Professional Documents
Culture Documents
SITUATION ANALYSIS
Client Analysis
Product
National Geographic Magazine app for the Apple iPad. It is the traditional National Geographic magazine with digital extras which includes special interactive content such as videos, infographics and more. Channel, on the National Geographic website, and in the App Store as a Recommended App. Instagram, Facebook, YouTube, and Amazon.com have also been used for promotion. Very little crosspromotion for the app has been done for the most part. map making. Subscription revenue has ______ significantly, from ______ in 1999 to ______ in 2009. Fox is expected to net NGS channel reaches about 70 million homes worldwide. ______ in 2012. Nat Geo
Price
The app is free, and content is available through a $19.99 annual magazine subscription or a $1.99 monthly subscription. Single issues cost $4.99, and back issues are available starting with February 2011 issue.
Place
The app can be purchased on the App Store and Amazon.com.
Location
Available worldwide to anyone with Internet access and an iPad.
Financial Health
National Geographic is one of the largest nonprofit scientific and educational institutions in the world. It is a 501(c)(3), taxexempt organization, and assets include Nat Geo magazine, cable channel, website, book publishing, and
Budget
The official budget is ______ We look to leverage owned assets social media, and other free tactics. Big ideas which generate subscribers can be pitched with demonstrated payout.
Promotion
The app has been promoted in National Geographic Magazine, the National Geographic
SITUATIONANALYSIS
Industry Analysis
Reaching Readers on a Digital Platform
According to State of the Media 2012, Time Inc. reports while print remains the primary source to access magazine content, 15% of readers access their content only in digital form, while 30% read both online and in print. Print-only readers still make up the majority of readership. As illustrated in Figure 1, other content providers seem to be seeing similar trends. How consumers are accessing content translates to where revenue is coming from. PricewaterhouseCoopers estimates that in North America consumer magazines brought in just $4 million from digitalcirculation in 2011, and $9.2 billion in print circulation revenue.
Figure 1
Figure 2
Monetization
Despite audience growth, monetization of digital content remains a challenge (see Figure 4). Magazine publishers are using tablet subscriptions, print-tablet subscription bundles and other paid content approaches
Apps
The number of magazine iPad apps has risen sharply reaching 1,159 in early 2012, as illustrated in Figure 2. Magazines have been faster than newspapers or business publications to develop apps. In August 2011, Time Inc. announced that it would put out tablet versions of all 21 of its magazines by year end, which it successfully accomplished.
SITUATIONANALYSIS
Apples Impact
Apple, creator of the iPad the first mobile tablet computer to receive commercial success, continues to shape the market for tablet applications. Apples decision to allow publishers to sell magazine subscriptions in iPads, rather than just single copies, has fueled many magazines to develop apps. Virtual storefronts, such as Apples iOS Newsstand, have helped magazine publishers grow their digital subscription bases. As illustrated in Figure 3, 47% of magazine publishers feel that Newsstand helps their businesses, while 44% are indifferent about the value of Newsstand.
Figure 3
Figure 4
SITUATIONANALYSIS
According to an eMarketer report, currently almost 80% of all tablet users have purchased apps for their tablets. This currently accounts for a quarter of all app downloads. Forty-three percent of all app downloaders spent over $20 on apps in the last year, and 23% spent more than $50. pps between $0.99 and $2.99 will make up 96% of paid apps in 2016. When talking to tablet owners, over half expressed interest in purchasing established media content such as TV shows, newspapers and magazines. About half of the respondents who use newspaper or magazine apps on their tablets said that they would prefer to pay for apps with less or no advertising. Seventy-nine percent of people who downloaded apps paid for content. According to ComScore, tablets accounted for just 1.8% of US newspaper site traffic in May 2011. Ninety-two percent of magazine subscribers still get their publications in print and prefer print. As tablets become more popular, a growing number of consumers are considering switching their subscriptions over. More than 90% of of online newspaper readers consider news content somewhat or very valuable. However, when it comes to paying out of pocket for content , most consumers would pass. A Nielsen study found that only 36% of responded has paid or would consider paying for an internet-only news source. Adweek Media/Harris Poll study noted that only 23% of US Internet users were willing to pay for online news. Consumer attitudes toward paid content, and specifically mobile paid content, are slowly shifting. Overall all, the financial outlook for paid magazine apps looking like it is going to go up.
