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What: Meredith Corporation has entered into a binding agreement to acquire all outstanding shares of Time Inc. for US$18.50 per share in an all-cash transaction valued at us$2.8 billion. Meredith adds leading media brands to its  portfolio of National and Local Media Properties, creating a media powerhouse with US $4.8 billion in revenues, Including US$2.7 billion of advertising revenues. Meredith stock was up 8.2% at US $66 at noon in Wall Street. The transaction includes Time Inc’s ad-tech company  Viant.
Why it matters: Meredith is the main consolidator in the magazine industry. The main interest in the transaction lies in Time Inc’s People magazine and brand extensions. Meredith’s main magazines skew towards women audiences. It will be interesting to see whether Meredith will keep Time Inc’s news, business and sports titles (e.g. TimeFortune and Sports Illustrated).  Meredith will be a top-tier data player with a database of more than 250 million email addresses/device IDs, paired with leading advertising technology platforms and shopper marketing capabilities.

Meredith Corporation announced that it has entered into a binding agreement to acquire all outstanding shares of Time Inc. for US$18.50 per share in an all-cash transaction valued at us$2.8 billion. The transaction has been unanimously approved by the Boards of Directors of Meredith and Time Inc. and is expected to close during the first quarter of calendar 2018.

Meredith will be a top-tier data player with a database of more than 250 million email addresses/device IDs, paired with leading advertising technology platforms and shopper marketing capabilities.

The transaction will create a diversified media and marketing company with calendar 2016 combined revenues of US$4.8 billion – including US$2.7 billion of total advertising revenues with nearly US$700 million of digital advertising revenues – and adjusted EBITDA of US$800 million. Additionally, Meredith anticipates generating cost synergies of US$400 million to US$500 million in the first full two years of operation.

 Meredith will be well-positioned to benefit from fast-growing digital advertising platforms, including native, video, shopper marketing, programmatic and social.

“This is a transformative transaction for Meredith Corporation, and follows a fiscal 2017 in which we posted the highest revenues, profit and earnings per share in our 115-year history,” said Meredith President and Chief Operating Officer Tom Harty “When you combine our strong local television business – which has grown operating profit 15 percent annually over the last five years – with the trusted, premium multiplatform content creation of Meredith and Time Inc., it creates a powerful media company serving consumers and advertisers alike. We look forward to completing the transaction; welcoming the Time Inc. employees to Meredith; delivering on our pledge to achieve identified synergies; and growing shareholder value.”

Below are the main strategic rationales of the acquisition, according to a Meredith press release.

  • Creates unparalleled portfolio of national media brands with greater scale and efficiency – Combined, Meredith’s brands will have a readership of 135 million and paid circulation of nearly 60 million, with leading positions in celebrity, food, lifestyle, news and sports, parenting, and home content creation, as well as enhanced positions in the beauty, fashion and luxury advertising categories.
  • Continues the strong and growing contribution from local media – Meredith’s portfolio of 17 high-performing television stations in 12 markets is a consistent generator of strong cash flow. Meredith’s stations – which reach more than 11 percent of U.S. television households – are primarily Big 4 network affiliates located in fast-growing markets. In fiscal 2017, Meredith’s broadcasting business delivered the best year in its 60-year history, generating record revenues and profit – including more than $60 million of political ad revenues – and an EBITDA margin of 40 percent. Looking ahead, Meredith anticipates another strong political advertising year in fiscal 2019.
  • Accelerates Meredith’s digital position by adding significant scale – Meredith will be transformed into a Top 10 digital media company with 170 million unique monthly visitors in the U.S., over 10 billion annual video views, and nearly $700 million in digital advertising revenues. It will operate the No. 1 premium digital network for American consumers with unmatched reach to Millennials. Additionally, Meredith will be a top-tier data player with a database of more than 250 million email addresses/device IDs, paired with leading advertising technology platforms and shopper marketing capabilities.
  • Provides advertising and consumer revenue diversification and growth – Meredith will be well-positioned to benefit from fast-growing digital advertising platforms, including native, video, shopper marketing, programmatic and social. Also, Meredith expects to increase consumer revenue from diversified streams, including bundled circulation activities, brand licensing, ecommerce, events, video creation, content management, and marketing services.
  • Enhances financial strength and flexibility – Meredith expects the transaction will be accretive to free cash flow in the first full year of operations. Meredith has demonstrated a strong track record of achieving cost synergies with prior acquisitions, and is confident in its ability to optimize the cost structure of the combined business. The increased scale and free cash flow – coupled with cost synergy achievement – positions Meredith to aggressively pay down debt and achieve a leverage ratio of approximately 2x by 2020, and take advantage of future acquisition opportunities in the media space.
  • Increases Total Shareholder Return – Meredith remains committed to delivering top-third Total Shareholder Return. Meredith will continue to pay its current annual dividend of $2.08 per share, and expects ongoing annual dividend increases. Meredith has paid a dividend for 70 consecutive years and has increased it for 24 straight years.

“To summarize, we believe this acquisition represents a transformative and financially compelling growth opportunity for Meredith Corporation and will increase shareholder value over time,” Lacy said. “We are acquiring an impressive portfolio of leading brands and a digital business of scale with tremendous growth potential, complemented by our growing television broadcasting business that produces strong cash flow, fueled by growing political advertising and retransmission revenues. And the company will be led by Meredith’s executive management team with expertise in integrating acquisitions and operating multiplatform media businesses.”

 

BDT & Company and Moelis & Company are serving as financial advisors to Meredith, and Cooley LLP is serving as legal counsel.

 

 

 

What: Through a license agreement with Time Inc. and Televisa, FORTUNE en Español will be published monthly in Spanish.
Why it matters: FORTUNE en Español will include features from the U.S. edition of the magazine, as well as original content from its staff in Mexico. Business magazines are an interesting proposition in some Latin American countries. Forbes Latin America has a relatively large footprint as well as a panregional sales unit in Miami.


