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US Postal NewsUPS delivers first global B-to-B campaign, 'We love logistics'...............................................................1Postmaster General addresses need for fundamental change .............................................................2Book Industry NewsChildren’s e-books still far from tipping point ........................................................................................4Random House Inc. partners with smashing ideas to create children's apps ........................................4Catalog/Retail Industry NewsU.S. retailers and suppliers remain cautiously optimistic ......................................................................5Best Buy Q2 profit leaps 60% on rising sales.......................................................................................6Talbots reinvests in brand, increases catalog circulation ......................................................................7Walgreens streamlines with management shift ....................................................................................8Walmart's merchandising shift has five brands dancing in aisles ..........................................................8Direct Marketing Industry NewsMarketers are listening more to social media, but taking little action...................................................10Magazine Industry NewsColdwater Creek's investment in direct pays off .................................................................................11Rodale announces partnership with game developer .........................................................................11Magazine women on the verge..........................................................................................................12Elle publisher rebrands corporate name, logo ....................................................................................14Harman, Diller could bring 'News-Beast' to life...................................................................................14Traditional Home October issue “tag sale” brings edit and ads to life with video .................................15Reader’s Digest returning to its 'roots'; to roll out more than 20 new products next year .....................16

ECONOMIC UPDATEGDP: 1.6% in Q2 2010 (down from 3.7% Q1 2010)

Unemployment Rate: 9.6% in August 2010 (up from 9.5% in July)

Consumer Confidence: 53.5 in August 2010 (up from 50.4 in July)

US POSTAL NEWS

UPS delivers first global B-to-B campaign, 'We love logistics' (DMNews – September 13th, 2010) Original Link: http://www.dmnews.com/ups-delivers-first-global-b-to-b-campaign-we-love-logistics/article/178825/

By Shahnaz MahmudUPS launched its first global business-to-business campaign, “We Love Logistics,” on September 13 to emphasize its breadth of services. The campaign includes direct mail, print, TV, digital, social media and out-of-home and targets business decision-makers.

The company worked with Ogilvy & Mather Worldwide, its global advertising agency of record, on the effort, as well as the agency's specialist units. UPS hired Ogilvy last October.

September 20th, 2010

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“Logistics became the focus as a way to articulate everything we do,” said Betsy Wilson, director of global advertising at UPS, which has acquired more than 40 companies in the past decade to bolster its services. In addition to package delivery, UPS offers trucking and air freight, retail shipping and business services, customs brokerage, finance and international trade services.

UPS is first launching the campaign in the US, UK and China, followed by Mexico on September 20. It will run the effort in 25 countries.

The shipping company also created a dedicated microsite, www.thenewlogistics.com, which contains downloadable case studies of some clients, including electronics company Toshiba and plumbing product company Toto USA, said Maureen Healy, VP of customer communications at UPS. There is also a corresponding Facebook fan page, Twitter feed and YouTube channel, she said.

Wilson said the company will measure customer engagement and business impact.

“[We want to emphasize] UPS has a way to partner with clients and bring value to your business through our integrated network,” said Healy.

Postmaster General addresses need for fundamental change(WhatTheyThink – September 17th, 2010)Original Link: http://whattheythink.com/news/index.cfm?id=46465&utm_source=whattheythink&utm_medium=rss&utm_campaign=rss

In his annual state of the business address to the mailing industry, Postmaster General John E. Potter today stressed that long-term sustainability for the Postal Service will be achieved through fundamental change.

"The Postal Service must have the ability to manage its business, and to adapt quickly to the needs of our customers and the marketplace," said Potter. "And our business model must change to reflect the reality of a volatile economy and a communications marketplace that has been undergoing a transformation as profound as anything that has ever come before."

Despite cutting spending by $3 billion in 2010, the Postal Service continues to seek meaningful change for greater control over business decisions, including delivery frequency, pricing and products, public policy and workforce flexibility.

Potter's comments came during the National Postal Customer Council (PCC) Day broadcast, an annual event that brings together mailers, industry partners and customers to recognize their contributions to the Postal Service and outline future plans and goals. PCCs are a network of community-based business mailers and representatives of the Postal Service, who meet regularly to share ideas and resources to create a closer working relationship.

In the midst of financial and regulatory challenges, the Postal Service achieved major milestones during fiscal year 2010, including:

- 17 percent reduction in work hours

- 20 percent increase in Total Factor Productivity

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- The smallest career complement in 10 years - a reduction of 200,000 positions through attrition or retirement, 100,000 over the last three years.

The Postmaster General also looked forward, telling PCC members that new flat-rate products and a Priority Mail "Regional Rate Box" are being developed and will be available as of January 2011.

Other successful innovations in mail will return, including the Summer Sale, an expansion of the Saturation Mail Sale and a new incentive program included in the exigent price filing, "Reply Rides Free," that would allow mailers to use bill and statement mailings for advertising messages.

Potter also challenged PCCs and the mailing industry to embrace change, asking for their best ideas on new products and services the Postal Service could pursue and encouraging them to become a part of the Postal Service's "era of innovation."

Members of the Mailers Technical Advisory Committee participated in an Innovation Symposium in August and a similar symposium is planned for October with CEOs, consumer groups and marketing professionals around the country.

