What publishing and politics have in common
1 March 2008
What do publishers know?
Look at political fundraising today and you’ll recognise a number of familiar publishing and direct marketing techniques. All current US Democratic and Republican candidates, for example, offer donors what we publishers call a Continuous Credit Card payment option (CCC).
When promoting to the public, we don’t actually call it that because we like to sell the idea a bit. So we call it something more user-friendly like a ‘subscribers automatic renewal program.’
Politicians call it a ‘recurring monthly’ payment.
Whatever – it’s a subscription.
The subscription business model
Publishers were early adopters of the subscription business model. Many other industries now use it, including charities, political parties, investment, property, theatre, software, online gaming, ISPs, membership organisations and online music/video sites. All are discovering the important advantages that the subscription model, both free and paid for, offers.
What else do media and politics have in common?
Well, they share the same bed for a start.
The current media love affair with the US candidates (which Obama appears to be winning, by the way) will enter a new state – marriage – when one of them is elected president.
Then there will be a honeymoon period. Then familiarity sets in. And as often happens (to others, not to me) things within the marriage begin to get tetchy. The arguments become louder and louder.
In publishing it’s necessary, as a boss, to exercise as much control as you can over your market. That is true of all business. But take that controlling attitude home to your partner and divorce will result.
That is what happens with politicians and the media. The politicians try to control the media. They do not share a happy bed. Break-ups happen in the USA because they always do. They happen wherever free media exists. It’s never an easy marriage and guess who gets the last word? The media.
Launching an idea
The lesson is, get your requests for donations in as early as possible in the affair. And that is what Obama, Clinton and others are doing. It’s simple direct marketing – marketers know that response to any promotion is strongest during the launch period.
Once you are set up, when things go wrong at least you have some time to put it right before everything comes to a sad end.
Publishing companies are masters at the whole business of launching an idea.
Publishers own a unique status in the day-to-day world of business. Few companies have so much control, nor so much influence on our daily lives and the lives of politicians.
A publishing team will identify a new market, create, design and decide the concept, organise the launch, promote to the audience, collect names and payments. A publisher will plan for the long term – for a wide and firm commitment for delivering their product to a market year after year until its shelf-life ends.
Just like a presidential candidate.
No-one controls business like a publisher. Except a president
The publisher owns the whole production and distribution system. Those distribution channels not owned by him (such as the news trade) are subservient outlets with little or no say in the development and sale of the product.
Hillary Clinton is good at wholesale. Her donations come from bigger groups and organisations.
Obama is good at retail. His money all comes from individuals.
Obama has, in fact, cut out wholesalers altogether.
Publishers are almost immune from interference
Unlike most product owners the publisher decides its retail price. Newspapers and magazines remain one of the few items you can buy anywhere knowing the price beforehand – the price is published on the cover. Even price-ramping motorway service stations and airport terminal shops have failed to find a way to increase news cover prices. European and other parliaments have consistently failed in their attempts to impose a tax on publications.
Publishers need to constantly sell
Publishers are expert at the toughest of all marketing tasks: selling subscriptions. Once sold, the subscriber is offered a stream of books, events and other information products through the Internet, advertising and direct mail. (At the moment, donors to political candidates funds are regularly asked to donate more.)
It’s a tough business. Publishing exists in a world where there is absolutely no reason why any person needs to buy its products. Magazines and newspapers are not essential purchases – it’s down to the publisher to create the impulse that will convince potential readers to buy.
There are many enterprises that would do well to learn their marketing techniques at the feet of publishers.
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