Time Inc.
and Editorial Televisa will launch FORTUNE en Español. The magazine will be distributed through distributor Intermex at 9,500 points of sales in Mexico and will cover a range of topics from the economy and politics, to technology, startups and innovation. Through a license agreement with Time Inc. and Televisa, FORTUNE en Español will be published monthly in Spanish.
German Sanchez Editorial Director of Fortune en espanol tells Portada that an event strategy is likely in 2018. He adds that the concrete topics and dates are still to be determined.

 

FORTUNE en Español will include features from the U.S. edition of the magazine, as well as original content from its staff in Mexico. The magazine’s debut cover story reports on the evolution of Airbnb and its plans for the Mexican market, written by FORTUNE en Español Editor-in-Chief Germán Sánchez Hernández.

“We are pleased to be partnering with Televisa to bring the FORTUNE brand to Mexico,” said Alan Murray, Time Inc. Chief Content Officer and FORTUNE President. “We are confident that Mexican readers will come to view FORTUNE as their most valued source of business news and information.”

Porfirio Sánchez Galindo, CEO of Editorial Televisa, said, “With the launch of FORTUNE en Español, Televisa starts a new era of content generation and timely news in Mexico in the business and finance sector. We are convinced that our joint initiative with Time Inc. is reaching an underserved audience in our country, that is hungry for great content.”

A digital version of FORTUNE en Español will also be available on Android, iOS and Zinio.

Time Inc. also publishes international licensed editions of FORTUNE in China, Korea, Greece, India and Turkey.

What: Advertising technology company Viant, part of Time Inc., has signed an agreement to acquire Adelphic, a mobile-first, cross-channel programmatic advertising platform company.
Why it matters: The combination will create the industry’s first people-based demand-side platform, powered by over 1 billion registered users globally.

Time Inc.’s Viant, a people-based advertising technology company, has signed an agreement to acquire Adelphic, a company that provides a mobile-first, cross-channel programmatic advertising platform.

Adelphic’s self-service media planning and execution tools, including its ability to reach consumers across all screens and formats, will bolster Viant’s people-based data and analytics offerings. The deal is expected to close during the first quarter of 2017.

More than 70 percent of digital advertising may be transacted programmatically in 2017 and 75 percent of mobile spending will be transacted programmatically.

As a pioneer demand-side platform (DSP), Adelphic’s global media execution capabilities, in combination with Time Inc.’s and Viant’s first-party registered user bases, will bring marketers and their agency partners the first people-based DSP capable of reaching more than 1 billion consumers worldwide.

Forecasts suggest that programmatic digital advertising is growing rapidly and that more than 70 percent of digital advertising may be transacted programmatically in 2017, according to eMarketer. eMarketer also reports that 75 percent of mobile spending will be transacted programmatically.

The move toward people-based solutions dominated by “walled gardens” left a gap across the open web, which generally focuses on proxies like cookies for user identification. The combination of Viant and Adelphic will deliver the first people-based DSP, powered by Time Inc.’s and Viant’s large, deterministic data set.

Marketers can now manage reach and frequency across devices and channels with precision and scale, as well as measure true advertising impact by leveraging Viant’s ability to tie in-store purchases to real customers.

Time Inc. President and CEO Rich Battista said, “We know that in addition to premium content, advertisers are looking for more efficient buying processes for digital audiences. With Adelphic’s proven self-service capabilities, Time Inc. and Viant will be able to deliver greater programmatic competencies and benefits to our partners.”

“Adelphic will bring superior media execution capabilities to Viant’s advertising cloud platform as one of the only DSPs built mobile-first,” said Viant Co-Founder and CEO Tim Vanderhook. “This addition will give marketers and their agencies the globally scaled people-based platform they have been consistently asking from us.”

“We have a strong portfolio of clients who know us for a robust and easy-to-use suite of self-service tools that enable access to billions of ad opportunities per day,” said Adelphic CEO Michael Collins. “Cross-device capability at scale, combined with Viant’s people-based precision and persistency, will create a winning solution for advertisers.”

What: Time Inc. is launching mobile-first, all-video platform INSTANT, which will feature content about the lives and projects of digital celebrities as well as content created by digital celebrities exclusively.

Why it matters: Time Inc.’s People, Entertainment Weekly and HelloGiggles will be INSTANT Launch Partners on Programming and Audience Strategy Initiatives.

laTime Inc. has announced the upcoming launch of INSTANT, a mobile-first, all-video platform featuring content about the lives and projects of digital celebrities as well as content created by digital celebrities exclusively for INSTANT.

INSTANT will deliver fresh news, features and exclusives about and by “the new famous,” the digital artists of YouTube, Snapchat, Instagram, YouNow, Vine and other platforms to come. And it will be presented exactly where and how its audience consumes content – on mobile devices and video. Content will be created by the INSTANT team and by digital artists with massive followings and intense engagement with their own audiences, as well as by fast-growing emerging talent.

The INSTANT user experience will be unlike any available on mobile web today – a fluid video stream allowing the audience to engage with content immediately, intuitively and without interruption. it will deliver a native app-like experience directly in the mobile browser, with no extra download required. This will be a 100% native and branded advertising-driven product, with the ad product a seamless part of the editorial offering.

“PEOPLE, Entertainment Weekly and HelloGiggles are the perfect brands to help launch INSTANT, a tremendously future-leaning platform dedicated to an exciting new generation of creators,” said Rich Battista, President of the Time Inc. Entertainment & Sports Group and Video.

“Just as PEOPLE and EW have led and transformed celebrity and pop culture coverage for years,” said Jess Cagle, Editorial Director of PEOPLE and Entertainment Weekly, “INSTANT will be the media authority on the new famous.”