PCC leaders were asked to solicit their members for three innovative ideas and to submit them for consideration at usps.com/pcc. Regular updates will be provided and a special reporting session is planned for the National Postal Forum next May.

But, Potter stressed, even as the Postal Service focuses on new ways of doing business and changing its business model to address a constantly changing consumer and business environment, the Postal Service remains true to its mission of universal service.

"Service is still our priority, which we'll continue to improve as we work toward achieving long-term sustainability through fundamental change," he pledged.

National PCC Day also showcases the work of PCCs and includes a series of awards recognizing outstanding service and individual achievement. The following award winners were announced:

- PCC Industry Member of the Year: Theresa Peterlein, Mid-Michigan PCC

- PCC Postal Service Member of the Year: Laurel Stengal, Long Island PCC

- PCC of the Year: Tampa PCC (large market), Central Missouri (small market)

- PCC Mentor of the Year: Sacramento PCC

- Communication Program Excellence: Greater Portland PCC (gold), Buffalo/Niagara PCC and Greater New York PCC (silver) and New Hampshire PCC (bronze)

- Education Program Excellence: Greater Portland PCC (gold), Buffalo/Niagara PCC (silver) and Long Island PCC and Tampa PCC (bronze)

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BOOK INDUSTRY NEWS

Children’s e-books still far from tipping point(Book Publishing Report – September 15th, 2010) Original Link: http://www.bookpublishingreport.com/content/children%E2%80%99s-e-books-still-far-tipping-point

As we’ve been watching the Amazon and Sony bestseller lists for more than two years now, we’ve seen the actual number of children’s e-books making an appearance on the top 25 e-book bestseller lists tick up slightly, but the pace is exceptionally slow. As e-books and e-book reading devices have been pitched to busy adults, most of the titles that do fall within the top 25 are juvenile-aimed titles being bought by adults (like the Twilight series).

Data from the Kaiser Family Foundation’s 2010 Generation M report shows the activity of reading books doesn’t even show up when children and young adults consume media on cell phones, which collectively are more popular e-reading devices than the dedicated E-Ink readers. It’s also quite possible the monochromatic screens simply don’t lend themselves well for a lot of children’s books; particularly illustrated titles for young children (who aren’t likely to have their own e-reader anyway).

Even though digital children’s books are still trundling along, there clearly hasn’t been a shortage of online, social media and mobile marketing initatives which are complementing print titles (think The 39 Clues, the Harlequin Teen imprint, and Diary of a Wimpy Kid), which probably makes some publishers wonder when/if/how the entire experience will go online.

Random House Inc. partners with smashing ideas to create children's apps(Book Business – September 14th, 2010)Original Link: http://www.bookbusinessmag.com/article/random-house-inc-partners-with-smashing-ideas-create-childrens-apps/1#utm_source=bookbusinessmag.com&utm_medium=home_page&utm_campaign=today-in-book-publishing-tab

Random House Inc., the largest U.S. trade-book publisher, announced today a partnership with digital media agency Smashing Ideas to develop book-based children's Apps for mobile devices. Seattle-based Smashing Ideas is a cutting edge developer of immersive, interactive experiences for all screens, building digital products and destinations around brand characters in the children and youth markets. Random House Children's Books will work in close collaboration with Smashing Ideas' newly formed ePublishing group—led by the co-creator and developer of the smash hit, Alice for iPad—and with key Random House children's books authors, illustrators and brands to produce innovative digital products that marry story, design, and technology.

"With App stores being the fastest-growing new channel for digital content, we're excited to work with an experienced partner to build upon our shared expertise and their exceptional track record in this space," says Madeline McIntosh , President, Sales, Operations, and Digital at Random House Inc.

"We are thrilled to be working with Random House to build out this category. Random House brings an extraordinary publishing history and a state-of-marketplace understanding of children's book content, brands and their audiences. By combining their incredible knowledge with our extensive experience in the digital space, we will partner together to create a new frontier of enriching and cutting-edge reading for children," says Steve Jackson, President and CEO of Smashing Ideas.

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"Smashing Ideas is an ideal partner at this most exciting time in children's publishing," says Chip Gibson, President and Publisher, Random House Children's Books. "We're eager to bring fresh, smart and interactive experiences to our readers and are delighted to be working with such an innovative company on these creations."

Random House Children's Books is the world's largest English-language children's trade book publisher. Creating books for toddlers through young adult readers, in all formats from board books to activity books to picture books, novels, and e-books, the imprints of Random House Children's Books bring together award-winning authors and illustrators, world-famous franchise characters, and multimillion-copy series.

The company's Web site, offers an array of activities, games, and resources for children, teens, parents, and educators. Random House Children's Books is a division of Random House, Inc., whose parent company is Bertelsmann AG, a leading international media company.

CATALOG/RETAIL INDUSTRY NEWS

U.S. retailers and suppliers remain cautiously optimistic (Market Watch – September 14th, 2010)Original Link: http://www.marketwatch.com/story/us-retailers-and-suppliers-remain-cautiously-optimistic-2010-09-14?reflink=MW_news_stmp

Amid continued trepidation about the health of our nation's economy, retailers and suppliers believe consumer spending is better than last year and gradually making a comeback. According to the second annual retail outlook study released today by CIT Group Inc, a leading provider of financing to small businesses and middle market companies, 65% of retailers and 69% of suppliers believe consumer spending may return to 2007 levels by the end of 2011.

