Slides from the ThreePm Breakdfast Presentation - new pricing, new partners, new secure payments system, new team

1. ThreePM Presentation
• Secure payments
• New commission structure
• Christmas
• Market trends
• New partners
• New ThreePM team
• General housekeeping
• Questions

2. Secure payments system

3. Secure payments system
• Now live on our test site, www.magbooks.co.uk
• Going live across all sites from first week of September
• The changes
• Current: we transmit card details to bureau/publisher
• New: we take money and send order details to fulfilment and pay money
to your account
• Why we’re doing it
• PCI compliance
• Flexibility on pricing and increased sales
• Opportunities with more partners
• What it will involve
• Weekly files and remittances
• New contracts
• We need your bank details by 11 August

4. New pricing structure

5. New pricing structure
• Responding to publisher feedback
• Lower rates for lower prices
• Majority of publishers would have saved money
in 2010

6. New pricing structure
• Direct debits
• No change to standard rates
• £10 on trial subscriptions
• Bespoke rates for major promotions
• Lower rates on cheaper cc deals
• Sub rate under £20: commission = £10
• £20-£34.99: commission = £12
• £35-£59.99: commission = £14
• £60 and over: commission = 25%

7. New pricing structure
• Publisher benefits
• You have choice and flexibility
• Most publishers will save money
• Improved margins
• Lower CPAs on competitive offers
• Improved quality of orders

8. Christmas activity

9. Christmas activity
• No major offline promotions
• 2010 ‘cost share’ model
• Not cost effective for publishers
• CPA very high across all channels
• Best = £21
• Average = £40

10. Christmas activity
• Price banded offers
• Sophisticated gift selector
• 12 days of Christmas email
• Partner emails
• Reviews
• A whole new range of partnerships…

11. Christmas activity
 Think about price points
 Review and add copy
 Flick-throughs work at Christmas
 Talk to us about bespoke promotions
 Calendar
 Christmas prices for all titles & January start dates by
Friday 23rd September
 Christmas covers by Friday 21st October
 New Year prices by Friday 25th November

12. Market trends

13. Market trends
• Low consumer confidence
• High inflation
• Household incomes falling
• Job insecurity
• Wages trailing inflation
• No retail sales growth
• Consumers looking for value
• Driving online growth
• £14b spent online in 2003 vs £44b in 2010
• Consumers estimated to have saved £18b in 2010

14. Growth in online

15. James Mangan
Group Circulation Manager
Seymour Distribution

16. RSV
16
£100,000,000
£110,000,000
£120,000,000
£130,000,000
£140,000,000
£150,000,000
£160,000,000
£70,000,000
£80,000,000
£90,000,000
Feb - Apr 08
Mar - May 08
Apr - Jun 08
May - Jul 08
Jun - Aug 08
Jul - Sep 08
Aug - Oct 08
Sep - Nov 08
Oct - Dec 08
Nov - Jan 09
Dec - Feb 09
Jan - Mar 09
Feb - Apr 09
Mar - May 09
Apr - Jun 09
Newstrade RSV & Sales Volume
May - Jul 09
Jun - Aug 09
Jul - Sep 09
Aug - Oct 09
Sep - Nov 09
Oct - Dec 09
Nov - Jan 10
RSV
Dec - Feb 10
Linear (RSV)
Jan - Mar 10
Feb - Apr 10
Mar - May 10
Regular Frequency Product for “closed months” to date
Apr - Jun 10
May - Jul 10
Jun - Aug 10
Jul - Sep 10
Aug - Oct 10
Sep - Nov 10
Sales Volume
Oct - Dec 10
Nov - Jan 11
Linear (Sales Volume)
Dec - Feb 11
60,000,000
70,000,000
80,000,000
90,000,000
100,000,000
110,000,000
120,000,000
130,000,000
140,000,000
150,000,000
Sales Volume

17. RSV
17
£20,000,000
£30,000,000
£40,000,000
£50,000,000
£60,000,000
£70,000,000
£80,000,000
Feb - Apr 08
Mar - May 08
Apr - Jun 08
May - Jul 08
RSV
Jun - Aug 08
Jul - Sep 08
Linear (RSV)
Aug - Oct 08
Sep - Nov 08
Oct - Dec 08
Nov - Jan 09
Dec - Feb 09
Jan - Mar 09
Feb - Apr 09
Mar - May 09
Sales Volume
Apr - Jun 09
May - Jul 09
Linear (Sales Volume)
Jun - Aug 09
Jul - Sep 09
Aug - Oct 09
Sep - Nov 09
Oct - Dec 09
Nov - Jan 10
Dec - Feb 10
Newstrade RSV & Sales Volume Exc Weeklies
Jan - Mar 10
Feb - Apr 10
Mar - May 10
Regular Frequency Product for “closed months” to date
Apr - Jun 10
May - Jul 10
Jun - Aug 10
Jul - Sep 10
Aug - Oct 10
Sep - Nov 10
Oct - Dec 10
Nov - Jan 11
Dec - Feb 11
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
Sales Volume

