”Industries in South Africa have recorded some remarkable successes, improving its economy and the quality of life for millions of its citizens. As leaders in Africa, South Africans need to focus on specific elements of business and society to ensure a prosperous future for this continent. These elements include infrastructure development; the protection and management of natural resources; trade and export; effective management of emergencies and disasters; agriculture and proper leisure facilities; and caring for your workforce. In a publishing environment, these disciplines all fall within the business-to-business (b2b) sphere.”
So comments Elizabeth Shorten, managing director of 3S Shorten Publications. She also mentions the SA 2020 scenario, recently completed by the African Leadership Institute (ALI). The scenario included all of these issues in its estimation of the economic, social, political, cultural, environmental and technological factors that should ensure a financially viable future for the continent. Shorten’s ultimate message is implicit: business-to-business publications have an important role to play in the demanding economies in which they operate. We’re talking a publishing sector that is responsible for disseminating accurate, solid editorial that informs business leaders and market influencers. How, then, are the titles holding up? And are they taking their responsibilities seriously enough?
Analysis conducted by the Audit Bureau of Circulation (ABC) suggests that while custom publications have shown significant increases over the past five years, the figures on b2b magazines are markedly down in certain important sectors. In the communications and ICT sectors, for example, total circulations for January to June 2005 are down 27 percent and 20 percent respectively against January to June 2000. Similarly, business management magazines and those in the mining and quarrying sector are also down more than 10 percent over the period. On the other hand, maybe it says something about South Africa’s changing economic landscape that total circulation for the hospitality, travel and tourism sector has bounded up by more than 80 percent.
Some of the publishers appear little fazed by these numbers. ”The most valuable asset in a publishing house is a really good database for magazine distribution,” says Jenny Warwick of Crown Publications. ”It is the policy of many companies and municipalities not to subscribe to magazines. Rather than run the risk of losing some of our most valuable readers we send the journals out free, but our database is tightly controlled and our circulation remains constant.” Warwick also points out that free distribution of b2b magazines is an internationally recognised practice, and thus the laws of ABCs don’t necessarily apply here.
Ken Nortje, director of Malnor Publications, says his group also maintains reasonably static circulation figures. ”We basically allocate a particular cost and market penetration effective print order per magazine. If we find new reader entrants into a market we look to see what less effective [readers] or ‘dead wood’ could be deleted. Thus a relatively static circulation; unless there is a policy decision to include a new sector of a particular industry.”
These considerations aside, do the numbers reflect just a little of the changes to our economy over the last five years? Jacques Breytenbach, managing director at Primedia Publishing, believes they do. ”Such indicators show that b2b magazines are most definitely a reflection of an ever-evolving South Africa. For Primedia, all the b2b titles we publish are diversified in terms of target market, and different factors influence different sectors. For example, legislation changes in the pharmaceutical industry gave Frontshop a boost in terms of advertising rights for certain scheduled medications that may not be advertised in a general consumer magazine. Regulation changes now allow for draftsmen to register with the Council of Architects (as opposed to professional architects only). The impact of this for the magazine means a double-up in readership and a review of their editorial strategy to now cover a larger range of content. Other titles like DIY Trade News are directly linked to the overall health of the national and international economies.”
While 3S Shorten Publications maintains that their titles represent ”pillars” of the economy rather than sectors that are sensitive to short-term trends or ”fashion” sub-economies – and have thus maintained a steady growth pattern – Darren Smith, editorial director at Technews, agrees that from a niche publishing perspective certain economic fundamentals certainly impact on advertising revenue streams. ”Not least of these is the stability, or instability, of the rand. During the currency crises in recent years, when the rand sagged, imported products became prohibitively expensive while the local manufacturing base became artificially competitive, and as such international business boomed but inflationary pressures continued to dampen the local business pipeline. Conversely, in more recent times, with inflation under control and the rand strong and relatively stable, business confidence has blossomed, although both the importers and exporters of technology-based solutions have had to work doubly hard simply to ‘stand still’ in business terms. Added to this, marketing budgets continue to be eroded by the never-ending stream of alternative mediums and opportunities, and this fragmentation makes it tougher for b2b media to stand out from the crowd.”