The research report, "U.S. Small Business and Middle Market Outlook 2010: Retailers and their Suppliers--Smarter. Leaner. Cautiously Optimistic," prepared in association with Forbes Insights, examines how middle market retailers (those with annual revenues of $25 million to $1 billion), as well as suppliers and manufacturers (those with annual revenues from $2 million to $1 billion), have weathered the recession and gauges their outlook of the future.

"While the majority of retailers are cautiously optimistic about their future, more than two-thirds expect revenues to grow over the next 12 months," said Burt Feinberg, Managing Director and Industry Group Head of Retail Finance at CIT. "The general consensus is that, having weathered the economic downturn, most retailers are in better shape today than in 2009 and have positioned themselves well to meet future consumer demand when it returns."

Since the market downturn, retailers and their suppliers have had to work smarter and operate more efficiently. They continue to maintain a conservative approach along the entire supply chain by conserving cash, paring down inventories, and keeping staff levels lean.

"Some valuable lessons have been learned from the economic crisis and many suppliers believe they are better positioned for strong and sustained growth once the economy turns," said Jon Lucas, Executive Vice President and Chief Sales Officer of Trade Finance at CIT. "This study reveals an industry that is transforming, top to bottom."

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Retailers also had a positive view of the upcoming holiday season, with more than two-thirds (68%) of retailers planning to hire more seasonal workers than in 2009. In addition, 57% expect to stock more inventory than in 2009 and 69% say they will advertise more aggressively. However, 72% expect they will discount more this year than last.

Key findings from the report:

-- Middle market retailers remain cautiously optimistic and guarded in their outlook. Sixty percent of retailers say that, over the last 12 months, their revenues have grown (55%) or grown significantly (5%) and two-thirds expect revenues to be higher still in the coming 12 months. However, sales expectations may still be below the levels seen prior to the economic downturn.

-- Retail inventory levels are rising, but retailers are proceeding cautiously. Nearly 60% say their current inventory is higher than it was a year ago. At the same time, they're quick to reduce prices to speed their inventory turns, and they're using technology to track demand and purchasing more closely.

-- Retailers' capital spending will concentrate on technology. Over the next 12 months, 83% of retailers expect investments in their Web sites to increase; 69% say they will increase investments in mobile applications; and 66% will increase spending for integration of in-store and technology-enabled channels.

-- Small and middle market suppliers show a similarly positive, but cautious, outlook. Seventy-four percent of suppliers anticipate growth over the next 12 months. Fifty-five percent will achieve and support this growth through new investment in product development, while 51% will put greater focus on operating efficiencies.

-- Suppliers continue to look for ways to manage their cash flow more effectively. While one-third say it is easier to manage their cash flow today than it was a year ago, 39% say it is harder. The number of suppliers indicating that they have begun to use factoring or credit insurance rose from 23% in 2009 to 35% in 2010.

-- Financing conditions for suppliers appear to be getting better. Two-thirds (67%) of survey participants say their ability to secure financing has improved over the past year. Additionally, nearly two-thirds of suppliers and manufacturers say they expect their financing needs to grow (40%) or significantly grow (23%) over the next 12 months.

Best Buy Q2 profit leaps 60% on rising sales(Retailing Today – September 14th, 2010)Original Link: http://www.retailingtoday.com/story.aspx?section=CeEntertainment&id=151975

Best Buy Co. said Tuesday that net income for the second quarter ended Aug. 28 surged 60% to $254 million, compared with $158 million in the year-ago period.

Revenue, driven by sales of cell phones, appliances and tablet computers, increased 3% to $11.34 billion, from $11.02 billion last year. By division, domestic revenue rose 3% to $11.3 billion while international revenue rose 6% to $2.9 billion.

Results were also boosted by profit from Best Buy's standalone mobile stores and lower promotional and loyalty program costs.

Same-store sales dipped 0.1%.

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In-store customer counts fell during the second quarter, said the retailer, but average tickets rose.

Talbots reinvests in brand, increases catalog circulation (Marketing Powers Activate – September 10th, 2010)Original Link: http://marketingpowersactivate.com/2010/09/talbots-reinvests-in-brand-increases-catalog-circulation/

Following a period of financial hardship, multichannel retailer Talbots said this week that is has begun reinvesting in the business, including increasing catalog circulation.

Talbots faced a series of setbacks beginning in 2008, including financing difficulties, poor sales, staff cutbacks and a reduction in catalog circulation.

During a conference call this week with analysts to discuss the company’s second quarter financial results, however, Talbots COO Mike Scarpa insisted the retailer is on the road to recovery.

“We have made steady progress in our financial results of the last 12 months driving significant improvement in operating income and restoring a strong balance sheet,” said Scarpa. “We believe the second half of this year is a critical time to begin to reinvest in the business to drive sustainable growth and profitability over the long term,” he continued.

Part of that reinvestment includes renewed efforts around building brand awareness, said Trudy Sullivan, president and CEO at Talbots, during the call.

“In the second quarter, our marketing included increased catalog circulation aimed at customer reactivation and increased prospecting via the Web to capture new customers,” said Sullivan. New customer acquisitions have increased in the double digit range compared to last year, reactivated buyers are returning at a greater rate and existing customers are buying more, she continued.