“Digital artists are the most explosive and addictive phenomenon in celebrity and entertainment today,” said Will Lee, Digital Editorial Director for PEOPLE and Entertainment Weekly. “INSTANT will be the first and foremost platform for and by these creators, with a beautiful new consumption experience for our audience.”

INSTANT’s dedicated production team will be led by editorial director Kirstin Benson, who will report to Will Lee, and will oversee all editorial, native and social media content for the site. Benson joins the INSTANT team from WhoSay, where she led editorial operations for nearly two years.

Daily editions of INSTANT will feature “snackable,” shareable videos—called “Instants”—across many digital verticals, including entertainment, beauty, fashion, food and social media, covered through the unique perspective of digital artists, and frequently created and curated by the digital artists themselves. INSTANT and digital celebrity content will have a significant presence in the PEOPLE and EW ecosystems – websites, social channels, and in the magazines. In addition, the platform will work closely with HelloGiggles, the female millennial brand acquired by Time Inc. in October 2015, as a premier launch partner, conceiving and producing a variety of programming, audience strategy, and experiential initiatives together throughout launch and beyond, amplifying and emphasizing HelloGiggles’ positive messaging mission.

Consumers will get a first look at INSTANT and learn more about the new product at VidCon 2016, to be held June 23-25 in Anaheim, CA.

 

 

What: Nielsen Catalina Solutions (NCS) and Time Inc. announced a groundbreaking method of cross-platform advertising measurement that makes it possible to measure the quantifiable in-store sales impact of campaigns across print, digital and TV.
Why it matters: Study with Crystal Light Beverage Brand shows that combining print, digital and TV in a cross-platform campaign has a positive impact on sales.

logo_Crystal-LightNielsen Catalina Solutions (NCS), a company that helps CPG marketers optimize return on advertising spend with in-store purchase data, and Time Inc., one of the world’s leading media companies, have announced a groundbreaking method of cross-platform advertising measurement that makes it possible to measure the quantifiable in-store sales impact of campaigns across print, digital and TV.

To put this methodology to the test, NCS and Time Inc. collaborated with Crystal Light to measure a cross-platform campaign for the brand. The measurement revealed that print and digital advertising have synergies with TV, and that using multiple channels together has a positive, quantifiable impact on sales. By matching subscriber data from Time Inc. with data from GfK MRI, NCS was able to determine the value of the secondary audience, which has not been quantifiable until now. This secondary audience made a significant contribution to incremental in-store sales driven by the campaign.

The measurement revealed that print and digital advertising have synergies with TV, and that using multiple channels together has a positive, quantifiable impact on sales

“Until now, cross-platform measurement for campaigns including print just wasn’t possible because of the unknown time of exposure to the ads. Since we’ve developed Cognitive AdVantics – a new analytic tool that uses machine learning – we can look back in time from a purchase to determine which marketing variables actually influenced a sale,” said Leslie Wood, Chief Research Officer, NCS. “Being able to measure the effect that print, digital and TV have on a campaign will allow marketers to deliver even smarter campaigns in the future.”

“Time Inc. is committed to driving results for our clients, and continuously supports efforts to improve and evolve the methods that we have today. This new methodology allows us to quantify the synergy between media platforms,” said Caryn Klein, Vice President of Research & Insights, Time Inc. “In this case, we’ve learned that there is an increase in sales impact when you add print and digital to TV. When it comes to synergies between print, digital and TV, 1+1 is greater than 2.”

“Print continues to play an important role in our media strategy. Our ultimate goal for cross-platform is to understand where the synergies lie so we can optimize across business units, aligning print with other channels to effectively drive incremental sales,” said Kazim (Kaz) Gunay, Head of Consumer Insights and Strategy, beverages and snack nuts, The Kraft Heinz Company.

The service is available to CPG advertisers. Cognitive AdVantics, NCS’ new proprietary analytics tool, combines these data to connect media exposure to each CPG purchase decision, accounting for factors including time of exposure to print ads, and including secondary audience accumulated through pass-along readership.

What: YouTube network StyleHaul has team up with Magazine publisher Time Inc.
Why it matters: Two companies are joining forces and their own audiences to provide an attractive option for brands and advertisers. This is the latest in a string of announcement which has influencer networks and traditional media companies partnering up.

lBwysb9w_400x400YouTube network StyleHaul, best known for its fashion, beauty, and lifestyle content, has team up with Magazine publisher Time Inc. to create sponsored campaigns for some partners and help advertisers  benefit from the combined reach of their audiences across a variety of platforms.

Terms of the multiyear agreement were not disclosed. The partnershipbrings together Time Inc.’s content with the access and scale of StyleHaul’s Millennial influencer network, and covering a wide array of categories including red carpet, social storytelling and fashion & beauty.

The multi-platform initiative will mix Time Inc.’s publishing expertise with StyleHaul’s influential nature in  different branded projects with social media campaigns supporting a wide array of videos. The goal is to offer both reach and engagement.

A recent collaboration of the companies to support Walgreens’ “Whatever Makes You Feel Beautiful” campaign has proven out the concept. Walgreens is the exclusive sponsor of the Entertainment Weekly-inspired “Beyond Beautiful” editorial platform. The effort kicked off with EW’s February 12 issue and is set to continue across select Time Inc. brands, including People, People en Español and Essence.

“The scope and value of Time Inc.’s brands inspire our community and reflect the same passions,” said Stephanie Horbaczewski, CEO of StyleHaul, in a press release. “Together we are able to create dynamic content that resonates with audiences as well as offer our advertising partners a unique and authentic way to engage and extend innovative programs.”

