Does Digital Delivery Save Costs

first_imgPaper, printing, and postage costs for delivering a print copy of a magazine average about $1 per unit. Delivering that same content digitally can easily result in a 75 percent cost saving—as low as 15 cents a unit, depending on the size of the issue, the number of pages, and supplier negotiations. Everyone is trying to squeeze a penny these days, and instituting a digital edition or increasing the number of digital readers can result in significant cash left in the publisher’s pocket.A year ago, EH Publishing launched a digital edition of CE Pro, a controlled-circulation b-to-b publication with 50,000 subscribers. Today, the number of digital-only subscribers is approaching 10 percent of the magazine’s of the file. EH’s cost to produce one print magazine averages about $1; it’s cost for a digital send, about 15 cents. “Every new digital subscriber saves money for us,” says Elizabeth Crews, circulation director. And she has done the math:$1.00 per print copy times 5,000 subscribers equals $5,000 per issue or $60,000 per year.15 cents per digital copy times 5,000 subscribers equals $750 per issue or $9,000 per year.  In addition, digital requires zero physical inventory, so overprinting and waste are eliminated. The publisher that ordinarily has a 30 percent newsstand sell-through rate for its print magazine doesn’t have to swallow or recycle that 70 percent of unsold paper.While certainly agreeing that digital distribution is significantly less expensive than paper distribution, Ziff Davis Media’s Steve Sutton reminds publishers that they must always evaluate their costs (and possible cost-savings) in relation to their overall profitability picture—“especially in terms of the advertising support that the magazine can expect. That may make a difference in the level [of digital involvement] you want to support.”The real consideration should be the strategic advantage of publishing a digital edition, according to Buser. “In addition to saving costs we’re trying to help publishers understand that making digital a part of their strategy can increase their circulation, expand their circulation, and increase revenue—important benefits as we all deal with the current economic crisis.”That’s the way ITEM Publications’ Graham Kilshaw has always approached digital delivery. “I don’t look at digital as an exercise in saving money on print,” he says. “I see it as a different product and as an exercise in high-margin publishing. If we can achieve a 35 percent margin on print, we can achieve a 60-70 percent margin on digital publications.”BACK TO MAIN PAGE “Digital saves more than $50,000 per year for CE Pro alone,” Crews says. “That’s huge!” The potential savings would be even greater for magazines whose cost of delivering print and/or the number of subscribers are higher. In general, the total cost associated with delivering a digital edition usually amounts to no more than $1,000 to $1,500 per issue and often less, depending on the size of the publication and publisher’s preferences. The pricing models are usually based on frequency, the number of pages, and extra features rather than on the number of copies served. “The break-even point for digital has always been pretty low,” says Texterity’s Cimarron Buser. “Delivering 1,000 digital copies is usually more than enough to pay for our services.”last_img read more

Surge in Mobile Banking Creates a Security Gap Thats a Wild West

first_imgAugust 13, 2013 Growing a business sometimes requires thinking outside the box. Register Now » Think about it. Do you know anyone who writes checks anymore?Online banking has become ubiquitous as more people turn to their smartphones to carry out daily tasks. Still, while it may be more efficient, using your phone to make financial transactions could raise security risks.Portland, Ore.-based online fraud detection company iovation tracked online financial transactions across 1.5 billion devices in July and found that 20 percent were done through a mobile device or tablet. That’s an increase over the 18 percent of online financial transactions done on a mobile device between January and July of this year, and 11 percent last year, according to a statement the company released today.Related: Lawmakers Push for ‘Kill Switch’ to Deter Smartphone TheftPart of the reason more customers are using mobile apps to do their banking is that financial institutions are innovating aggressively in the space, trying to appeal to customers that want to do everything on the go, says Max Anhoury, iovation’s vice president of Global Sales, in a statement.Customers are becoming increasingly comfortable with their personal histories living on their mobile devices. People are even using their smartphones to help them get pregnant these days. Really.Related: PayPal Co-Founder’s New Baby: An App to Help You Get PregnantThe problem is that security procedures aren’t keeping pace with app innovation, leaving a window for fraud.”With this rapid innovation, we found that financial institutions are unable to integrate security protocols as quickly as they would like since the ‘old’ security measures may not be well suited for the ‘new’ mobile world,” says Anhoury. “This means that mobile transactions can be like the Wild West for fraudsters.”For entrepreneurs considering launching a mobile app, it’s important to be hyper-vigilant about the security of your users. Throughout your development process, push out security updates to users on a regular basis. Test often for holes in your security, and if you do have a security breach, be honest about it. Transparency wins customer’s favor in the end.Related: Mobile App Basics: 3 Ways to Make User Security a Priority center_img Free Webinar | Sept. 9: The Entrepreneur’s Playbook for Going Global 2 min readlast_img read more