Sullivan also pointed to a new brand advertising campaign that includes print ads in the September issues of MORE, Vogue, InStyle, Elle and Oprah. In addition, the retailer is investing in regional advertising in markets with recently refreshed stores.

To support the branding effort, Talbots will continue to drop direct mail in the third quarter, including catalogs. There will be two September catalog mailings this year compared with one last year to reflect a new merchandising strategy. Talbots is also upping its commitment to online search and banner advertising. In addition, the retailer will partner with fashion and lifestyle experts for local events.

For the second quarter ended July 31, Talbots sales decreased 1.3% for a total of $300.7 million while comparable store sales decreased 1.4% during the same period.

Second quarter direct marketing sales, which include catalog and Internet, where approximately flat compared to last year, totaling $49.9 million. Year-to-date, direct marketing sales increased 13.5% compared to last year’s first half.

The retailer reported second quarter income from continuing operations totaling $0.5 million or $0.01 per share, compared to last year’s loss from continuing operations of $20.5 million, or $0.38 per share.

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Walgreens streamlines with management shift(Drugstorenews.com – September 16th, 2010)Original Link: http://www.drugstorenews.com/story.aspx?id=152217

An unannounced but significant realignment of top management at Walgreens will streamline the company’s decision-making and reporting apparatus — and boost its ability to execute a constantly evolving merchandising and marketing strategy throughout its vast retail network, a company official said Wednesday.

Walgreens confirmed Wednesday that it has quietly shifted the reporting structure for president and CEO Greg Wasson and his top lieutenants, as outlined in an internal memo to department heads. Under the new management plan, two EVPs — Mark Wagner, EVP operations and community management, and Kermit Crawford, EVP pharmacy services — have been named presidents of their divisions. In line with the change, two other senior officers — VP merchandising Bryan Pugh and Kim Feil, VP and chief marketing officer — now report directly to Wagner.

Previously, both Pugh and Feil reported directly to Wasson. “As a result, Greg has fewer direct reports,” one source inside Walgreens told Drug Store News. Prior to the change, the source added, “virtually all of the senior management team was directly reporting to Greg Wasson.”

The change brings the number of senior executives holding the title of division president to three. The first such post has been held by Hal Rosenbluth, SVP and president of Walgreens’ health-and-wellness division.

In line with the restructuring, Colin Watts, VP new product development and chief innovation officer, now reports to Crawford in pharmacy services.

One company insider described the management changes as a way “to assist in our execution efforts and have greater alignment across the organization.”

Walmart's merchandising shift has five brands dancing in aisles(Advertising Age – September 13th, 2010)Original Link: http://adage.com/article?article_id=145845

Walmart's much-talked-about Project Impact isn't dead, but the merchandising strategy that knocked thousands of items off the retailer's shelves and cleared the aisles of promotional merchandise over recent years is finished.

That, combined with moves to give regional and store managers more power over what their stores carry and how merchandise gets displayed, stands to have a major impact on a host of marketers over the next year. The brands and players at right are among the immediately identifiable winners, though many of the category resets that will add back thousands of items to Walmart's shelves won't take place until early next year.

While much discussion around Bentonville and nationwide among Walmart suppliers has written off Project Impact as a goner, the reality is less dramatic, more like an amputation. The program to reinvigorate growth at Walmart always focused on 10 words. Seven remain operative. Three -- referring to the "Win, Play, Show" merchandising and assortment strategy -- have been tossed out of the lexicon, according to several people familiar with the matter.

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The first four of the remaining ones: "Save Money. Live Better" refer to the slogan adopted in 2007 from Interpublic Group of Cos.' Martin Agency, Richmond, Va., along with the redesign of the chain logo.

The next three words: "Fast, Friendly, Clean" remain in the Impact dictionary as well. Those refer to efforts to improve the store environment and shopping experience and fall into the area new Walmart U.S. CEO William Simon formerly ran and which appears to have gained considerably more power in the new order.

What's gone are "Win, Play, Show," in which Walmart reduced assortments widely and often let price leadership over competitors narrow or disappear entirely in the "Play" and "Show" categories. Reversal of that, along with return of merchandise to aisles, or so-called "Action Alley," is having the biggest, well, impact on brands. Among the beneficiaries so far, according to people familiar with the matter:

Hefty OneZip:

This brand, along with Glad, got eradicated from the food-bag aisle after a Walmart category review last year. Starting in April, it got a small amount of space back, and more recently it's fully regained its shelf space.

Pampers:

P&G Chairman-CEO Bob McDonald on an earnings conference call last month lavishly praised the shift to Mr. Simon at Walmart, and later noted that Pampers would be among the brands likely to benefit from "some of the changes in the retail environment we've talked about." Since Pampers isn't distributed at Costco or big dollar chains Dollar General and Family Dollar, Walmart takes on added importance for the brand. It's one reason P&G is widely believed to "over-index" at Walmart, and why it should broadly benefit from increased display space at the giant retailer.

Wisk:

This detergent brand had been booted from retailers in the recent years and hanging on to distribution in only around 10% of Walmart stores. Timing proved fortuitous, as Wisk was planning a formula upgrade and major marketing push for August just as Walmart was relaxing its assortment stance. The result is full national distribution for Wisk.