18. Segment Bubble Graph RSV Feb – Apr 2010 v 2011
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ag rr.
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ei
Year-on-Year RSV Variance
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-10%
&
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(1.
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.2
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-15%
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en
(0.7%) Women's Interest
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ag
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(41.1%)
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ot
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Computing (2.3%)
or
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or
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cy
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Men's Fash/Int
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c.
Buying & Selling
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(6
(0.7%) (2.7%)
...
-30%

19. Year on Year Decline Supermarkets
Year on Year Supermarkets
May-10 - Apr-11 May-09 - Apr-10 % Change
12 month y-o-y (RSV) £649,942,946 £675,859,551 -3.8%
12 month y-o-y (Sale) 421,996,356 446,260,963 -5.4%
12 month y-o-y (Supply) 625,650,008 650,396,853 -3.8%
Feb-11 - Apr-11 Feb-10 - Apr-10 % Change
3 month y-o-y (RSV) £161,134,724 £170,851,678 -5.7%
3 month y-o-y (Sale) 105,930,009 112,188,909 -5.6%
3 month y-o-y (Supply) 156,526,209 166,868,201 -6.2%

20. Year on Year Decline WHS HS and Travel
Year on Year WHS HS and Travel
May-10 - Apr-11 May-09 - Apr-10 % Change
12 month y-o-y (RSV) £232,207,975 £246,499,903 -5.8%
12 month y-o-y (Sale) 88,079,589 97,394,878 -9.6%
12 month y-o-y (Supply) 152,831,251 165,562,488 -7.7%
Feb-11 - Apr-11 Feb-10 - Apr-10 % Change
3 month y-o-y (RSV) £55,738,717 £57,146,291 -2.5%
3 month y-o-y (Sale) 21,035,278 22,135,576 -5.0%
3 month y-o-y (Supply) 36,582,993 38,464,371 -4.9%

21. Year on Year Decline Independents
Year on Year Indy Retailers
May-10 - Apr-11 May-09 - Apr-10 % Change
12 month y-o-y (RSV) £412,364,149 £463,029,693 -10.9%
12 month y-o-y (Sale) 258,642,817 293,323,082 -11.8%
12 month y-o-y (Supply) 454,632,742 504,394,494 -9.9%
Feb-11 - Apr-11 Feb-10 - Apr-10 % Change
3 month y-o-y (RSV) £96,919,486 £113,524,617 -14.6%
3 month y-o-y (Sale) 62,447,133 71,390,395 -12.5%
3 month y-o-y (Supply) 108,272,585 125,485,810 -13.7%

22. Subs Need To Support Newsstand
• Traditional newsstand sourced subs:
• Cheap but helping decline
• New subscribers are essential:
• People who never buy in retail or infrequently
• Web is the key to finding new subs
• Current routes – brand sites, PPC, SEO, affiliates,
data for 2nd stage marketing
• New routes & audiences
• ThreePM strategy
• Provide new routes
• Quality and quantity subscriptions

23. DSLR Photography Magazine
Period ABC Newsstand Subs
J–D ’08 23,000 20,975 2,025
J–D ’09 29,208 23,004 6,188
J–D ’10 33,184 23,041 9,981
• Dennis Publishing use a multitude of sub
sources
• Just under 5,000 trial subs were
generated by ThreePM

24. Partners

25. Partners

26. Partners

27. Partners

28. Partners

30. New partners
• Reaching into new markets
• Targeting online consumers
• In time for Christmas
• No extra costs or charges
• You are still in control
• Decide which sites you want to be listed on
• Exclusive offers

31. New Team
• Natalie Brooks • Emma Bradfield
• Don Brown • Tatiana Heredia
• Leo John • Antje Kompa
• Katrin Perry • Alexandra Nicolae
• Steve Price
• Charlene Spaine

32. House keeping
• Covers and copy
• Cover prices
• Flick throughs
• Zinio editions
• Apps and access
• Microsites

33. Questions?