Figure 5
Paid vs. Free Mobile App Store Downloads Worldwide 2011-2016, in billions, according to Gartner in (000) 2011
Free downloads Paid downloads Total downloads Free as a % of total
Figure 6
Figure 7
SITUATIONANALYSIS
Market Analysis
Market Size
Total Universe Population: 230,416,000 National Geographic Brand Universe: 30,909,668 The Apple iPad used to be the preferred tablet of choice followed by Android. As this still holds true, the number of iPad tablet users has decreased from 81% to 52% over the past year. It appears that the Apple iPad has lost many of its users to the Android. Even though the number of iPad users may be decreasing, the amount of tablet users is increasing and will continue to do so. In fact, eMarketer.com estimates the number of tablet users will increase from 34 million in 2011 to 70 million at the end of 2012.
Own a tablet: Own an iPad: Read media content on tablet in past 6 months: Read Nat Geo on Tablet:
US Tablet Users and Penetration, 2010-2015, according to eMarketer 2010 Tablet users (millions) % change % of total population % of internet users 13.0 4.2 5.8 2011 33.7 158.6 10.8 14.5 2012 69.6 106.5 22.0 29.1 2013 99.0 42.3 31.0 40.4 2014 119.3 20.5 37.0 47.5 2015 133.5 11.9 41.0 51.9
Therefore, it is imperative that Nat Geo builds an effective promotion strategy that entices users to overcome the price point by 2014.
SITUATIONANALYSIS
Frequency with Which Mobile Device Users in Canada Download a New Mobile App, % of total, according to Ipsos Reid
Smartphone Feb 2011 Multiple times/day Daily Few times a week Once a week Few times a month Once a month < Once a month Never 1% 3% 8% 9% 24% 16% 36% 4% April 2012 0% 1% 7% 6% 19% 17% 48% 3% Feb 2011 2% 6% 19% 20% 27% 12% 14% 2% Tablet April 2012 1% 3% 14% 9% 21% 17% 34% 2%
users (just 3%) are responsible for nearly one-fifth of spending either on or in apps, while more than 70% spend little or nothing.
These statistics are originally published by ABI Research February 2012, in their Mobile Application Business Model study.
SITUATIONANALYSIS
Consumer Analysis
To better understand the target consumer for the National Geographic tablet app, two populations were analyzed: National Geographic Magazine readers and people who have used apps to access mobile versions of magazines. likely . Together these two demos consist of ______ of magazine app users, despite making up ______of the U.S. population. Likewise, as income drops, app usage drops as well. More than any other factor, having a high income seems to determine app usage. This trend breaks slightly with regards to age. One would expect college graduates and high-income earners to be older, but the peak age for mobile magazine app usage is ______, followed by ______ This goes against the trend of those who own tablets, mobile magazine apps are used on cellphones, of demographics. who tend to be ______. However, more than half of all which ownership does not skew toward o ______ National Geographics peak readership/viewership (in terms of index) lives in ______, the region holds the lowest index for app usage, at ______
Geographic Magazine. In terms of income, the Nat Geo reader is much wealthier than average. The reader is ______ more likely to make ______ per year, and ______of all Nat Geo readers rises, so does the index. have a personal income of ______As income This figure goes hand-in-hand with the Nat Geo readers level of education. ______ all Nat Geo more likely to have graduated. On the other readers have attended college, and readers are ____ end, only ______of readers have not graduated from high school. Age doesnt seem to matter with Nat Geo readers. No age demographic from 18 to 65+ has an index of under ______ or over ______, meaning the age distribution of readers roughly matches that of the U.S. Nat Geo seems to have mass appeal with regards to age.
access the internet have accessed a magazine via use cellphones while ______ use tablets to
cellphone, almost half of tablet users have done so. ___ access magazine apps, despite the fact that only half as many people who use the apps own tablets. As the population of tablet owners increases (as it has been), one can expect mobile magazine app usage to rise greatly.
more likely to use apps to access magazines. Those with an income of $100,000-149,000 are ______more
SITUATIONANALYSIS
Consumer Analysis
Quantitative Research
A convenience-sample survey with 35 tablet owners provided the information included here. It was particularly interesting to note that the majority of those surveyed prefer buying individual issues of magazines buying subscriptions, but that their preferred price to pay for apps is lower than the single-issue price for the Nat Geo app, which suggest they may be unwilling to buy issues for this reason.
Which magazines do you read on your iPad, and what made you purchase these apps?
Sports Illustrated, SPIN. I already had a subscription to SI, which I could use on my iPad. I liked the layout and interactive features the digital subscription of SPIN offered. Entertainment Weekly, free with print subscription Glamour, Time, Real Simple, I already subscribed to them in the paper versions so the iPad version was free. Wired, Nat Geo, GQ, New Yorker, Atlantic, Sports Illustrated, ESPN, Time. Already have print subscriptions to these magazines.
