered There are 18,000 HND retailers Working with independent retailers

22. The voice of professional publishers ‘In-store subscriptions trial’…. Small but pioneering trial to test in-store magazine subscription offer exclusively through independent retailers. Designed to test consumers’ appetite for in-store magazine promotions based on subscription-style offers. 4 magazines for the price of 3 Money paid up-front; loyalty card given to consumer

23. The voice of professional publishers Measuring success A challenge…! Levels of engagement is a key measure PPA as the ‘go to’ authority about magazines Maintaining space allocated to the category But not forgetting…strategic/ political importance

24. The voice of professional publishers Some key lessons… 1.Collaboration & communication is key 2.Information is power (about the category, the market, consumer insight) 3.Have a focal point, such as a dedicated website or annual event 4.We need to realise who the competition is 5.Play the long game – it’s about protecting space 6.We can no longer rely on magazines selling themselves!

25. The voice of professional publishers Publisher-driven initiatives

26. The voice of professional publishers Designed to maximise visibility of launches Promotional unit used to manage oversize partworks Prime shared display space booked to drive sales RSV generated via Tesco for the launch period of each partwork Dora the Explorer: £200,000 RSV How Your Body Works: £50,000 RSV My Animal Farm: £140,000 RSV Rival partwork publishers worked together to share space at supermarkets

27. The voice of professional publishers Cross-portfolio promotion by one publisher Ran in two major supermarkets Some titles saw increases of +50% “Buy any 2 magazines & pay £6” promotion

28. The voice of professional publishers Seasonal promotion Featured children’s comics Promotion ran during Easter period – prime time for comic sales Side frame unit used to promote comics in a themed promotion Increased sales by between 15-20%

29. The voice of professional publishers Promotion with supermarket own-brand magazine ‘Multi-pack’ involving Sainsbury’s magazine & Good Housekeeping magazine Promotion encouraged sampling to a potential new audience Incremental sales of +25% generated

30. The voice of professional publishers Promotional tie-in with major event High impact promotional space in all major multiple retailers Olympic supplement included within magazine Cover price increased from £1.40 to £2 On sale 3 days early in parts of UK to capitalise on Olympics 32% sales uplift – highest ever!

31. The voice of professional publishers Launched from a digital product with 162,000 readers Launched off the back of a successful website. Publishers using augmented reality to bring magazines to life Magazines & the link to digital

32. The voice of professional publishers And finally….bringing magazines to life…

33. The voice of professional publishers Thank you! nicola.rowe@ppa.co.uk