Will Conde Nast's Domino Magazine Be The Media Model Of The Future?

Feb 7 2014, 5:13pm CST | by

Will Conde Nast's Domino Magazine Be The Media Model Of The Future?

For many years Conde Nast has been one of the biggest names in home and lifestyle magazine publishing. Their domino title, launched in 2005, was the first magazine to “democratize decorating.” It featured designs people could relate to and afford instead of $50,000 couches and antique silver trays (although there were always a few of those too).

Despite its million plus circulation, Conde Nast suspended publication of the magazine when the economy dipped in 2008 and magazine subscriptions, advertising and fashion spending fell significantly.  But the publication is back, and many would argue it’s better than ever.

Today, the quarterly print magazine (which relaunched in October 2013) is coupled with an interactive website that allows consumers to shop articles in-page or directly through a shop tab. domino is trying to build exactly what every magazine reader has dreamed about: a place where there are interesting articles and you can purchase anything you see that strikes your fancy.

Of all of the content/ commerce experiments currently in the market, domino’s chances of success are relatively high for several reasons:

1.     They have a huge evergreen content library that they were able to use to quickly pre-populate the website with rich SEO-friendly content.

2.     They had a large user base they could leverage as a starting point for their marketing efforts.

3.     They have the deep pockets of both Conde Nast (now a minority owner) and private investors who are in on the venture.

4.     Home decor is a good category for impulse purchasing.

Success with domino could mean a lot for magazine/shopping properties where the commerce and content is relatively “siloed” such as The Knot. The hope is that an integrated site will be far more valuable than either a magazine or an online shop alone.

It is clear from the P/E ratio for periodical publishing (11) as compared to ecommerce (230+) that investors see a lot more potential in commerce than in straight advertising plays. The 20x difference between the two industries shows that online commerce is significantly more scalable than selling advertising alone. Wayfair just passed $1 billion in revenue and shows no signs of slowing; and Amazon’s P/E ratio is up above 600. It is no wonder these investments are more attractive than companies in an industry where a 3% growth rate is viewed as a solid accomplishment. If domino shows success in the hybrid category, it could become much more valuable and serve as a template for other Conde Nast properties and publishing companies in general moving forward.

By all external factors, the experiment looks promising. Just a few months into their reboot, domino has over 165,000 Facebook fans and their Instagram posts routinely see 1,000+ likes. However, the online audience and the magazine readership are not the same. So these numbers are actually more encouraging than they seem at first blush, because — according to Jay Lester, CMO of Domino Media Group — the readership between the online and print audience only overlaps by 10%. His goal is to get more of their magazine readers online, but meanwhile, the site and the company are extending their brand to new, younger, tech-savvy readers, who are more likely to purchase online.

That said, the company is not out of the woods yet. While their user base gives them a leg up, they are facing many of the same challenges all content/commerce hybrid companies face. “When people come into the shop on domino, they behave like traditional shoppers,” Jay explained, “but converting readers to buyers has been more challenging.” It will be interesting to see how the year unfolds for this old-new startup.

Source: Forbes Business

 
 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Pakistan lodges protest with India over civilian death
Islamabad, Oct 29 (IANS) Pakistan Wednesday lodged a protest with India through diplomatic channels over alleged cross border firing that killed a 70-year-old man.
 
 
India ranked 142nd in ease of doing business
Washington, Oct 29 (IANS) India was ranked 142nd among 189 nations in ease of doing business in a new World Bank Group report, even as it found that the country set the pace for regulatory reform in South Asia in 2013-14.
 
 
Sierra Leone traditional leaders warned to contain Ebola disease
Freetown, Oct 29 (IANS) Residents in the northern region of Sierra Leone have welcomed a warning by President Ernest Bai Koroma calling on the traditional leaders of the north to contain the spread of the Ebola virus disease in their chiefdoms or risk the forfeiture of their crowns.
 
 
Filipino peacekeepers from Liberia to be quarantined
Manila, Oct 29 (IANS) Filipino peacekeepers who will return from Liberia in November because of the Ebola virus threat will be quarantined at a military camp in Tarlac province, a senior military officer said Wednesday.
 
 
 

Latest from the Network

Kim Kardashian West thanks birthday boy Bruce
Kim Kardashian West has thanked her step-father Bruce Jenner for teaching her ''so much about life''. The 34-year-old star took to her Instagram account to post a nostalgic black and white picture of the pair together...
Read more on Celebrity Balla
 
Ashton Kutcher's daughter has Twitter handle
Ashton Kutcher and Mila Kunis' daughter already has her own Twitter handle. The former 'That 70s Show' actors welcomed their first child, daughter Wyatt. into the world earlier this month and Ashton has confessed they...
Read more on Celebrity Balla
 
Mike Tyson used same 'low-life dealer' as Robin Williams
Mike Tyson has claimed he and Robin Williams used to use the same ''low-life dealer''. The retired boxer has opened up about battling depression and mental illness and admitted he used to chat with the late Hollywood...
Read more on Celebrity Balla
 
Pakistan lodges protest with India over civilian death
Islamabad, Oct 29 (IANS) Pakistan Wednesday lodged a protest with India through diplomatic channels over alleged cross border firing that killed a 70-year-old man. The civilian was killed in Rawalkot sector "due to...
Read more on Politics Balla
 
10 of a family killed in Egypt car crash
Cairo, Oct 29 (IANS) Ten members of a family were killed and 17 injured in a fatal car crash on a desert highway 80 km from here Wednesday, state media reported. The accident occurred as a private car carrying family...
Read more on Politics Balla
 
14 killed, 300 missing in Sri Lanka landslide (Roundup)
Colombo, Oct 29 (IANS) At least 14 people were killed and around 300 others are missing in a landslide in central Sri Lanka Wednesday as President Mahinda Rajapaksa directed the government to fully support rescue...
Read more on Politics Balla
 
IS executes 30 tribesmen in Iraq
Baghdad, Oct 29 (IANS) The Islamic State (IS) terrorist group executed more than 30 tribesmen in western Iraq Wednesday, as government forces continued their offensive against the extremist militants across the country...
Read more on Politics Balla
 
Michael Caine appears in Christopher Nolan films 'without reading the script'
Sir Michael Caine agrees to appear in Christopher Nolan films without reading the script. The Oscar-winning actor has appeared in six films made by Nolan - the latest of which is new sci-fi thriller 'Interstellar' - and...
Read more on Movie Balla
 
Jason Bateman to direct and star in IPO Man
Jason Bateman is to direct and star in 'IPO Man'. The new movie is based on an article in Wired magazine entitled 'Meet The Man Who Sold His Fate To Investors At $1 A Share', and will see Bateman play the lead character...
Read more on Movie Balla
 
UN General Assembly again urges US to end Cuba embargo
United Nations, Oct 29 (IANS) The UN General Assembly (UNGA) again asked the United States to lift its Eisenhower-era embargo against Cuba in a near unanimous vote Tuesday that showed the stark isolation of Washington...
Read more on Politics Balla