What: Time Inc has acquired social network MySpace  parent company Viant for an undisclosed amount.
Why it matters:  The acquisition will accelerate Time Inc.’s strategy of activating its subscriber data across content brands and strengthen its value proposition in the industry by giving marketers targeting and measurement capabilities. Viant companies include ad network Specific Media, video ad platform Vindico and Xumowill, a smart TV system.

descargaTime Inc has acquired social network MySpace, or at least what is left of it. Actually, the publisher of magazines like Time, Fortune and People magazines has acquired MySpace parent company Viant.

Viant is a group of companies that includes advertising network Specific Media, which acquired MySpace for US$35m in 2011.

Even though the terms of the deal were not disclosed, the acquisition will most likely accelerate Time Inc.’s strategy of activating its subscriber data across content brands. Acquiring Viant will dramatically strengthen the Time Inc. value proposition in the industry by giving marketers sophisticated targeting and measurement capabilities.

the acquisition will most likely accelerate Time Inc.’s strategy of activating its subscriber data across content brands

MySpace was a pioneer of the first wave of social networks and the largest globally  in the mid-2000s. In 2005, it was acquired by Rupert Murdoch from News Corp for US$580m and by December 2008, it had  75.9 million monthly unique visitors. Six years later, the social network was sold to Specific Media, an ad network, for US$35 million. Eventually, Facebook appeared to conquer the market offering  a simpler experience, less cluttered by advertising.

“This acquisition is game changing for us,” Time Inc. CEO Joe Ripp said in a statement. “Marketers are selecting media partners that have either data-driven capabilities or premium content; we will be able to deliver both in a single platform.”

Marketers are selecting media partners that have either data-driven capabilities or premium content; we will be able to deliver both in a single platform.

Viant claims to have data from 1 billion registered users that will be combined with its own and Time’s subscriber information, providing it with a pool of data which it claims “rivals industry leaders Facebook and Google,”the Guardian reports.

“The combination of Time Inc. and Viant is all about the marriage of first party data and premium  Viant chief executive Tim Vanderhook.

 

Programmatic buying for Time print; Adidas explains how to really align IT and marketing; and SMBs turn to social media marketing while luxury brands are wary.

Time screen shotTime’s print goes programmatic

Time Inc. has jumped on the programmatic bandwagon, allowing advertisers to buy print audience segments in an automated marketplace. The offering comes with post-campaign measurement powered by AdMeasure, and Target, via media agency Haworth, is executing a multi-title print ad campaign.

According to Folio, when advertisers browse Time’s private ad exchange, they now see a “print” tab that leads to the selection of audience segments. Available segments include Women, Men, Lifestyle, Luxury, Business/Finance and Rapid Scale, with audience sizes ranging in size from 5 million to 89 million readers.

Andy Blau, senior vice president and group general manager of ad sales at Time Inc., told Folio that ad sales reps are trained to sell programmatic, too, and they don’t mind if a deal is closed in front of a monitor instead of face-to-face.

Adidas CIO aligns with digital marketing

At Adidas Group, an alliance between tech and marketing let the sports gear manufacturer create a social-media powerhouse for the 2014 World Cup. In an interview with IDG News service, Adidas CIO Jan Brecht outlined the social media strategy, which included a newsroom shared with Google. “We played on every relevant social media platform, certainly not just Facebook and Twitter, but anything we can do to connect, and we didn’t just send messages, but we listened,” he said.

According to Brecht, his IT team acknowledged that it didn’t have the creativity to drive marketing, so the decision was made to fully integrate IT and marketing as the “digital experience team.” IT is even involved in agency selection, as a way to make sure that creative can be successfully and quickly implemented.

photo: Caroline Gagne
photo: Caroline Gagne

Miami digital companies could teach tech about creating a hub

With Miami already a media center, The “Hispanic Hollywood” already knows how to create a healthy ecosystem, media and entertainment executives said at a Miami Finance Forum event. The Miami Herald reports that folks from Cisneros Group, Telemundo, SapientNitro and Imagina USA explained how their community had gathered a critical mass of large and small players to build a thriving local industry.

Now, the city wants to create another hub for technology startups. Maybe – but it will take time. According to the Herald, “Building a tech hub is a long-term play that could take 10 or 20 years, said Bradley Harrison, founder of New York venture capital firm Scout Ventures. He’s bullish though; Scout recently located its first office outside New York in Miami and has made two investments, including one to Rokk3r Labs, a Miami Beach-based co-building company, that was announced at the event.

Social SMBs

Hispanic entrepreneurs are turning to social media to promote their small businesses, according to ABC/Bakersfield. They may start out small, handling their social media presences on their own. But they could turn into a new business source for local and/or regional agencies after that first growth spurt. Meanwhile, Pew Research found that Instagram is more popular with Latino and African American consumers, while Pinterest is more used by whites. However, Facebook still rocks it – seven out of 10 internet users Facebook.

The Guardian: Luxury brands should rethink ROI calculations

There’s a clear trend away from print media for luxury brands, but many top-tier marketers don’t get how to measure ROI. At a panel discussion hosted by The Guardian, marketers were advised to look at return on interaction.

Chris Moody, creative director at brand consultant Wolff Olins, said, “You are building a relationship with people who may continue to use your product for the next 25 years. Those interactions that you have, particularly through social streams that you can get through digital, are super valuable. It would be a shame not to invest in that.”

Click through to the story for many interesting campaign examples, plus more insights.

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It’s all about the content, baby, as Hispanic characters begin to permeate TV and video. It’s a good thing, because Latino consumers are feeling spendy, especially when it comes to guacamole.

source: WilliamLevy.net
source: WilliamLevy.net

NASCAR Races to Thrill Latinos

NASCAR Productions’ Entertainment and Marketing division has partnered with telenovela star William Levy and Gladys Gonzalez to produce a still-untitled, non-scripted show about Hispanic race-car drivers trying to make it in NASCAR. Deadline Hollywood reports that they plan to pitch the show to networks next month.

