1	E-Publications: The New Market, The New Technologies March 9, 2005
2	Agenda Texterity Overview Creating Demand for Digital Editions Successful Models: Motivating Subscribers Case Studies Summary / Futures
3	1. Texterity Overview
4	Overview History/Evolution Systems Integrator in SGML/XML for publishers since 1991 Raised VC (2001) to exploit electronic publishing system Experience includes magazines, catalogs, e-books Digital Magazine Solution launched in 2003 Only requires browser; no downloads or applications Digital Delivery via E-Mail or Web Complete Tracking and Reporting Subscriber Management with Access Control Magazine customers include… Hearst, Condé Nast, Dow Jones, Penton Media, CMP, Ziff Davis, Northstar, Time Inc., GIE Media, Group Publishing, Hanley Wood, Rogers, RFA Media, Grand View Media, Fawcette, EH Publications
5	Publishing Industry Experience Extensive experience in transforming publisher content and creating new products Learning the “hard way” what works – and what does not! Survey system integrated with digital delivery Survey programs help measure usability, acceptance, value of digital editions to readers and advertisers Includes price points for bundled offers Pioneered innovative new subscription selling programs “Sampling”, “Instant Fulfillment”, “Companion Delivery” Active involvement with key industry groups BPA Worldwide & BPA Digital Task Force American Business Media Custom Publishing Council
6	Customers and Partners
7	Representative Publications
8	2. Creating Demand for Digital Editions
9	Circulation-Building Programs Instant Digital Fulfillment 1^st Issues – fill the 6-8 week print delivery gap Subscription premiums, Gift subscriptions Internet Digital Sampling AdSense/Overture (PPC) or organic search (“Googlized” content) House site – “Try a Free Issue” (register and receive) Companion Delivery Print + Digital delivery to cement reader relationship Great solution for international, “avid” readers Digital delivery can support the core magazine business by cost-effectively increasing print circulation
10	Customer Perspective: Must be Engaging Exciting Visual Format Digital “replica” of complete issue, but can be much more... Should promotes publishers brand (layout, colors, options) Easy to Use, Fun, Involving Any browser, any place: no downloads or applications Enhances magazine navigation (links to ads, URLs, emails) Generates passalong enthusiasm (“Send to a Friend”) Enhanced with “rich links”, “rich media” and “rich connections” Becomes essential Archive can be searched Current subscribers get value-added access to back issues Online (“immediate gratification”) or offline should both be available With the right feature set, studies show that readers are enthusiastic about the digital magazine
11	Digital Must Support Advertising Track usage and ad click-through Issue-by-issue open rates, read rates, and ad clicks Individual usage & time spent per page Create web site products from special sections Increase distribution of sponsored content to target audiences Improve demographics of magazine Attracts younger readers with “print+digital” solution Digital companion edition -- “must have” for boomer generation Cooperate fully with existing website Custom “micro-sites” can create new ad revenue source Magazine’s rich and branded layout available to web user Digital Delivery enables magazines to capture advertising dollars that are shifting to new media
12	Texterity’s Approach Web browser is all that is needed No additional application or plug-in (e.g., Flash, Adobe) No proprietary reader required Readers require application downloads, installations and updates Firewall problems, support problems, reduced readership Branded for the Publisher and/or Magazine Simple yet elegant interface can be branded Publisher controls colors, icons, logos Online and offline versions Online supports virtually any browser / computer Offline supports PC and Macintosh
13	Total Solution - Requirements E-mail management Messaging, delivery, bounce management, fulfillment updates Customer support, CAN SPAM compliance... Integration with publishers and fulfillment houses E.g., TCS, CDS, Sunbelt, Omeda, Hallmark, Kable Real-time and “triggered” solution modules Tracking and Reporting Full tracking of every user click Comprehensive and sophisticated reporting modules Download to CSV file or database Full Audit Agency (BPA, ABC) Compliance Logging, database reports, delivery accountability
14	3. Successful Models: Motivating Subscribers
15	Print Messaging Linked to Digital
16	Web Messaging Promoting Digital
17	Emails with a Message (Example 1)
18	Emails with a Message (Example 2)
19	Emails with a Message (Example 3)
20	4. Case Studies
21	Motivating Subscribers – Case Study #1 Business Publication – Qualified Subs Launched digital edition to existing print subscribers (email list from web site reg.) Over four month period after launch, sent digital edition to average of 50,000 print subs per month Email notifications used phased launch plan Results In 6 months, over 20% of list converted to digital edition exclusively Open and click-through rates stable User feedback extremely positive
22	Motivating Subscribers – Case Study #2 Business Publication – Paid Subs Converting existing digital solution users Experience – declining sub base for digital, customer dissatisfaction Over six month period after launch, sent digital edition to existing digital base Email notifications used phased launch plan Initial messaging explaining differences Website integrated sampling plan (month 3 start) Results: Increase of 135% in digital subscriber base Open, click-through, and re-use rates stable and increasing User feedback extremely positive – brought back digital users
23	Motivating Subscribers – Case Study #3 Consumer Publication – Paid Subs “Instant” integrated sampling program (digital sample sent to users who request one) Web site fully integrated with sampling, instant access to print subscribers, and digital subscription pricing plans Results: 8% of users viewing sample subscribe to magazine Growing month-over-month subscription volume (print and digital) Pick-up by search engines, leading to more web views/sampling
24	Motivating Subscribers – Examples Instant Delivery - Bon Appétit, Lucky http://www.bonappetit.com http://www.luckymag.com/ Digital Sampling - Esquire, SmartMoney http://www.esquire-digital.com/esquire http://www.smartmoney-digital.com/ Companion Delivery - Electronic House http://www.electronichouse.com
25	5. Summary
26	Leveraging Digital Editions Successful brands must constantly evolve All branded products and line extensions have real value Print magazines, trade shows, newsletters, web sites, lists, and research all serve/build audiences and produce ROI Digital Editions are becoming a permanent addition to the core brand strategy Responds to preference for Internet-based learning Addresses higher paper, postage and printing costs Enables global market outreach and brand building Leads to accountable engagement – publishers, advertisers, readers