Elmers Glue:

Timing is everything, and the decision to open up "Action Alleys" again in many stores just in time for back-to-school season put this staple of the season in high-traffic areas. As many store managers and marketers were scrambling to find merchandise to put into the expanded displays, Elmer's was read, saving what had been feared would be a down quarter because of diminished display space.

Chex Mix:

A reset of the snack section recently has brought the item-count for this General Mills brand from an Impact-reduced three up to eight.

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DIRECT MARKETING INDUSTRY NEWS

Marketers are listening more to social media, but taking little action (Direct Marketing News Wire – September 15th, 2010)Original Link: http://www.directmarketingnewswire.com/2010/September/Marketers-Are-Listening-More-to-Social-Media-but-Taking-Little-Action.htm

Research shows that seven out of 10 companies are actually using social media tools in their marketing efforts, a 37 percent increase from a year ago. However, only one-third report making any changes to products and services based on customer feedback. According to the second annual PRWeek/ MS&LGroup Social Media Survey, which polled 262 US chief marketing officers, VPs of marketing and marketing directors, many companies are listening to what’s being said online, but few are taking action that could allow them to increase return on investment (ROI) and ultimately drive the bottom line.

ROI Still Remains a Hurdle

While social media presents a unique opportunity for marketers to get to know their key audiences through online engagement, the survey shows measurement remains a major hurdle. While lack of time and resources were the biggest challenges reported in the 2009 survey, this year’s survey shows the major barriers are determining ROI and the lack of education and tools to make it happen. Forty-five percent say the biggest challenge is the inability to link social media activities to sales and revenue, while 41 percent say it’s the inability to break out the impact of social media from other marketing efforts and 39 percent admit they don’t even have the tools.

“Marketers are now realizing that social media presents nearly unlimited possibilities for companies to drive innovation,” said Jim Tsokanos, President of the Americas, MS&LGroup. “What we continue to see, however, is that many are using the tools as a means of listening to audiences, but they are failing to engage in the conversations that will ultimately drive the bottom line.”

Education is Key

The survey also found that almost half of marketers (48%) say their company can’t keep pace with industry leaders breaking new ground, and 44 percent say their company is actually falling behind competitors in the social media space. Keeping current with the latest social media trends, companies must commit to providing social media experts and formal training to educate marketers and stay ahead of the curve.

In terms of designating resources to social media, the survey found that more than one-third (35%) said no internal staff or external agency partner is responsible for social media activity. When companies look to hire an external partner, they think of direct marketing agencies (21%), ad agencies (20%), digital agencies (17%), and then PR firms (16%). Media buying/planning agencies ranked last at 12%.

“Education is still the biggest obstacle for marketers, and that is where there is a big opportunity for PR firms,” added Tsokanos. “PR firms are only five percentage points behind direct agencies. We understand conversations and how to build the narrative and tell a story. Our industry is well equipped in this conversation economy to lead education, strategy and engagement of social media.”

What’s in the Future for Social Media?

The business stakes for social media strategy are rising. Marketers say they expect social media to become even more crucial to fundamental business areas in the next two years. More than half of professionals stated that social media will have a strong impact on generating sales and revenue (58%), 55

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percent say it will impact managing corporate reputation, and 50 percent say it will increase or maintain market share in the next year or two.

MAGAZINE INDUSTRY NEWS

Coldwater Creek's investment in direct pays off(Direct Mag – September 13th, 2010)Original Link: http://directmag.com/catalogretail/news/coldwater-creek-direct-investment/

Apparel marketer Coldwater Creek, which had pulled back on its direct response marketing spending during 2008 and 2009, has come back to the fold. The company sent out roughly 11.7 million catalogs during its most recent second quarter, a 23% boost from second-quarter 2009.

The women’s apparel and gift marketer also increased the number of e-mail messages it sent by 35.2% over second-quarter 2009’s levels, but did not offer specific quantities.

The strategy has paid off, at least as far as revenue is concerned. The company’s direct response operations pulled in $58.1 million during the quarter, or 22.9% of the $253.5 million in second quarter consolidated sales. That’s up from $41.8 million, or 18.6% of second-quarter 2009’s total sales of $225.2 million. The company’s order volume rose as well, contributing $1.2 million in shipping revenue to its top line.

Despite the boost in sales, direct operations generated $11.7 million in operating income – just under 40% of the company’s net income of $29.5 million. The percentage was identical to that of second-quarter 2009’s level.

Coldwater Creek managed to trim its selling, general and administrative expenses from $82.8 million a year ago to $82.5 million. This, coupled with the boost in segment income, helped the company realize $1.5 million in net income for the quarter, compared with a net loss of $4.9 million a year earlier.

The company spent $8.8 million on direct response advertising during the most recent quarter, up from $8.4 million a year earlier. Its non-direct advertising expenses rose from $3.1 million a year ago to $5.2 million.