 

Hispanic Consumers in the Mood to Spend

An annual consumer survey by Florida Atlantic University found that the majority in South Florida expects the economy to continue to improve over the next five years. Latinas were most optimistic, while lower-income Hispanics there had gloomier expectations of the economy than Hispanics nation-wide. Meanwhile, on the national level, the Haas Avocado Board is counting on Latinos (and everyone else) to eat mucho aguacate in the week leading up to the Super Bowl. They’re talking 120 million pounds of avocados!

Time to Tackle Twee Millennials

You know how Millennials are so crafty? When they’re not buzzing the neighbors with their home-made drones, they’re crocheting hats to sell on Etsy. To address what Time Inc. calls “the Maker Generation,” the publishing conglomerate combined content aggregated from various pubs with native ad content to create The Snug, according to Folio. Ikea is the exclusive launch partner for the first six months. Time says this is the first of several planned “social hubs.”

Don’t Count Your Hispanics before They Come

Yes, the U.S. Hispanic population still will see healthy growth, but marketers should expect 30 million less of them by 2050 than was expected. The latest U.S. Census Bureau population projections cut the expected growth in Latin immigrants from 91 percent to 57 percent, while more of the population growth will come from Hispanic births in-country. That new growth projection is still healthy as heck – but Pew Research Center points out that societal changes in the United States, such as inter-marriage among ethnicities, could change the nation’s ethnic makeup in ways still to be determined.

getsome

KollideTV Wants Latino Viewers to Get Some

The third season of web series from KollideTV includes the Latino comedy Get Some, as well as a mini-documentary series on race in America called Afraid of the Dark. The over-the-top network is serving an extra helping of diversity this season, in line with its motto of “where content meets culture.” In addition to GetSome, which focuses on a Nuyorican couple trying to keep their marriage spicy, the roster of shows includes a second season of the LGBT drama, In Between Men. The network aims to find and develop quality curated original content for African American, Hispanic, Asian and LGBT viewers across online, mobile, social and over-the-top platforms.

rodriguez gg

Golden Globe Win Is for All Hispanics

Gina Rodriguez won a Golden Globe for Best Actress/TV Musical or Comedy for her eponymous role in Jane the Virgin – and her acceptance speech fired up the Latino community as it emphasized how the culture is becoming more mainstream. She said, “This award is so much more than myself … It represents a culture that wants to see itself as heroes,” according to NBC News.

Magazine Media has been evolving to much more than print magazines over the last decade. To celebrate the brightest executives in Magazine Media, Folio Magazine  each year puts out a list of 100 leading professionals: 20 per category (Vision, Content, Marketing, Disruption, Revenue). In 2014, two executives belonged to the Hispanic Magazine Media Sector: Luis Solis, Associate Director of Integrated Marketing at Time Inc (within the Marketing category and interviewed below) and Enedina Vega, VP& Publisher, Meredith Hispanic Ventures  (in the Revenue category, watch out for next Tuesday’s interview with Enedina Vega).

The FOLIO: 100 brings together individuals in publishing from across all markets and mediums. With representatives from mass consumer titles on the cutting edge of digital, to those at niche B2B magazines thriving on print, it’s clear there’s no one way to define success. They each have their challenges though. Below Portada’s conversation with Time Inc’s Luis Solis.

Portada: Your Award was in the “Marketing Category”, what needs to be done to improve the marketing of the Hispanic magazine media category? What do you think has worked very well in your case?
Luis Solis, Associate Director of Integrated Marketing at Time Inc:  “I would love to see more programs lead by creativity, structure, innovation, and a clear vision of having consumers’ first in the marketing equation. This formula has worked very well for me, and in the past ten years I’ve been honored with ten awards, including the prestigious MIN Marketer of the Year recognition.I am an optimist by nature, so I always seek for the most optimal outcome. As a result, I came up with a formula that always supported this viewpoint and gave great ROI for my clients. It’s “C.I.C.S.I.”, and I pronounce it “Si, Si” like a double affirmation in Spanish:
· Consumers (always first): A purpose to provide a benefit to consumers; while touching, moving and inspiring them to take action.·
Insight: Know your audience and what’s meaningful to them
· Creativity: A great idea that touches the target audience‘s heart and core identity
· Structure: An idea is as good as a house of cards; add a solid structure, and you have a Japanese skyscraper with earthquake proof foundation.
· Innovation: Consumers want to be impressed, surprise them and win their support. Build a team that is willing to take risks, and ready to give their all to provide consumers a new best possible experience.
I just taught a class on the evolution of the Magazine industry at the NYU Stern of the School of Business, and I gave the students the same advice. If you give consumers an opportunity to experience/be part of something they find amazing and rewarding, they will in return give you their engagement, support, advocacy and product purchase – all KPIs in the books of advertisers.”

You work in a company that is predominantly in the general market. What would you advise executives in a similar situation to do in order to “convince” their management of the “Hispanic market opportunity”?
L.S.:
“Be a proven performer. Regardless of the company you work for, great results tied to new revenue is always welcome by management. Plan your work and work your plan. If you start your journey knowing this, then it is a matter of putting together a plan, stamina, and the vision to make it happen. Build your community of supporters. Salesmanship, Partnership, Selflessness, Passion and Professionalism are key to building your community. Make sure your management is part of this team. If you deliver, the trust and support will be parallel to the efforts you want to implement. Always have a plan B, C and D – Ideas are only as good as their executions, and you don’t know what can happen in the middle of a program. There is always a “mercury retrograde” around the corner. Having said that, it is about preparing for the worst, so you don’t fail like the rest. Have the solutions kit always at hand reach. If you fail, execute a complete analysis and identify all possible learnings that will set you closer to success next time you try. At the end we are all measured by performance and results.”

If you were to choose your Magazine Media star who would that person be?
L.S.: “No comment.”

