There are several different custom business models employed by custom publishers and custom content providers. The “classic” model is “Marketer pays publisher to produce content bearing the company’s branding.” And this is the model responsible for the public’s misconstrued notion that advertising and custom do not or can not mix.

Over the past few weeks, I’ve been introduced to a handful of other models that negate that hypothesis. These models blur the lines not only between traditional advertising and custom content, but also between consumer and customer publications—the latter being an excellent development given that custom content providers’ goal is to create products that “blend” in with the media mix.

Three Different Models:

Targeted Content Developed for Advertisers

Case in point: Idearc Media. Idearc spun from Verizon in late 2006. Their model is based almost entirely around advertisements. Essentially, Idearc provides local advertisers with the ability to buy into a “national-quality” publication with relevant edit. For instance, they produce a quarterly custom magazine which offers home improvement solutions to readers. (This magazine is currently available in 18 markets, but will expand into almost 50 markets in 2007) Idearc’s sales teams then target local advertisers in these markets and provide them a vehicle targeted specifically to readers in their niche.

Advertisements As a Means of Covering Costs

Case in point: Journal Communications. Journal Communications produces a number of custom publications, all based upon different models. While some of these pubs follow the classic model mentioned above, others are ones they bid for and then take responsibility for filling with advertisements. Once Journal covers their production costs, the rest is "incremental revenue,” says Ray Langen, Executive Vice President. Of course, these publications are still considered custom as they are created specifically for an entity and targeted toward the needs of its database of customers.

“Classic” Plus Advertisements

Case in point: Airline Publications. There are a handful of different companies who produce these. American Airlines has created its own custom publishing company (AAP Publishing) based initially on the production of their notable publication, American Way. Pace Communications produces publications for Delta, United and, now, Southwest Airlines; The Pohly Company produces Continental for Continental Airlines; and Spafax produces publications for Aeroplan, Air Canada and LAN. The model followed here is the classic one plus advertisements, which serve to supplement the respective airlines’ marketing budgets for the publication. This model is also utilized by publications such as Lexus (produced by Story Worldwide) and others.

While there are several other models out there, this should at least serve as a preview of the vast array of possibilities that exist in custom publications and the world of custom media as a whole. To discuss the part played by advertising in all custom content (i.e., product placement within new media and targeted content, and so on) would reveal that advertising is not “dead,” so to speak—it has simply assumed a new and exciting identity.