Rodale announces partnership with game developer (Publishing Executive – September 13th, 2010)Original Link: http://www.pubexec.com/article/rodale-inc-announces-partnership-with-game-developer-ubisoft/1#utm_source=pubexec.com&utm_medium=home_page&utm_campaign=today-in-publishing-tab

Today, Ubisoft and Rodale Inc., publisher of Men's Health and Women's Health magazines, announced a new partnership to create workouts specifically tailored to men's and women's individual fitness goals and needs for the new video game, "Your Shape: Fitness Evolved." Available exclusively on Microsoft's Xbox 360 video game and entertainment system, the game will launch alongside Microsoft Kinect for Xbox 360 in November, 2010.

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Bringing together gaming and fitness industry leaders, this partnership marks the first foray into the video game business for Men's Health and Women's Health and the first in-game magazine partnership for Ubisoft. "Your Shape: Fitness Evolved" will deliver dynamic, interactive, customizable and convenient at-home workouts, created by Men's Health and Women's Health fitness experts.

The programs from Men's Health include "The Sleeve-Busting Arms Workout," and "The Ultimate Men's Health Fat Loss Workout." The workout programs from Women's Health include "The Perfect Legs and Butt Workout," "The Toned Arms and Shoulders Workout," and "The Skinny Jeans Workout". All workouts are designed so that users can integrate free weights into the programs.

"Microsoft's Kinect platform allows us to deliver precise fitness instruction and form-based feedback into the home," said David Zinczenko, Editor-in-Chief of Men's Health and Editorial Director of Women's Health. "We're excited to partner with Ubisoft to further expand the Men's Health and Women's Health brands beyond the pages of the magazines and give gamers everything they need to shape up."

"Most people probably don't associate killer abs and weight loss with video games, but, now they can," said Tony Key, Senior Vice President of Sales and Marketing at Ubisoft. "The partnership between Ubisoft's "Your Shape: Fitness Evolved" and Men's Health and Women's Health leverages their fitness know-how to develop the most effective workouts possible."

As part of the partnership, the game will be co-marketed by Men's Health, Women's Health and Ubisoft. In addition, some of the featured workouts from Men's Health and Women's Health will be available as a free application on Apple's iPhone and iTouch devices.

Magazine women on the verge (Mediaweek – September 12th, 2010)Original Link: http://www.mediaweek.com/mw/content_display/news/magazines-newspapers/e3i510df2a338e15e6d88f8bb4f158c1b52?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+Mediaweek-Magazines-And-Newspaper+%28Mediaweek+News+-+Magazines+and+Newspaper%29

With all the corner office shake-ups at magazine companies this summer, a time ends when two of its biggest players, Time Inc. and Hearst Magazines, were helmed by women—a lamentable fact, given that magazine readership is predominantly female. Which led us to wonder: Who will be the industry’s future female heavy hitters? We picked five—and this list is by no means inclusive—whose experience, impact and smarts make them worth watching.

Jeannine Shao Collins, evp, chief innovation officer, Meredith 360 As head of Meredith’s integrated marketing unit, Shao Collins sits on a unique perch in her company and, perhaps, the industry. The parent of Better Homes and Gardens, Parents and others, Meredith’s publishing group created the unit to capitalize on the shift in marketing dollars from traditional media-based to customized programs. As its leader, Shao Collins’ job is to address clients’ needs using the company’s many media and custom marketing assets.

It requires her to work well with the brands’ publishers and editors, but as a past publisher there, Shao Collins has cred with them. At 360, Shao Collins doubled the revenue in 2009 and tripled her client roster, helping earn her the distinction of Adweek’s Executive of the Year in 2009 and just last week, a promotion from svp. “A lot of people tout the Meredith model,” said Steve Bloom, svp, director of magazines, Zenithmedia. “They’re content-centric, not channel-driven. She’s been a driving force behind that.” Shao Collins also has the people skills such a job requires. Recently, she got a group of clients to join her in putting up new homes in New Orleans for Rebuilding Together, a Meredith cause. “It’s an experience none

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of us will ever forget,” she said. As publishers realize print ad pages are no longer their savior, someone with her experience will only grow in value.

Robin Domeniconi, svp, chief brand officer Elle Group When Hachette Filipacchi Media looked for a new chief brand officer of its flagship Elle, it went for someone with strong digital experience.

Domeniconi was vp, U.S. ad sales for marketing and publishing at Microsoft after nearly two decades in print, including stints running Time Inc. corporate sales and publishing Real Simple.

“Robin has a diverse background,” said Bonnie Barest, evp, group account director at MPG. “She was involved in publishing. She also embraced digital.”

She’ll have her work cut out for her as Elle has lost ground in ad pages since 2009, per PIB. She’s confident she has the right experience for Elle, though. “What I learned at Microsoft is how people interact with content and how to create ways for people to customize their content,” she said. “Now I can take that knowledge and content we have and offer it to the consumer in a way that can be interactive and customized.”

To wit, Elle’s new iPad app lets readers personalize their experience, and Domeniconi said spinoff apps are in the works.

Donna Kalajian Lagani, svp, publishing director, Cosmopolitan Kalajian Lagani was early in seeing the need to sell magazines as brands. When she joined the Hearst juggernaut in 1995, she saw a magazine that needed a feistier sales effort, and so the credo Fun Fearless Female was born.

“I saw this incredible brand that had been undermarketed,” she said. “So we launched Fun Fearless Female. It was a way to put [not only] a spin on the brand but also a name on the reader.”