Take away: Most people have migrated from the print to the app.
SITUATIONANALYSIS
Consumer Analysis
Qualitative Research
Through in-depth interviews our goal was to uncover the motivations and barriers toward buying apps, specifically paid digital magazine, among current tablet owners. In the five interviews with a variety of individuals with tablets, not just iPad owners, we found key similarities that verified our secondary research and added some additional insight.
I bought it to help me with work, but it is somewhat of a guilty pleasure for me. I absolutely love media. I love movies, TV shows and because of Netix I can watch them whenever. Since I am constantly doing things, my free time could be 11:00 a.m. or 2:00 a.m. I have to have exibility.
SITUATIONANALYSIS
Competitive Analysis
In our research, Smithsonian Magazine, Popular Science, and Popular Mechanics were the main applications that stood out that may have an effect on National Geographic. While Apple and the App Store do not release share and download data, we can look at price point and comparison of features.
Store Appearance Nat Geo (ranked 8th on top grossing newsstand apps)
Reviews
Review Content
Looks very nice Up-to-date with descriptions of the features from the current issues No special design Looks very bland It is up-todate though
Beautiful photos Free with subscription Dont understand why its not free Other people say its common sense that you dont get a magazine for free Like the special features, says it goes the extra yard Retina support is subpar Everyone seems frustrated
2.5 overall
Total Year subscriptions subscription Nat Geo Smithsonian Popular Science Popular Mechanics ______ 2,075,114 1,301,695 1,224,228 $19.99 $19.99 $14.99 $19.99
SITUATIONANALYSIS
SWOT Analysis
Strengths Name recognition (one of worlds largest nonprot scientic and educational institutions) Leveraging owned assets: magazine, channel, etc. Easy accessibility of app Extras and special interactive content Great demos currently reached by Nat Geo Opportunities Tablet owners interest in purchasing media content (i.e. newspapers, magazines, TV shows) Shifting attitudes towards paying for digital Virtual storefronts like Newsstand Increasing tablet and smartphone sales Flipboard Weaknesses Little promotion done to this point Nat Geo website difcult to navigate Brand differences between mag and channel
Threats Declining print subscription revenue Increasing types of tablet OS systems Next Issue platform Subscribers preference for print versions Preference for free apps Flipboard
OBJECTIVES &
STRATEGIES
MARKETING OBJECTIVE
Get a ______ increase in total app downloads
ADVERTISING OBJECTIVE
Show current Nat Geo subscribers the added benets (extra content, interactivity, etc.) of reading the magazine on an iPad
MEDIA OBJECTIVE
Leverage owned media to get ______ of the current Nat Geo subscribers who own iPads to download the app
WHO
Current Nat Geo readers who own iPads
WHAT
Owned media that reach current subscribers the magazine,
WHEN
Leverage when new magazines are sent to subscribers to prompt them to download the app for extra content
WHERE
Nationally, both online and ofine
HOW
$ ______ budget Reach our target any time they interact with Nat Geo content
TACTICS
SOCIAL MEDIA
Post Instagram pic about the app
594,000 followers Post pictures that correlate with stories that have extra content in the iPad app. Link to download app. Day of drop and ve days after
ONLINE
Send emails about app to subscribers Place ads on Nat Geos own website
MAGAZINE
Mention app on front cover of magazine Full-page editorial about app (QR Code) Have author mention at end of article
To see interactive content about this article, download the National Geographic app...
APP
In-app pop-ups encouraging readers to rate and review the app in the App Store for the chance to win a Nat Geo jacket
TV
Keep TV production costs down by having hosts/narrators mention app
Example: Explorer Stay away from brand-inconsistent shows Get more from Nat Geo by checking out our app...
Use credits at ends of shows Advertise app on bottom of screen during show
Continuously running throughout all of Nat Geos shows
OBJECTIVES &
STRATEGIES
MARKETING OBJECTIVE
To increase National Geographic tablet app subscriptions in the United States by ______% ( ______).
ADVERTISING OBJECTIVE
Get existing tablet owners to purchase a yearly subscription of the National Geographic app.
MEDIA OBJECTIVE
Get ______% of the ______ Curious Travelers purchase a yearly digital subscription of National Geographic.