Hispanic Magazine

Let’s not forget our roots. Mgazines allow advertisers to connect with consumers via their five senses; and that’s powerful for any marketer. You can see an ad, eat a food sample, smell a scent strip, touch and test make up samples, and hear ads with sound chips.

As we move into 2015 How do you see the Hispanic magazine media sector evolving what are the main trends you see?
L.S.:
“From an industry perspective, expect more company. Our industry is experiencing a great momentum and that has resulted in the addition of a number of new magazines, live-events, and sites in the market.From an audience perspective, have your millennial strategy ready. Most if not all advertisers are trying to win over this highly-desired audience. From a marketing solutions perspective, leading brands have content marketing, social, mobile and video now embedded in their RFPs. Brands are trying to communicate with their target audiences at all times leveraging all possible channels. Thanks to technology we have the capability to touch, move and inspire audiences 24/7. Lastly, magazines have evolved digitally to meet new consumer behaviors. However, let’s not forget our roots. Printed magazines allow advertisers to connect with consumers via their five senses; and that’s powerful for any marketer. You can see an ad, eat a food sample, smell a scent strip, touch and test make up samples, and hear ads with sound chips. That being said, it is our duty as market leaders to show the value of our products, audiences and lead the way with a “Si, Si” strategy.”

Check out next Tuesday’s January 20, 2015 Interview with Meredith Hispanic Venture’s Enedina Vega!

What: Media company Time Inc.  has struck a multi-year agreement with content discovery platform  Outbrain to adopt its’ proprietary technology stack to deliver content recommendations to its audiences.
Why it matters: The content-recommendation space has grown rapidily as it pushes traffic around the web. By using content recommendations services major publishers can derive significant revenues as they offer their digital properties to drive traffic to other sites who pay for the inbound traffic. It is unusual for content recommendation services to be exclusive and for a revenue figures to be announced publicly as is the case in this Time Inc. Outbrain deal.

TimeIncMagazine publisher Time Inc. and Outbrain Inc., a global content discovery platform, have announced an exclusive multi-year agreement that will see Time Inc. enhance its digital strategy by deploying the full suite of Outbrain’s solutions for seamlessly surfacing content that is relevant to audiences across its global portfolio. The partnership is worth more than US $100 million for Time Inc. over the course of the agreement.

It is unusual for content recommendation deals to be exclusive.

To date, Time Inc. had been working with a combination of companies content-recommendation widgets which help push traffic around the web.As part of this agreement, Outbrain, also a “content discovery”  company,  will now power content recommendations on renowned brands such as Time, People, Sports Illustrated, InStyle, Real Simple, Travel + Leisure, Food & Wine. Additionally, it will provide Time Inc. with tools for their editorial team, empowering editors to better program and optimize content to meet their KPIs.

Time Inc. is also going to tap Outbrain’s existing premium publisher network to drive incremental engaged audiences to its digital properties.

Time Inc’s works with content brands such as People, Time, Sports Illustrated, InStyle and Real Simple to deliver valued content within brand-safe environments to a highly engaged audience. The company has experienced significant digital growth over the past year and currently boasts more than six billion page views per quarter and 131 million unique users per month, globally. Time Inc. announced revenues of US$821 million in the third quarter, but its ad sales and circulation fell during that period.

Time Inc. announced revenues of US$821 million in the third quarter, but its ad sales and circulation fell during that period.

Outbrain place links below articles published across a variety of websites, including CNN.com, Slate and ESPN. Media companies and marketers pay Outbrain to place those links on publishers’ sites so as to drive traffic to their content. In exchange,  Outbrain shares this revenue with the publishers where the links appear. The platform has offices in more than 11 global territories and partners with publishers and marketers in over 55 countries, including the U.S., UK, France, Japan, India and Brazil. Worldwide, it now serves over 190 billion recommendations per month to consumers in over 150 countries—with more than 561 million unique users in September 2014 according to comScore.

Time Inc. Chairman and CEO, Joe Ripp said: “This provides marketers with an ideal environment to deliver their messaging. Outbrain’s focus on audience experience and surfacing optimized content recommendations was a key to launching this partnership. It maximizes the monetization of our audience to other content publishers. And, it provides key insights and analytics about our core digital users.”

“We are delighted to announce our agreement with Time Inc. and believe that smart and innovative companies like it are the lifeblood of the new look digital media industry. Outbrain began as a straightforward recommendation product, but we have innovated, adapted and evolved into a platform that serves multiple publisher constituencies—the business, editorial and product teams—affording our partners the flexibility to embrace digital opportunities and continue to deliver what audiences crave,” said Yaron Galai, Co-Founder and CEO of Outbrain .

The agreement is said to be effect on November 15.

Read  more on how Content Marketing services providers and content recommendation services are expanding into the U.S. Hispanic and Latin American markets.

 

What: Source Interlink is closing its Distribution Company after Time Inc, one of its main clients switched its business to a News Corp. owned whole sale distributor called TNG. Additionally Source Interlink is rebranding its enthusiast magazine division to TEN Media.
Why it matters: The closure of Source Interlink Distribution reflects the tremendous financial pressure that both magazine publishers and their distributors have been facing as the Internet has decimated newsstand sales and as retailers hand over prime shelf space to other products like candy and gum. There are now only two major U.S. magazine wholesalers: TNG and Hudson News.

Source Interlink Distribution, the second largest U.S. magazine wholesaler and a company that for decades has distributed many major magazines including many Hispanic ones, is closing. The company, based in Bonita Springs, FL, employs around 6,000 workers.

