Building a global networked luxury business
Eight years ago, Boat International, a magazine for the world of superyachts had just two editions in France and Germany. This has now been built into a global print, digital and events business, through a careful focus on developing excellent relationships with yacht owners; a well heeled, well travelled and highly elusive community. With just 7500 yachts over 24m and 80,000 people globally in a position to buy them, the audience is rarefied, and behaves more like a b2b than a consumer media market.
Magazines licensed in key territories; advertising sold globally
The print magazine is still an important revenue generator, although editions have now expanded into China, Russia and Brazil, plus an acquisition of Showboats International magazine in the US. The non English language editions have all migrated to a licensed basis, with a mix of locally created and shared content. Some advertising is sold locally, but the London and US team sells over half the advertising revenue in a highly global market. The marine industry is still core but there are a significant number of luxury advertisers: including top end cars, watches and jewellery.
Relationships with owners provide exclusive content in print and digital
Whilst yacht building is currently depressed, brokerage is recovering, and owners are keen to raise the profile of their yachts to boost charters and eventual sale values. BI has worked hard on its owner relationships, meaning they get exclusive access to yachts to review. The recently launched iPad edition provides expanded galleries and video content as well as a replica of the printed magazine. It's still early days, but 80% of iPad subscribers are not print subscribers. Digital ad revenue has almost doubled in the last year, and now accounts for over 10% of total revenues. A lucrative move has been setting up an inhouse digital creative agency and video production team, who shoot editorial and sponsored content to be used online and in the iPad edition.
Long term strategy of launching exclusive events for owners
Events are a key part of the business, now contributing 20% of revenues. They focus on the owner community, and started with the World Superyacht Awards in 2005, with judges drawn from the owner community. Owners now know that winning an award can dramatically grow charter revenues and resale values. BI charges for table sales and sells sponsorship to luxury and marine advertisers. It took years to establish the awards and make them profitable, as costs were high, but they have developed owner relationships and paved the way for a series of very top end regattas and rendezvous, running over 3-4 days and attracting sponsors seeking relaxed networking opportunities with the super rich, from Bugatti to Merrill Lynch. “Coffee table” book publishing is a lucrative sideline, reusing content from the magazines and attracting ad revenue as well as high cover prices.
Whole team are focused on developing owner relationships
Tony Harris, CEO, believes the real key to the success of the business is the quality of owner relationships, and all staff share the responsibility of expanding this network. When recruiting, they favour people who can network with the very rich; for example some have backgrounds in the film industry. The events play an important part in this process, allowing the BI team to develop personal relationships and continually research new ideas with their audience.
BI has also focused on developing multiple revenue streams, adding video production, brokerage listings, events, digital advertising and iPad apps to traditional circulation and print ads.
Few publishers operate in such a top end market, but the principle of identifying influencers and opinion formers and creating opportunities to build a network could be applied to many sectors. Content can be copied, but a network is harder for competitors to replicate. BI has also developed revenues from different sectors; when yacht building is slow, brokerage is more buoyant, and expanding into China, Russia and Brazil balances the European slowdown.
Tony Harris is speaking at the conference at the Specialist Media Show on 24 May 2012.
The Media Pioneer Awards recognise innovation and entrepreneurial achievement in specialist consumer and B2B markets. Winners are announced at the Specialist Media Show on 24 May 2012. We’re delighted to welcome Audience Media as sponsor for the 2012 Media Pioneer Awards. Audience Media provide a publishing solution with a single CMS to publish to web, print and tablet plus subscription management.