WHO
Curious Travelers - Current tablet owners who have graduated from college and earn more than $75,000 a year. This is a psychographic target, but ideally, members of this group are within the age range of 35-54. Curious Travelers are business travelers, and they are considered ambitious business professionals. They are in a comfortable place in their career, climbing upward, and they consider themselves successful. Members of the target are familiar with National Geographic magazine because of its prominence and popularity when they were growing up. They have disposable time and income and are interested in traveling, photography and other cultures. They are passionate about learning. Curious Travelers care about how others perceive them and want to make a good impression. Curious travelers are technology savvy. As heavy smartphone and tablet users, they check email, access content on the Internet and play games on these devices. Curious Travelers are reading things online because its convenience ts their busy lifestyle . Technology is both a source of
CURIOUS TRAVELER
WHEN
This is a year-long campaign with a three month test period, September-October. Based on a successful test period, our next period is January - March and then April - June. We are avoiding the family travel months: December, July and August.
WHERE
Geographically, our campaign targets Delta Airlines major travel hubs for business professionals - like New York City, Atlanta and Minneapolis for our rst test period.
Atlanta
Minneapolis
Because we aim to target business travelers during their trip, our campaign will catch Curious Travelers in airports as well as at Marriott hotels (lobbies and rooms). This campaign focuses on places where the target has down time and have access to wi to easily download the National Geographic app. Our next test periods will focus on American Airlines hubs in Dallas, Los Angeles and Chicago, and U.S. Airways hubs in Philadelphia, Phoenix and Washington D.C.
WHAT
National Geographic will mainly use outdoor/nontraditional tactics to reach Curious Travelers when theyre traveling. These tactics will catch them when they have free time to read through the app. Word-of-mouth tactics will also be considered in order to increase talk about the cool, interactive features the app offers.
HOW
Because Curious Travelers are at terminals and common travel locations often, well be reaching them with high frequency tactics. This campaign has low reach because were focusing on a very specic group of business travelers.
TACTICS
GIFTING
As an incentive to purchase the National Geographic yearly subscription, when a Curious Traveler buys a subscription as a gift for a friend, family member or coworker, they will receive a free one for themselves. This promotion is the call-to-action featured in each of the tactics. National Geographic will feature this gifting
RATIONALE
Not only does National Geographic get one reader, but theyll also receive another reader who the gifter believes will enjoy the magazine. Because of this, this tactic has high reach. Being able to give someone something has a positive, special association. A Curious Traveler will take advantage of this opportunity to give a National Geographic subscription to someone they know will enjoy it as much as him/herself. In return, the person receiving the gift is grateful. And, since the magazine app was referred to by someone they know well, theyre more likely to read the content and appreciate the interactive features.
RATIONALE
While sitting in an airport or hotel, Curious Travelers want to browse the Internet and are going to try to access the WiFi. Boingo Wireless is a reputable public company that provides global Wi-Fi services. They have more than 400,000 hotspots worldwide, including hundreds of airports and thousands of hotels. This is a reliable source of Wi-Fi that Curious Travelers have to go through in order to access the Internet that they want. Because there is a login process to access Wi-Fi, National Geographic captures Curious Travelers at the point when theyre trying to use the Web. We have their attention for at least 15 seconds on the splash page to promote what the app has to offer. Curious Travelers want to access the Web, so were grabbing them as soon as they enter it. And, were targeting Curious Travelers not only when the Internet is accessible, but also when they have time to download and browse the National Geographic app.
AIRLINE LOUNGES
National Geographic will partner with Delta Airlines to promote their app and reach Curious Travelers. Specically, well be targeting airports in three large cities: Atlanta: Hartseld-Jackson
Minneapolis: St. Paul New York City: JFK
In each of the respective cities, Curious Travelers will see various advertising in the Delta Sky Club. Based on the Executive Media Network, well be using the following advertisements: Framed portrait posters
Experiential campaigns HD display ads
The ads will show off the the apps interactive features and include a call-to-action to purchase the app as well as promote the gifting tactic.
