Wednesday, September 26, 2007

When is a link not a link?

A big question these days is about press release-pick up.

There are lots of spam sites that pick up parts of press releases in the hopes that web surfers (do people still use that term) who land on the page may decide to click onto one of the ads on the side of the page. If even is a small percentage of people landing on the page click on an ad, the site pays for itself.

But from a client and agency perspective, these sites are meaningless. I've discussed this before, but those sites draw random people, not potential customers for our B2B clients.

On the other hand, there are media sites that regularly pick up press releases. Media sites that range from smaller TV stations around the country to publications like Forbes. Recently, we distributed two press releases over PR Newswire for the same client; the report we got back included pickup on the Forbes site. The client was thrilled, as we've seen with other clients.

But we decided to investigate further. Going to the site, we entered the client's name in the search box....

The result: nothing.

No link to the client's press release, even though we had a URL that showed the release. In other words, the pick-up existed outside's search engine, and could be located only by clicking on the link provided by PR Newswire.

We are now advising clients not to get too impressed by the pickup of the release. Not to pick on PR Newswire or, I'd bet the same is true for BusinessWire, too.

One measure of a successful press release is the number of stories generated by them. But these days of smaller editorial staffs, just getting a press release picked up on relevant, meaningful, non-spam sites can be a measure of success.

Unfortunately, that doesn't mean the press release has real impact.

Bottom-line: The industry needs a better way to measure the impact of a press release.

Tuesday, September 4, 2007

More about Magazines

The New York Times ran an interesting interview with George Green, the chief executive of Hearst Magazines International, which sells foreign versions of Cosmopolitan, Esquire and other Hearst publications. In the interview, Green says, "The economics are hugely different (inside the U.S. and outside). The United States is the only place where the postal service gives incentives for mailing magazines. So here, about 90 percent of magazines are sold by subscription, only 10 percent on newsstands. Outside the United States, that’s reversed. And no one overseas expects a huge discount from the cover price when they do subscribe. The business is driven entirely by ad revenue here, but elsewhere it is driven by circulation as well as ads."

In other countries, magazines are sold at newsstands, which affects the way Hearst designs its magazines and how it sells advertising in them.

According to Green, they use much heavier paper. "Since we don’t mail many magazines, we don’t have to worry about postal weight, and the heavier paper gives a higher-quality look on the newsstand. You hardly ever see newsstands in the United States anymore, but overseas you see them everywhere. The concept of a rate base — promising advertisers a certain level of readers — doesn’t exist in other countries. So you don’t have to spend a lot of money on promoting your new magazine to lots of readers. It can take more than three years for a new magazine to break even in the United States. Overseas, you can make money with your second issue"

One interesting concept of reselling/republishing U.S. magazines, content, and format to readers in other countries. Hearst doesn't just translate U.S. content into the local language. "We make the American content available, but it’s up to our partners whether to use it or not. At first they use lots of it, but over time it goes down to about 20 percent. After all, the women of Australia are not like the women of Korea, who are not like the women of France," Green said.

From a global messaging perspective, what's also interesting is that Hearst does not offer package deals, offering space in five countries for the price of four.

"We rarely bundle," Green said. "Media buyers tend to operate locally, with localized budgets. It’s rare that someone in Korea is buying ad space in Latvia."

That's important because often U.S. advertising and PR clients think it should take one budget to cover Europe. There are some pan-European publications -- the International Herald Tribune (which caters to Americans), The Economist, The Financial Times and The Wall St. Journal Europe are the main English-language exceptions. But generally, "covering" Europe requires translating messages into the local language and culture, and having people on the ground in each country. That often requires separate budgets for each country and plans customized for each country.

The full interview is available here.