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ECONOMIC UPDATE April 25, 2011

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ECONOMIC UPDATE April 25, 2011 April 25, 2011 US Postal News USPS mailer with PURL, QR Code, and Tear-Out Form in one!...........................................................1 Book/Directory Industry News Yellow Pages Association rebrands as Local Search Association ........................................................2 Popularity of books in digital platforms continues to grow.....................................................................3 Kindle users to be able to borrow library e-books.................................................................................4 Catalog/Retail Industry News Macy's making sustainable strides.......................................................................................................6 Rite Aid appoints new EVP merchandising ..........................................................................................6 Direct Marketing Industry News Money-back guarantee for US advertisers to try direct mail..................................................................7 Magazine Industry News Top May advertising monthlies: ‘Wired’ with humor and ‘Style’.............................................................8 Out of bankruptcy, Reader's Digest Association goes shopping .........................................................10 Wired’s newest iPad issue boasts its best feature yet: Free ...............................................................10 Bloomberg Businessweek app gets personal with users ....................................................................11 Tina Brown's Newsweek a hit on newsstands ....................................................................................12 Health mag gets ‘tagged’ with smartphone codes ..............................................................................13 Magazine publishers scramble to streamline their app production......................................................13 ECONOMIC UPDATE GDP: (3rd Revision) 3.1% in Q4 2010 (up from 2.6% Q3 2010) (Q1 2011 Estimate Released on April 28) Unemployment Rate: 8.8% in March 2011 (down from 8.9% in February) Consumer Confidence: 67.5 in March 2011 (down from 77.5 in February) US POSTAL NEWS USPS mailer with PURL, QR Code, and Tear-Out Form in one! (Digital Nirvana – April 15, 2011) Original Link: http://thedigitalnirvana.com/2011/04/usps-mailer-with-purl-qr-code-and-tear-out-form-in-one/ There was a fold-out mailer on my counter this morning from the United States Postal Service. When I opened it up, I got quite a surprise. The mailer, which was promoting its flat-rate boxes and envelopes, had not just one or even two calls to action. It had three of them! All the ones we love to see: QR code, PURL, and tear-out form. On the marketing letter was a QR code. When scanned, it took me to an easy-to-navigate mobile site that allowed me to request samples of the boxes and envelopes using an online form. For those not wanting to use the code, there was also a pre-filled insert that I only had to drop in the mail. At the top of the insert was tear-off form with a personalized URL — prioritymail.com/myname. 1 Granted, there were oddities in the mailer. The USPS included a personalized URL but not personalized QR code. The tear-out form was prefilled, but everything on the personalized URL was not. (I assume they used the personalized URL for tracking, but since they clearly knew my name, why didn’t they at least personalize with that? Not to mention boost their form fill rate by prefilling the form with the information they already had?) Even the drop-down menus in the forms were odd in that the Post Office asked my ZIP code, then asked me to identify my state. Shouldn’t the Post Office — of all places — know that? But the USPS got something right. It understands that not everyone wants to respond to a marketing campaign the same way. Some will want to use their mobile device. Others a laptop or desktop computer. Others traditional snail mail. The fact that USPS offered multiple ways for consumers and businesses to respond to the call to action (free shipping kit), I am certain, dramatically boosted the campaign’s success. That they used PURLs and QR codes was very encouraging, too. Yet another high-profile marketer mainstreaming and giving a high level of credibility to these approaches. How many ways do you give your customers (and your customers’ customers) to respond to a campaign? Do you force them into a one-size-fits-all funnel? Or do you give them options to respond in the ways they feel most comfortable? BOOK/DIRECTORY INDUSTRY NEWS Yellow Pages Association rebrands as Local Search Association (DM News – April 17, 2011) Original Link: http://www.dmnews.com/yellow-pages-association-rebrands-as-local-search- association/article/200801/ Trade group the Yellow Pages Association will rebrand as the Local Search Association on April 18. The organization decided to change its name because a growing number of its members now work in digital search, said Negley Norton, president of the group. “We changed the brand because it's really a better reflection of the products and services that our members are offering today,” said Norton. “When you think about their businesses, they have all transformed their business models to include Yellow Pages, local search, wireless platforms, social media, online video and the like.” Norton said the digital portion of its members' businesses have been “growing steadily,” with the medium representing “close to 30% of revenues” for some companies. He added that the organization timed the rebranding to coincide with its annual conference, which began April 16 in Las Vegas. The trade group is also developing an online local search directory for its members to interact with one another, said Norton. 2 The organization also said it has signed new members, including online local business directories CityGrid Media, MerchEngine and Kudzu. “These would never be companies that would join the Yellow Pages Association,” said Norton, adding that the group's pivot towards digital attracted them. Popularity of books in digital platforms continues to grow (Book Business – April 18, 2011) Original Link: http://www.bookbusinessmag.com/article/popularity-books-digital-platforms-continues- grow/1#utm_source=bookbusinessmag.com&utm_medium=home_page&utm_campaign=today-in-book- publishing-tab Powerful continuing growth of books on digital platforms both eBooks and Downloaded Audiobooks are highlights of the February 2011 sales report of the Association of American Publishers, which is being released today. The report, produced by the trade association of the U.S. book publishing industry, tracks monthly and year- to-date publishers' net sales revenue in all categories of commercial, education, professional and scholarly books and journals. According to the February results, once again e-Books have enjoyed triple-digit percentage growth, 202.3%, vs February 2010. Downloaded Audiobooks, which have also seen consistent monthly gains, increased 36.7% vs last February. For February 2011, e-Books ranked as the #1 format among all categories of Trade publishing (Adult Hardcover, Adult Paperback, Adult Mass Market, Children's/Young Adult Hardcover, Children's/Young Adult Paperback). This one-month surge is primarily attributed to a high level of strong post-holiday e-Book buying, or "loading," by consumers who received e-Reader devices as gifts. Experts note that the expanded selection of e-Readers introduced for the holidays and the broader availability of titles are factors. Additionally, Trade publishing houses cite e-Books as generating fresh consumer interest in--and new revenue streams for--"backlist" titles, books that have been in print for at least a year. Many publishers report that e-Book readers who enjoy a newly-released book will frequently buy an author's full backlist. For the year to date (January/February 2011 vs January/February 2010), which encompasses this heavy post-holiday buying period, e-Books grew 169.4% to $164.1M while the combined categories of print books fell 24.8% to $441.7M.* According to Tom Allen , President and Chief Executive Officer of AAP, "The February results reflect two core facts: people love books and publishers actively serve readers wherever they are. The public is embracing the breadth and variety of reading choices available to them. They have made e-Books permanent additions to their lifestyle while maintaining interest in print format books." 3 Allen added that book publishers have been leaders among content providers in identifying and serving new audiences. "Publishers have always strategically expanded into all the markets and formats where readers want to find books, whether it was Trade Paperback, Mass Market or now digital. By extending their work as developers, producers and marketers of high-quality content to emerging technologies, publishers are constantly redefining the timeless concept of 'books.'" Other highlights in the February 2011 report (all February 2011 vs February 2010 unless otherwise noted): E-Book sales were $90.3 Million, growing 202.3% vs February 2010. Downloaded Audiobooks were $6.9M, an increase of 36.7%. Trade categories: Adult Trade categories combined (Hardcover, Paperback and Mass Market) were $156.8M, down 34.4%. Children's/Young Adult categories combined (Hardcover and Paperback) were $58.5M, a decline of 16.1% *Year-to-date 2011 vs YTD 2010: E-Books increased by 169.4% while all categories combined of print Trade books declined by 24.8% Religious books: February sales of $48.5M were an increase
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