Hispanic MagazineThe decision to close was mostly motivated by Time Inc’s decision  10 days ago to stop using Source Interlink as the distributor for its magazines because of unpaid fees. “One of our largest suppliers has recently decided to cease supply and move in a different direction,” Michael L. Sullivan, the company’s chief executive, wrote in a letter to his other clients that was obtained and published on Thursday by Bob Sacks, an industry consultant who produces his own newsletter. “As such, it’s with a heavy heart that I am writing to advise you that Source Interlink Distribution Company will be discontinuing all operations in the near future.” In a filing to the Securities and Exchange Commission last Tuesday, Time Inc. said it would not be able to collect $19 million of expected revenue from sales made to the discontinued wholesaler during the second quarter of 2014. It also said it would have to write off $7 million of what it called “receivables” that it had booked in previous quarters.

In the last five years, the retail magazine business has shrunk 40 percent, to less than US $3 billion.

TNG, owned by the News Group, has agreed to take over most of Source Interlink’s distribution duties for Time Inc.  Time Inc. said it would lose US $1 million in transition costs. Jill Davison, a Time Inc. spokeswoman, said that the regional markets that Source Interlink served — Southern California, Chicago and the Mid-Atlantic States — might face shortages of popular Time Inc. magazines like People and Sports Illustrated for up to 12 weeks. In the S.E.C. filing, Time Inc. estimated that this loss of sales could be around US $4 million. According to the New York Times, The battle between Time Inc. and Source Interlink, based in Bonita Springs, Fla., reflects the tremendous financial pressure that both magazine publishers and their distributors have been facing as the Internet has decimated newsstand sales and as retailers hand over prime shelf space to other products like candy and gum. In the last five years, the retail magazine business has shrunk 40 percent, to less than US $3 billion. And while there were hundreds of magazine wholesalers in the 1990s, the industry has consolidated into just a few major players in recent years: Source Interlink, TNG and Hudson News.

Rebranding of Enthusiast Magazine Division

Source Interlink also announced that it is rebranding its enthusiast magazine publishing division to TEN:The Enthusiast Network. The division caters to male interests such as Automotive, High-Tech, and Action Sports with over sixty individual titles including well known magazines such as Motor Trend, Automobile Magazine, Hot Rod, Stereophile and Surfing. The umbrella brand used until now was GrindMedia. In 2007 Primedia sold its Enthusiast Media division to Source Interlink in a deal that netted Primedia $1.15 billion in cash in exchange for a group of more than 70 magazines, including Motor Trend and Soap Opera Digest and 90 consumer web sites. The deal left Primedia to focus on a series of free print and online consumer guides published by its Consumer Source unit.e Officer. “We are the world’s premier network of enthusiast brands — we create and deliver content every day that informs, entertains, inspires and connects with enthusiasts. We are dedicated to enabling enthusiasts to pursue the passions that define their lifestyle.”

“The Company’s future focus will center on its iconic core brands and their connection with the consumer across all forms of media,” said Dickey. “We are now putting in place the foundation to operate as a truly independent content creation and media services company, and the rebranding signals both the scale of the changes and scope of our ambitions.” Dickey was brought on board as CEO of Source Interlink in late February 2014, and has since been working with the executive team on the company’s next chapter.

“Our new corporate branding fully captures the essence of our businesses as authentic, credible enthusiast media brands,” said Norb Garrett, Senior Vice President/Group Publisher. “We will be transitioning over the next 90 days from our GrindMedia umbrella brand into the TEN: Action/Outdoor brand within TEN: The Enthusiast Network. At the root of it, our business is built upon the individual brand strength of our vertical properties such as Surfer, TransWorld Skateboarding, Powder, TransWorld Motocross, GrindTV.com and more, and they remain our core focus and we continue to expand our media capabilities and grow our audiences.”

What: Time Inc.’s People en Español is launching the new english-language digital and print offering “Chica”. The new content will have an online presence and be a 12-page booklet inserted into the June issue of People en Español. Maybelline® New York and Garnier® will be the exclusive launching sponsors.
Why it matters: As marketers are asking for more quality content targeting acculturated Hispanic women, media properties are taking notice and introducing digital, print and broadcast offerings for the bilingual and English-dominant Latina.

peopleTime Inc.’s People en Español has announced the launch of Chica, a new english-language content offering targeting bi-cultural Latina woman. Chica will debut in the June issue of People en Español, and on newsstands on May 2. Maybelline® New York and Garnier® will be the exclusive launch sponsors of this 12-page booklet focused on fashion and beauty trends.

Millennials comprise nearly a third of People en Español’s audience.

The launching of Chica, means People en Español will continue to deepening Time Inc.’s connection with the acculturated Latinas growing audience , which began late last year with the success of All You’s custom magazine, Celebraciones. Celebraciones is scheduled to repeat in 2014.

“We are delighted to extend the People en Español brand with Chica, which allows us to serve our audience of 7.3 million with additional style and beauty content both in-book and online. Millennials comprise nearly a third of People en Español’s audience, and Chica’s editorial mix of celebrity and inspirational stories will offer more of what they love,” says People en Español Editor Armando Correa.

Chica provides a platform to address today’s emerging bicultural reality. “We are providing solutions for powerful brands like Maybelline® New York and Garnier®, our launch partners, and expanding our reach,” said People en Español Publisher Monique Manso. Prior to its launching, the audience can experience Chica online at ChicaChic.com.

What: Time inc. will spin off parent company Time Warner and raise US $1.4 billion of debt that will be used to finance the acquisition of IPC Media.
Why it matters: The debt will be raised through an offering of unsecured senior notes and also through a secured loan facility.

TIMEWARNERTime Warner Inc. it’s spinning off parent company Time Warner with US $1.4 billion in debt. The financing will be used to buy Time Inc.’s U.K. operation, IPC Media.

The company is planning to raise the debt through an offering of unsecured senior notes and also through a secured loan facility, according to a statement. However, Time Warner will not be a guarantor or provide credit support for the notes or the loan, the cable company said.

The remaining of the debt after buying IPC will be used to pay a cash dividend back to Time Warner.

