Nicola Rowe Director of Circulation & Member Services Bladen in de Balie 10 September 2012

1. Magazine Retail Sales: A UK Perspective Nicola RoweDirector of Circulation & Member Services Bladen in de Balie 10 September 2012

2. Market overview

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

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

5. Retailer overview Number of UK wholesalers Number of major UK distributors 2 Number of retailers in the UK selling magazines 54,000 2012 % MARKET SHARE (2004) 5 • Major supermarkets 44% UP (30%) • WHSmith 14% DOWN (18%) • Other multiple retailers 17% DOWN (19%) • Independents 25% DOWN (33%)

6. Consumer magazines – volume & value trend Sales value: -8%Sales volume: -10%

7. 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% Magazine sectors doing well…and not so well… • Women’s Interest – Lifestyle/Fashion - 5% • Women’s Interest - Weeklies - 11% • Motoring & Motorcycling -11% Source: ABC Jan-Jun 2012

8. The role of the PPA

9. The role of the PPA • PPROMOTEPPROTECTAADVISE

10. PPROMOTEPPROTECT AADVISE

11. PPA’s Retail Marketing Group

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

14. RMG activities & initiatives

15. 4 key words… ENGAGEMEMT COLLABORATION COMMUNICATION INFORMATION

16. ‘PPA Retail’ website

17. Feedback from multiple retailers Desire for industry view of current market performance Lack of consistent top level industry measures Help with internal ‘education’ about magazine industry Shopper insight regarding magazines Lack of industry-wide promotional initiatives

18. Working with multiple retailers • To engagedelegates in the current RMG projects • To encourage collaborationon industry initiatives • To give retail delegates a range of new robust argumentsto take back to their businesses • To ensure that retail delegates feel confidentabout the future of the magazine category • To recognise & reward excellence in magazine retailing (through the awards) RETAIL FORUM & MAGSELL AWARDS

19. Working with multiple retailers • Retail buyer induction programme • Research • Cross-category promotions • Online copy sales

20. 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. Working with independent retailers • ‘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

22. ‘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. 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. Some key lessons… Collaboration & communication is key Information is power (about the category, the market, consumer insight) Have a focal point, such as a dedicated website or annual event We need to realise who the competition is Play the long game – it’s about protecting space We can no longer rely on magazines selling themselves!

25. Publisher-driven initiatives

26. Rival partwork publishers worked together to share space at supermarkets • 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

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

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

32. And finally….bringing magazines to life…

33. Thank you! nicola.rowe@ppa.co.uk