Smith makes a valid point when he mentions alternative marketing media as an influential factor in the shifting b2b market. The knock-on effect, according to publisher and director at Brooke Pattrick Publications, Gerald Garner, is one of accountability. ”There have been too many magazines published that did not focus on providing information and rather opted to be advertising catalogues filled with press releases. Businesses are hungry for independent and truthful information and I believe that the shift in b2b magazines is thankfully towards more credible information. Those publishers who are willing to invest in better qualified journalists and editors and who can write with authority and insight are the ones that will be successful in attracting new audiences.”
”Businesses are hungry for independent and truthful information and I believe that the shift in b2b magazines is thankfully towards more credible information.” Gerald Garner, publisher and director, Brooke Pattrick Publications
Competition is never a bad thing. If the plethora of b2b publications and increasing audience fragmentation means that publishers have to work harder to keep their audience, then that’s surely all the better for the readers. It’s no wonder then that editorial issues like content and presentation have been upped a notch on the quality scale. Smith maintains a stance his colleagues may find controversial when he says: ”By and large, b2b publications still lag their consumer counterparts in terms of editorial quality, design quality and overall packaging, but this is probably true the world over. Having said that, the leading South African b2b titles are world class and continue to push the publishing bar to a higher level.”
What’s also interesting to note is that online publishing, that looming giant, is viewed by some within the b2b sector as more of a complementary opportunity than a hindrance. ”Online is the saviour of b2b,” says Dave Marsh, managing director of Now Media. ”For every printed magazine that closes there are three new b2b sites that take their place. The immediacy, coupled with no variable production costs and low distribution costs, makes it very attractive for new entrants. The trick of course is to make money out of sponsorships and banner advertising, which is the difficult part. Today much of our profit comes from the online titles even though the print margins have never been better. It’s my opinion that in sectors where news is important, online media may chip away at print titles. However, where magazines are read because they have in-depth content that is not so time-sensitive they will continue to be friendly for the reader.”
”Online plays an important role in the b2b sectors in which Technews publishes,” comments Smith. ”I believe this importance will only increase, rather than diminish, in the years to come. We have embraced online opportunities with vigour, having used the web to add value to our business, as well as to our readership from as far back as 1997. We have found that online services (be they web-based content, web-based directories, or e-mail newsletters) complement our print business, and have become a strategic competitive advantage for us.”
So where do the growth opportunities lie for b2b publications if the trend is for circulation figures within South Africa to remain fairly steady? The publishers say there are possibilities both in niching the market even further as well as in looking beyond our shores towards the rest of Africa. ”Africa beckons,” says Smith. ”South Africa is still the engine of Africa but it is clear that the eyes of South African business are looking north. When business moves, so too do the infrastructure, IT, security, manufacturing and technology vendors.” Nortje agrees: ”There could certainly be profitable expansion of some circulations in Southern Africa for many of our advertisers.” Africa however brings a new set of challenges, not least of which is the question of how to successfully distribute publications to the appropriate target markets.
Until Africa happens, Shorten and Garner both suggest the possibilities for future growth lie in increased focus. ”While some publishers continue to increase their mailing lists at random, the key for us is in becoming even more niched,” says Garner. Shorten agrees. ”B2b will become more niche and community focused with more emphasis on electronic and new media products. But b2b’s essentials will remain the same, with diversification in the medium in which it is delivered.”
Is this not a market heading for saturation? Only in some sectors, according to Garner. ”I believe there are too many titles in a number of fields, such as mining and construction. The irony is that publishers continue to emulate already successful titles by launching new magazines in opposition to those titles. In the meantime there are sectors within the South African economy that are not serviced by any b2b titles at all. Publishers should become more innovative when looking for gaps in the market and ensure that there is a proven need for their new titles. It really makes no sense to try and slice the existing cake into smaller pieces.”
While these options are being bandied about, the level of quality is still an issue upon which this sector appears to remain focused. Publishers need to hone their levels of innovation, not only to sustain their brands and market positions but also to grow their businesses. Says Breytenbach: ”If you’re planning to see 2010 and 2015 as a leading publisher, you need to change your perspective, your community involvement and business approach now. The game is on.”