RATIONALE
Curious Travelers are constantly traveling for business. In fact, according to Executive Media Network, the average business traveler that comes into their reported lounges visit clubs about 5 times per month. These airline lounges are a good place to reach our target frequently since theyre visiting these locations often. EMN also reported that these average visitors are our target - upper-class business travelers. When they visit the lounges, their stay lasts about 1 hour and 41 minutes each time. Targeting airline lounges catches Curious Travelers during their free time - when theyre sitting around, waiting for their ight. The experiential campaign, specically, lets Curious Travelers actually interact with the National Geographic app. Letting them try out the engaging features can encourage them to purchase the app later. The framed portrait posters and the HD display ads increase awareness. When Curious Travelers are in these airline lounges, theyll see these ads frequently to
HOTELS
National Geographic partners with Holiday Inn hotels in our targeted cities: Atlanta, Minneapolis and New York City. Specically, well be utilizing the following hotels:
Atlanta - Atlanta Airport Marriott Minneapolis -Minneapolis Airport Marriott New York City - New York LaGuardia Airport Marriott
Hotels in Atlanta, Minneapolis and New York City all offer airport shuttles that cater to Curious Travelers and are less than 10 miles away from the airport. Stickers are placed on the cover of USA Today newspapers. These papers are delivered to each room in the hotel. The sticker promotes the National Geographic app as well as the gifting opportunity. There will be National Geographic branded table toppers with an attention grabbing photo and the same type of promotion featured on the sticker.
BIG IDEA
National Geographic will partner with Marriott to transform a Marriott hotel into a National Geographic adventure. National Geographic will decorate the lobbies, hotels rooms and elevators to give a Curious Traveler an unexpected adventure. In return for Marriott letting us transform their hotels, they will receive free full page 4C ad in National Geographic which is worth $236,730
RATIONALE
After a long day of meetings and travel, Curious Travelers go to their hotel to relax and unwind. We want National Geographic to be apart of that relaxation period. USA Today is a newspaper that is delivered to rooms in the mornings and is available in the hotel lobby. Since Curious Travelers mornings are a me time, taking advantage of daily newspapers theyre most likely going to read offers high reach and frequency. Also, since these Curious Travelers usually travel alone for business, theyre most likely going to take the USA Today with them to breakfast to read while eating. Theyll also see the table toppers during this down period as well. Were capturing Curious Travelers at this prime time when theyre relaxing and have the extra time to browse through things.
BUDGET
This campaign will run in three month intervals. The total estimated cost for one month for all the tactics would be $ ______ for ______ impressions. We estimated the total cost per month for each tactic: Boingo: $ ______ for ______ impressions for ______ days a month Airport Lounges: $ ______ for ______ impressions per month USA Today: $ ______ for ______ impressions for business days during each month Table Toppers: $ ______ for ______ impressions per month For a three month period, this campaign would cost $86,542.80 for 507,981 impressions.
SUCCESS MEASUREMENT
Success will be measured by the amount of subscriptions bought each month. The minimum numbers of yearly paid subscriptions needed varies by tactic: Boingo: ______% ______ subscriptions) of the total impressions per month Lounges: ______% ( ______ subscriptions) of the total impressions per month Marriott hotels (USA Today and table toppers): ______% ( ______ subscriptions) of the total impressions per month By reaching the Curious Traveler frequently and at specic touch points we anticipate our subscription rate will be higher than our benchmark for success. Boingo: ______% ( ______subscriptions) of the total impressions per month Lounges: ______% ( ______subscriptions) of the total impressions per month Marriott hotels (USA Today and table toppers): ______% ( ______ subscriptions) of the total impressions per month This would mean a total of ______ new subscribers per month which will bring in a net income of $ ______ per month.
LONG TERM
If the test run goes well, we plan on implementing the campaign during the following months in the following cities:
Cities Dallas/ Fort Worth, Los Angeles, Chicago OHare Philadelphia, Phoenix, Washington D.C.
April - June
U.S. Airways
This campaign will not only reach Curious Travelers, but their friends and family who have received a National Geographic subscription as a gift as well. This will double the amount of people seeing the magazine. We are estimating a 40% renewal rate for Curious Travelers, their friends and family.
Sources
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"Paid vs. Free Mobile App Store Downloads Worldwide, 2011-2016 (billons)." EMarketer. N.p., 11 Sept. 2012. Web. 27 Oct. 2012. <http://totalaccess.emarketer.com/Chart.aspx? R=126304&dsNav=Ntk:basic%7cpaid+app+trends%7c1%7c,Ro:0>. Pogue, David. "A Buffet Of Magazines On a Tablet." Editorial. The New York Times 28 Apr. 2012, B1 sec.: n. pag. The New York Times. The New York Times, 12 Apr. 2012. Web. 28 Oct. 2012. <http://www.nytimes.com/2012/04/12/technology/personaltech/the-next-issueapp-a-buffet-of-magazines-state-of-the-art.html?pagewanted=all>. "Tablets Show Content Monetization Potentia." EMarketer. N.p., 11 July 2011. Web. 27 Oct. 2012. <http://totalaccess.emarketer.com/Article.aspx?R=1008488&dsNav=Ntk:basic %7cpaid+magazine+app%7c1%7c,Ro:3>.