Under her watch, Cosmo spawned other spinoffs and marketing stunts from a Sirius satellite radio show to Bikini Bash, which had hundreds of bikini-clad beach denizens spelling out the name of sponsor Nivea. All the while, the flagship is still going strong; it just raised its rate base, to 3 million from 2.9 million in January 2011. “She’s done a great job of keeping Cosmo relevant,” said Ildi Pap Conrad, U.S. director, print investment, OMD.

Connie Anne Phillips, publisher, InStyle After toiling at Condé Nast’s Vogue for 14 years, rising to managing director in 2008, Phillips got a chance to run her own show in 2009, when she jumped ship for InStyle. And she hasn’t disappointed.

InStyle has since become a more formidable rival to Vogue in the high-stakes fashion/beauty magazine field (helped, no doubt, by m.e. Ariel Foxman’s makeover). With her first September issue, she grew ad pages in one of the worst years in the annals of magazines. For first half 2010, InStyle passed Vogue in pages.

Phillips also has pumped up InStyle’s digital and events business. This fall, she launched an online popup boutique aimed at high-end advertisers. Her background may be fashion heavy, but Jane Deery, president, PGR Media, doesn’t see that limiting her: “If there were an opportunity outside the fashion arena, she has what it takes.”

Gina Sanders, president, CEO, Fairchild Fashion Group Condé Nast seems to have bigger things in store for Gina Sanders. She’s sold all kinds of magazines there, from Gourmet to Details to Lucky. Notably, she was launch publisher of Teen Vogue, a title that’s done surprisingly well in a category that has seen

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plenty of casualties. (And, she’s married into the Newhouse family; hubby Steven Newhouse is a digital exec at the company.) In February, she was tapped to run Fairchild, the company’s B2B unit.

The move takes her away from the company’s high-profile consumer magazines but gives her broader business oversight. With B2B’s tough print prospects, she’ll be mainly focused on growing digital revenue and seeking partnerships with Condé Nast’s sexier (and historically separately run) consumer brands.

“We’re very separate, but we are part of the same organization,” she said. “There is a way to work together for the common good on behalf of the company and advertisers.”

MPG’s Barest sees Sanders’ CEO role as priming her for “continual advancement.” But first, she’ll have to figure out how to transcend a challenged trade publishing model (not that we’d know anything about that).

Elle publisher rebrands corporate name, logo(Folio – September 16th, 2010)Original Link: http://www.foliomag.com/2010/elle-publisher-rebrands-corporate-name-logo

Not long after its French parent company shot down rumors that it planned to off-load the majority of its U.S.-based magazines to Hearst, Hachette Filipacchi Media U.S. is getting ready to change its name and subsequently its corporate logo. Moving forward, the company will be known only as HFMUS.

Hachette says the letters in new logo are slanted forward, or toward “the future,” in an effort to “reflect the agile and future-focused mindset of our new corporate culture.” The logo doesn’t include any punctuation to stress the “social community and collaboration” within the company. (Instead of U.S. at the end, US with no punctuation represents the “familial us,” the company says.)

The Elle and Woman’s Day magazine publisher also is getting ready to relocate its headquarters this fall from its longtime 50th St. and Broadway offices to the Time Life Building at 1271 Avenue of the Americas. The company is expected to maintain its other sales and marketing offices in various locations around the country.

HFMUS is owned by Paris based Lagardere Group. In addition to Woman’s Day and Elle, it publishes titles including Elle Décor, Car and Driver, Road & Track and Cycle World.

Harman, Diller could bring 'News-Beast' to life(The New York Post – September 17th, 2010)Original Link: http://www.nypost.com/p/news/business/harman_diller_could_bring_news_beast_kJpMdZap6i1yzz8CMdYEHK

Speculation is swirling anew that Barry Diller is working on a plan to combine his IAC/InterActiveCorp-owned Daily Beast with the Newsweek digital operations.

Such a combination would give both Web operations some critical mass and clear the way for Daily Beast Chairwoman and Editor-in-Chief Tina Brown to oversee the operation as the new editor-in-chief of Newsweek.

The speculation, which has been swirling inside The Daily Beast and Newsweek for weeks, was given an extra push recently when Sidney Harman, the 92-year-old stereo-equipment mogul who finalized the deal

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for the struggling weekly, and IAC Chairman Diller were spotted having drinks together at the Four Seasons in Georgetown.

Jon Meacham, who left as editor-in-chief at the end of the summer, was said to have suggested to Newsweek CEO Tom Ascheim that Brown would make a good successor.

Of course, drinks at the Four Seasons by two moguls is a long way from a deal. But that's often how things start in the media world -- and nobody was categorically denying anything yesterday, either.

Diller, who is on the board of the Washington Post Co., would be very familiar with the workings of Newsweek, which lost more than $40 million over the past two years. Harman is reportedly paying $1 to take over the magazine while assuming up to $50 million in costs.

Harman yesterday told Media Ink, "I don't comment on whom I've had drinks with or speculation of that kind."

Asked if he had reached out to Tina Brown, he said, "That's all part of the same question." An IAC spokeswoman said only: "We don't comment on rumors or speculation."

Ascheim, who, unlike Meacham, will be staying on board as president of the operation under Harman, also declined to comment.

