“I keep seeing more and more traditional media companies entering the niche media world, building niche products, whether digital, print, or combinations of both.”
– Ryan Dohrn, sales consultant and CEO of Niche Media Conference in a recent E&P webinar.
Publishers have noticed traditional media companies delving into their space, launching niche magazines and/or digital products.
The local paper suddenly distributes a lifestyle or parenting magazine, picking off a few advertisers at a time, selling bundles that include the legacy newspaper and digital. A national newspaper launches a cooking website and recipe app. A city magazine spawns a quarterly real estate guide.
So what is a smaller niche publisher to do when facing a much larger publisher that is now a competitor, and should they worry about these one-offs?
First, understand that there will be more competition in the niche space as advertising booms this year – up 9%, according to one estimate – and the benefits of niche publishing become more well-known. However, larger publishers face constraints working in smaller, more specialized areas.
Dohrn says that the trend for newspapers and large magazines is similar to the growth of special sections, the go-to for any needed revenue bump in the pre-Covid era. When traditional publishers and revenue managers needed to hit goals, they just added a particular section, launched a sales drive, and, presto, more revenues.
“Niche publications are like the special sections of the past, attracting advertisers with a shiny new object,” Dohrn said.
Special sections could be dreamed up, sold, and executed in a few weeks. The best ones were kept, and losers were culled on the next year’s editorial calendar. Sales reps went to market with one sheet of special section dates so advertisers could circle the issues they wanted to appear in, a process called cheery-picking. Some reps began to work like telemarketers, selling special sections by email with a follow-up call.
The shiny new object, however, now comes with a warning label. Sales teams with multiple line-item goals and bonuses paid on special section sales could not take a consultative approach.
Publishers wanted but could not have both. As special sections reached a saturation level, salespeople were not only less consultative but had trained advertisers to buy “an ad” rather than a multi-faceted marketing campaign where the big dollars remain. Editors clinging to their jobs were exhausted and discouraged by the onslaught of advertising-driven content.
“We had a problem in the newspaper space; we didn’t know when to say no to special sections,” Dorhn contended. The party was (mostly) over as advertisers continued to drift away.
For broader-based publishers, niche magazines are now the shiny new objects that attract advertisers and a better value proposition, but they carry the same risks.
“Legacy media companies need to be cautious not to get too hooked on niche. If they do, the risk is losing advertisers in the main paper or magazine.”
Ryan advises them to bundle niche products with core and digital offerings. Some of these bundles heavily discount either the niche media or the legacy advertising as a value add, making it hard for an advertiser to turn down, especially in a competitive situation.
To compete, niche media must double down on their niche, playing up their unique benefits and avoiding CPM-based comparisons.
They can also bundle. However, their packages should be 100% niche-based audiences from events, specialized newsletters, and digital products.
If a broader-based media with a niche product can offer greater reach and a discounted CPM through its bundle, smaller niche media can provide the unique advantages of a highly engaged audience and more targeted products in its own.
Content should be a core advantage; the niche media still needs to provide more and the best of original content. To take a classic example, weekly business journals have long outplayed the daily business sections by hiring more reporters than the daily was willing to commit to, thus breaking more stories and writing them specifically for executives.
There are also advantages in better distribution for that niche. A niche business publisher distributing a magazine directly to businesses has an advantage over a daily distribution to general consumers inside the newspaper.
Finally, in the rare case that a niche media faces a competitor with a better formula in every area, advertisers will still buy if they prefer and trust the sales rep. A sales rep experienced in the niche with a consultative approach can make all the difference.
You can join Ryan Dohrn at the Niche Media Conference in Chicago, April 17-20, for conversations about AI, new sales strategies, and a focus on emerging technologies.
