As a traditional media company, Time Inc. may be better poised to capture those budgets, and the company also fares well capturing “gross audience impressions” across print and digital. Ripp stated the monthly gross brand audience for Time Inc. was 367 million, “more than Meredith and Condé Nast combined.”
The Time Inc. network will offer opportunities for branding initiatives as well as programmatic. With salespeople selling across all Time properties, the company can create custom media programs that run across the entire network, an area that apparently has already generated marketer interest.
While Time Inc. emphasized its digital initiatives to investors, it still represents just a fraction of Time Inc.’s revenues. Digital contributes 15% to advertising revenues: $65 million to print’s $363 million.
As advertisers move budgets from print to digital, Time Inc. will suffer from the lower rates in the digital environments. Ripp attributed some declines to food, beauty and automotive advertisers shifting budgets to digital opportunities.
To monetize its growing digital audience, Time Inc. will also test paywalls across all sites in 2015.
Currently, 25% of subscriptions are digital. While the paywalls will generally be on a site-by-site basis, Time Inc. expressed interest in Next Issue Media, a tech startup that lets users access multiple magazine subscriptions from a single app.
“We want to make sure we’re getting paid for high-quality content we’re producing,” Ripp said. The company will have to balance charging for its content against another goal Ripp stated: creating additional volume with lower-cost, socially optimized content suited to the digital environment.