Sources say Brown has been obsessed with Newsweek since Washington Post CEO Donald Graham first put it on the block and that she would love a larger platform and a return to the big-time magazine worldwhere she made her reputation as a buzz-generating boss at Vanity Fair and The New Yorker.

Diller, who reportedly was willing to spend $18 million on the Daily Beast and who remains a big benefactor of Brown's, would relish a graceful exit to the business, which has struggled for ads from the start and seemingly has little chance of making money in the near future.

Brown yesterday was one of the few people commenting. In an e-mail, she said: "The Daily Beast's audience and revenues have grown beyond our wildest hopes of two years ago," she insisted. "I have no intention of leaving either it or my wonderful partnership with Barry Diller."

Traditional Home October issue “tag sale” brings edit and ads to life with video(Meredith – September 17th, 2010)Original Link: http://meredith.mediaroom.com/index.php?s=press_releases&item=549

With its first-ever “Tag Sale,” Traditional Home fully embraces Microsoft Tag technology to take the brand’s 4.6 million design enthusiasts deeper into the stories and advertisements throughout the October 2010 issue.

This month, an interactive 3D experience is as simple as a swipe of one’s Smartphone. As readers flip through the issue, they can scan more than three-dozen different applications to launch video clips featuring designers sharing more information about the products and projects showcased throughout.

“When it comes to utilizing new technology to enhance the reader experience, broaden our advertising partners’ brand message and tap into new audiences of design enthusiasts, Traditional Home is pushing ahead,” says Beth Brenner, Publisher. “The Microsoft Tags are a natural brand extension for us, providing an easy way to deliver even more design tips, ideas and inspiration—which our audience is always looking for Traditional Home to provide.”

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Traditional Home’s advertising partners responded enthusiastically to this unprecedented interactive initiative. Sixteen marketers—including Dacor, Delta, Kravat, Lowe’s, Olay, Stanton, Armstrong and Valspar—elected to have their brand message “tag along” as post-roll immediately following a custom editorial Tip Clip video.

Plus, Traditional Home’s new “Designers Tell All” special section (page 112) features 19 additional advertiser tags—a collection of videos created by the magazine that will inform and engage the decorating novice and energize even the most design-savvy expert. Section participants include: Ann Sacks, Baker, Clopay, Hancock & Moore, Kohler, Kraftmaid, Laura Ashley, Levolor, Lutron, Marvin Windows, Mohawk, the New York Design Center, Overstock.com, Pratt & Lambert, Rocky Mountain Hardware, Rohl, Schonbek, Stickley and Wood-Mode.

“Our October “Tag Sale” is just the first in a series of new digital initiatives that Traditional Home has planned moving into 2011. We’re excited to continue to develop innovative new ideas that deliver relevant design content and advertising messages across multiple channels.”

Reader’s Digest returning to its 'roots'; to roll out more than 20 new products next year(Folio – September 14th, 2010)Original Link: http://www.foliomag.com/2010/returning-its-roots-reader-s-digest-roll-out-more-20-new-products-next-year

While the print edition of Reader’s Digest has cut frequency, slashed rate base in the U.S. and shed staffers, the magazine over the last several months has hinted at a number of new digital initiatives going on there. This morning, the magazine officially unveiled those plans, indicating that it will introduce 24 new products—both digital and print—over the next year.

According to Reader’s Digest Media president Dan Lagani, who hosted the unveiling along with Reader’s Digest global editor-in-chief Peggy Northrop, the magazine is “returning to its roots” as a “trusted curator” of information for its family-centered consumers. The idea, said Northrop, is for Reader’s Digest editors and its content providers to aggregate the most relevant content for its audience. “It’s an expansion of things we’ve tried to do in the magazine over the years,” Northrop said.

Reader's Digest was founded in 1922 by DeWitt and Lila Bell Wallace, and consisted mostly of content from other magazines and sources.

Another important goal, Lagani said, is to make the magazine’s content available across all platforms. The center of this initiative is Reader’s Digest Version, the umbrella from which these digital products will come. Included among them will be an iPad edition that will launch along with the February 2011 issue of the magazine.

Best You, a magazine that was to launch this spring and repurpose editorial from Best Health—a title parent company the Reader’s Digest Association launched in Canada last year—but was put on hold, now is expected to launch as a daily e-newsletter and book imprint under the name Reader’s Digest Best You.

Reader’s Digest also is planning to publish six new special interest publications next year and to launch one new special-themed mobile app each month in 2011. “We’re bulking up this portion of our business quite substantially,” Lagani said.

The publisher also will become “brand-centered” in terms of advertising under the new initiative. Advertisers, Lagani said, will be able to purchase ads on any of Reader’s Digest’s platforms from “one collective brand” instead of separate representatives.

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Lagani also alluded to a new initiative called “We Hear You America,” but did not offer any further details about it.

Parent company RDA reported a $31.8 million operating loss during the six-month period ended June 30, on $850.4 million in revenue. During the second quarter, revenues for Reader’s Digest U.S. decreased 3.1 percent to $177.1 million. Operating profit, meanwhile, jumped 3.2 percent to $39 million.

In June, RDA said it was reducing its global workforce. The cuts reportedly amount to about 10 percent of its overall staff, or about 270 employees. RDA said those cuts will be reflected in second half results and is expected to deliver $34 million in run rate savings.