Corner Office Interview: Growing Paid Circulation: A Foreign Concept?
How much revenue is generated by ad sales?
Kellogg: 25 percent to 35 percent.
Where are ad sales growing most significantly?
Kellogg: We are seeing substantial growth in corporate advertising, especially in the energy and financial categories, and in high-end international travel, which … we have been focusing on recently. We are also seeing continued strength in the publishing and educational market, including graduate schools.
What percent of your ad revenue is currently print-driven versus digitally driven?
Kellogg: Print is still predominant—about 90 percent of the total. Online is building, especially through our weekly e-newsletters that now go to over 80,000 opt-in readers.
What role does your website play in your overall business strategy?
Kellogg: ForeignAffairs.com, which we relaunched a year ago, is central to our strategy for audience development, conversions to print subscriptions, subscriber account management and advertising.
What content strategies are working best for you online?
Kellogg: We currently use a modified pay-wall model, with daily … Web-only content available for free, but reserving most print content for paid subscribers. We open up a handful of pieces from each new issue that we believe will generate the most traffic. We … also open up selected, older print content if it becomes newly relevant, or if there is a Web-only article that refers to it. Access to all the print content requires registration, because one of our goals is to develop a pool of registered users who we can then convert to paid subscribers. This model is working well, and we will be testing moving Web-only content behind the registration wall, too.
Have you seen this impact your subscription or newsstand sales? If so, how?
Kellogg: The impact on subscription sales has been positive, because of the continued strong conversion numbers on the site. It's harder to gauge the impact on newsstand sales, but we believe the model also supports those, because it allows visitors to sample FA without removing the incentive to buy.