Global head of marketing at Economist Digital, Michael Brunt, discusses the growing movement towards digital reading, increasing investment in the Americas and the now fundamental role of digital in The Economist's marketing strategies as he prepares to take up a judging role at the 2013 DADI Awards for digital excellence.
We often hear of the troubles facing the newspaper and magazine industries as the growth of digital brings its own problems and we're seeing major titles turn towards paywalls - how is the Economist faring in the climate?
The Economist, like virtually all publications, generates revenues from readers and from companies who wish to reach readers, and the growth of digital has certainly made balancing the two streams more complex. While we're still growing our overall circulation, we're certainly seeing a steady migration towards digital reading, and we know this will accelerate. We're in a strong position because our premium pricing means circulation makes a positive contribution - so we're investing heavily in growing our readers, to grow profits, which, together with our thought leadership services and digital ad sales allows us to more than make up decline in print advertising. We still offer free content on our apps and on our site, as this remains a great way to drive sampling, engagement and ultimately subscription sales.
Is there one particular online platform that you feel the Economist uses most effectively when it comes to consumer engagement?
Our app has proven to be just as good a 'lean back' reading experience as our print edition. For most of our readers, devouring The Economist is a weekly ritual - they settle into a chair somewhere quiet and it is a leisure read. A tablet is just as good as a print publication for fulfilling this ritual, if not better. But we've purposefully designed our apps with the 'lean back' experience in mind, choosing deliberately to leave out some of the interactivity that tablet technology allows. In fact - Apple chose to feature someone leaning back on a recliner with their iPad, reading The Economist, in one of their major launch campaigns.
Data has become a real issue for brands - how do you see the Big Data problem being solved?
Digital reading means we have far greater opportunities to gather data on our readers - both our anonymous readers and those who have chosen to engage and create a relationship with us. We use this data very carefully to drive our strategies and have invested in the infrastructure to house it. We can now tailor our messages based on precisely which stage in the customer journey a reader has reached. This Big Data approach has dramatically improved the efficiency of our marketing spend. Big Data has got to be the way forward.
How can we expect to see the Economist develop its digital marketing activity in the coming months/year?
As you'd expect, we spend substantially more on digital marketing than on offline marketing these days, and that trend will definitely continue. Direct mail, outdoor, press and other non-digital channels are still highly effective for us, but they are now more likely to be used as components of an integrated activity combining earned, paid and owned media. We are increasing our investment in brand and circulation marketing substantially this year - especially in the Americas - and digital marketing will be an ever bigger proportion of our spend.
Does your digital strategy differ at all when it comes to mobile or tablet?
Yes, definitely. I mentioned before how our tablet apps are designed to replicate the 'lean back' experience of reading the print edition of The Economist. That's not necessarily the right strategy for all smart phones. So we've recently launched a mobile-optimised version of Economist.com, which you could say is more of a 'lean forward' experience than a 'lean back', and provides more of a 'snacking' experience best suited for smaller screens.
What do you hope to see from the DADI entries this year?
I'm especially keen to see campaigns that successfully incorporate content into a campaign, so that there are owned, earned and paid media elements working together such that the whole is greater than the sum of the parts. Plus some smart campaigns that generate a buzz not necessarily related to the level of investment.