Howard Averill ,Time Warner’s chief financial officer, first revealed an US $1.3 billion debt load attached to the Time Inc. spin-off in early February during TW’s fourth quarter earnings call.

Time Warner bought IPC Media, which publishes editions of magazines such as Woman’s Weekly, NME and InStyle, in 2001 for about US $1.7 billion.

According to sources within Time Inc. ,the spinoff may happen by the end of the second quarter.

Sources: Foliomag,WWD

 

 

 

What: Time Inc’s All You is publishing a  12-page custom magazine, called Celebraciones, which will focus on the holidays and will be bound into the December issue of AllYou Nestlé USA is the sponsor of the program — integrated across print, digital, mobile and social platforms.
Why it matters: An increasing number of major publishers are reaching out to Hispanic women in English by inserting publications in part of its general market run and adding select retail disribution. Hearst (Cosmopolitan for Latinas and in 2014 Woman’s Day Latinas), Conde Nast (Glam Belleza), and, now Time Inc’s All You reflect this trend.

Time Inc’s All You is publishing a  12-page custom magazine, named Celebraciones, which will focus on the holidays and will be bound into the December issue of AllYou, hitting newsstands on November 15th. Nestlé USA is the sponsor of the program — integrated across print, digital, mobile and social platforms — to support its El Mejor Nido (“The Best Nest”) communications platform: (http://www.elmejornido.com). The company will run coupons for La Lechera®, Stouffer’s®, Juicy Juice® and other brands in the custom magazine.  A companion website www.allyou.com/celebraciones will be live on Friday, November 15th, the day the magazine hits newsstands. The content will be on the site permanently and will be heavily promoted throughout the holidays.

Celebraciones
Celebraciones Cover

Celebraciones will have a targeted circulation of 380,000 — a mix of Hispanic subscribers and newsstand buyers in key Hispanic markets. “We targeted consumers based on self-selected Hispanic consumers and other relevant variables such as geographic area,” an All You spokesperson tells Portada.  “The magazine will be sold in newsstand copies at Walmart stores in Arizona, Nevada and California and sent to select subscribers,” she adds. The fact that All You is sold primarily at Walmart was a strong part of Nestle’s decision to sponsor Celebraciones, according to Vanessa Rivera, manager for multicultural marketing communications at Nestle USA. Another major publisher, Hearst, also announced recently that it  plans to publish four issues of Woman’s Day for Latinas starting in 2014, distributing 445,000 copies to certain Woman’s Day subscribers and at select Walmart newsstands.

The magazine will be sold in newsstand copies at Walmart stores in Arizona, Nevada and California and sent to select subscribers.

Time Inc’s All You’s regular magazine has a monthly circulation 1.5 million and the allyou.com website has 1.7 million monthly unique visitors.

December All You Cover
December All You Cover

We drew upon the diversity of our editorial team to create the content. Latinas are well represented on our staff.  In addition, because All You has always been a pioneer in user-generated content, we reached out to Latina bloggers and our Reality Checker communities to help us ensure that we incorporated all of the critical cultural cues, All You Deputy Editor George Kimmerling , tells Portada. “In addition to tapping into its loyal blogger following, All You consulted Latina women who are part of its 50,000-strong Reality Checkers network, highly engaged readers with whom the brand communicates regularly.”

 

What: Time Inc. will soon be inking a deal to purchase American Express’ luxury publications.
Why is it important: Banking regulations discourage licensed banks from participating in non-financial businesses, which is the reason behind AmEx’s magazines forthcoming sale.

According to sources such as AdWeek and The Wall Street Journal, and although neither side has yet publicly acknowledged the impending sale, Time Inc. may be close to a deal to buy American Express’ luxury publishing division.

Negotiations reportedly began to take place after banking regulations –that limit American Express ability to get involved in non-banking activities– required that, being AmEx a bank holding company, exited noncore businesses, even if the publishing division was a small business given the company’s size. Rumors have escalated after the arrival, last week, of Time Inc.’s new CEO, Joe Ripp.

The five high-end magazines Time Inc. would be acquiring are Food & Wine, Travel + Leisure, Departures, Executive Travel and Black Ink. It is still not clear how much would Time pay for the titles. Adding AmEx chic magazines to Time’s current 130 titles (Time, Fortune, Life, Golf Magazine, InStyle, People, Sports Illustrated, etc.) would further allow a more targeted communication towards upscale consumers.

It is expected, however, that Time Warner Inc., Time Inc.’s parent company, relaunches the publishing unit as a stand-alone company in the near future.

WSJ’s William Launder highlights the fact that Time and American Express have a long-standing relationship, because due to an arrangement dating to the early 1990s, Time handles functions like subscription fulfillment and other back-office services on behalf of American Express.

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Kika Rocha has left her post as Beauty and Fashion Director for People en Español. Her last day was May 3.

kikaRocha

In a note to staff members, People en Español Editor Armando Correa wrote: “After 10 fruitful years as our Fashion and Beauty Director, María “Kika” Rocha has decided to leave People en Español to continue her career on television, develop her blog, and promote her forthcoming line of designer bags.” In the same note, Correa introduced Úrsula Carranza, a former editor of Siempre Mujer, as the magazine’s new Fashion and Beauty Director.

During her 10-year tenure at People en Español, Rocha evolved to become a brand of her own and a sort of Hispanic ambassador to all things beauty & fashion.

In addition to her job at the magazine, she has been a fashion consultant for shows on Univision, Telemundo and CNN en Español, and has hosted some of the most important fashion and celebrity events in the Hispanic world, including the Latin Grammys, Premios lo Nuestro and the Latin Billboard Awards.

Rocha also writes a daily blog, DeTacones.com. She is a very active member of the Twitter community, where she counts almost 75,000 followers and where she shares her beauty and fashion tips using the hashtag #tipsdekika.