How to print money

The prevailing logic is that only two kinds of magazine are immune from recession: wedding magazines and high-end luxury magazines.

And so, despite the current sub-prime number crisis, several luxury magazines are slated to launch or relaunch in the USA over the coming months.

It may be wishful thinking to persuade advertisers than the sun is still shining really, but a recent report commissioned by Elle suggests that the numbers might just make sense. Apparently, 8% of women are completely recession-proof. Our median model recession-ignorer “is 29, affluent with a median household income of $62,000.” Nice for her, as long as her house isn’t being repossessed and she’s still in a job.

At the same presentation (scroll down the above link), Microsoft identified the Luxury Goods Consumers. They apparently engage with luxury brands in six different ways:

• awareness to seek out information
• admiration in seeing luxury brands’ advertised
• exploration in understanding and authenticating the brand
• consideration in researching and choosing the product
• efficiency and superiority of the purchase transaction
• ownership of exclusive offers/information from a higher level of membership.

It’s these six points that are the nub of what luxury magazines aim to do. These kinds of mags are usually filled with puff pieces, uncritical articles, a bought-in celeb interview, plus behind-the-scenes brand stories, and exclusive offers that make shiny advertisers smile – all printed on very heavy glossy paper. Although the content is better or worse in some over others, the real key in this marketplace is to get the distribution right. You want the genuinely rich, not the aspirational wannabes. You want to keep the advertisers happy more than the readers.

Plenty of magazines already exist for this market of course, but where there’s an opportunity, there’ll be a new launch just aching to have a crack at it. So here’s a roundup of four of the newbies hoping to make hay while the rain pours.

6
What is it? A bimonthly luxury magazine for rich Americans with passports.
What does the name mean? The six “passion points” of wealth, style, travel, design, body and health, apparently. These are six key luxury advertiser targets too, strangely enough.
When does it launch? This November, if things are still on track.
Who’s behind it? McMurry, a large American custom magazine publisher that creates magazines for the likes of GlaxoSmithKline and IBM. They’ve hired Catherine Gundersen from UK Harper’s Bazaar to be Editorial Director, and Ralph Groom from O The Oprah Magazine as design director.
How will it be distributed? It will be mailed free to “a proprietary database of 100,000 American households with an average net worth of more than $25 million.” Subscriptions will not be available; you either get it or you don’t.
What’s the quirky digital strategy? Experience6.com, a video / multimedia adjunct to content in the magazine. Also, a members-only online concierge will plan high-end trips for readers, such as a $75,000 trip to a Scottish distillery. Sounds a bit similar to Nota Bene / Quintessentially, except less frequent and without a members fee. Advertising starts at $27,451 for a one-page ad plus web listing.
Chances of success? I’d put it at 50%. A decent team seems to be behind the scenes, but everything will depend on a) how good that database is, b) how good the polywrap is the mag arrives in, to persuade people to open it up, and c) how good those media sales people are. McMurry are big enough to take a loss for a year or two if they have to; how long they’ll keep it up is another matter. Fellow custom publisher John Brown had a go at their own upmarket magazine in the UK a few years ago with Bare, and was stung badly; McMurry will be hoping for more luck. The website aspect is the least convincing; people might leaf through a magazine if it’s on the breakfast/coffee table, but who’ll want a “multimedia experience” if all it is is an enhanced version of some puff content about expensive watchmakers? Also, print designs online don’t really impress as yet.
More? You can download their entire editorial calendar for their first six issues here.

02138
What is it? An independent magazine for Harvard alumni.
What does the name mean? 02138 is the zip code of Harvard University. If you didn’t already know that, you won’t be getting a copy.
When does it launch? It originally appeared at the end of 2006, until earlier this year; the relaunch is due “later this year.”
Who’s behind it? Then-owners Atlantic Media (who publish The Atlantic Monthly), along with other investors, never managed to make a profit from from the magazine. In May this year, they sold up to Manhattan Media, who mostly publish community magazines and newspapers in New York, including the inauspiciously named Chelsea Clinton News. Manhattan gained an early PR coup for the mag by hiring the hot redesigner of the moment Luke Hayman to touch up the visuals, with, of all people, King George Lois of Esquireland to do their first cover (no, he’s not dead). The publisher is former Maxim group publisher and Giant founder Jamie Hooper. Basically, they’re spending some big bucks here (Roger Black reckons $120,000 just for the designers). The idea is to then roll out seven other unofficial alumni magazines for the entire Ivy League.
How will it be distributed? A harvard.edu email address will do nicely.
What’s the quirky digital strategy? A “social networking site” for alumni, with special events organised for members. As with all new social network sites, if you already use them, you’re elsewhere; if you haven’t started yet, you won’t start here. They should just use existing web tools, and forget about online advertising for now, as it’s not yet scalable, and building the site could get very expensive very quickly.
Chances of success? 30% (with a 10% bonus on offer if they put the Facebook ambitions on hold). Meantime, judging by MM’s current publications, they’ll need to get a whole new class of advertiser, and fast (though those old boy-filled Rolodex should help). At least the magazine has in the past gained some big name interviewees; it’s entirely possible that this has nothing to do with Harvard old boys mistakenly thinking it’s an official university publication.

Manhattan
What is it? A luxury lifestyle quarterly for affluent New Yorkers.
What does the name mean? The word “Manhattan” has been translated as “island of many hills” from the Lenape language. The Encyclopedia of New York City offers other derivations, including from the Munsee dialect of Lenape: manahachtanienk (“place of general inebriation”), manahatouh (“place where timber is procured for bows and arrows”), or menatay (“island”).
When does it launch? September.
Who’s behind it? Modern Luxury Media, a company that already publishers 12 other luxury city titles in the USA. The launch team comes from within the company. The magazines’ content is shared across the network, with the same fashion shoots and celeb interviews in each. A local editor adds in events and real estate information for the relevant location. A different design on each cover makes them look more original than they actually are at closer inspection.
How will it be distributed? 35,000 will be direct-mailed; 20,000 will be sold on the newsstand. The rest will probably end up in hotels, if similar European magazines are anything to go by.
What’s the quirky digital strategy? In order to boost interest, provide content and give advertisers a digital option, Modern Luxury recently acquired luxury emailers JuliB.
Chances of success? 85%. Costs will be high to enter New York, not to mention the competition and the obligatory Hamptons launch party; but the rest of the network seems to be doing well. It’ll impress advertisers, even if it ends up as a loss leader.
More? See their current output in digiformat over at their website.

wsj.
What is it? A quarterly spin off / supplement for selected readers of the Wall Street Journal, and for people who like expensive trinkets, like hedge funds.
What does the name mean? Wussuj is the name of Rupert M’s favourite wombat. The magazine’s working title was “Pursuits”, mercifully ditched in February.
When does it launch? 6th September.
Who’s behind it? Uncle Rupert. Introducing a luxury magazine was known to be a key part of his strategy in buying the Wall Street Journal, despite the failure of News Magazines, News Corp’s short-lived British magazine company. The launch of The Times of London’s quarterly supplement Luxx was thought by many to be a dry run for the American version, a rumour promptly confirmed by the poaching of Luxx’s editor, Tina Gaudoin, to take charge of wsj..
How will it be distributed? Not as a straightforward supplement, if this report is to be believed. Instead, it’s only for those subscribers who earn more than $300,000 (honestly, who subscribes to the Journal and earns less than that??), plus Asian and European readers, and a small number of newsstands.
What’s the quirky digital strategy? If they’re smart, there won’t be anything more than a static PDF Media Kit. The brand’s big enough on its own.
Chances of success? 99%. This one has the backing of the big man.