• by Larry Dobrow , August 25, 2003

While few consumer magazines arrive with the blare of trumpets and the release of doves - well, few non-Tina Brown magazines, anyway - there aren't many titles that can match TheSource in terms of humble origins. Founded in August 1988 as a single-sheet newsletter by Harvard undergrad Dave Mays, the title has evolved into a pop-culture behemoth.

A bible for all things hip-hop, TheSource has more street cred than just about any music title; one might argue that it's the only mass-circulated music magazine that has maintained any credibility at all. Alas, with all the television tie-ins, clothing lines, films and other ventures, sometimes it's easy to forget that The Source still publishes a magazine. And while the mag's critics point to the many brand extensions as a sign that The Source has lost its focus, vice president of corporate sales Chris White disputes that the magazine is any less vital than it has ever been.

"The magazine is part of the hip-hop culture - it doesn't just report on it," he argues. "Look at all the magazines that are trying to incorporate hip-hop into their editorial coverage. Our focus hasn't changed since day one."

While there's no doubting the reach and influence of The Source's brand, it's hard to get a good feel for its position in the marketplace. According to the Audit Bureau of Circulation, The Source's newsstand sales in the first six months of 2003 reached 333,970, trumping Vibe (181,002) and Rolling Stone (132,573) and putting the publication in the same neighborhood as Real Simple (352,901) and Fitness (333,000). But The Source lags far behind all four titles in total circulation and has dropped nearly 10% at the newsstand compared with the same period in 2002. News from the Publishers Information Bureau is better - in the first seven months of 2003, the magazine surged 5.8% in ad pages and 20.7% in ad revenue against the year-ago period - but despite a similar number of ad pages (630 for The Source, 634 for Vibe), Vibe has generated considerably more revenue from its pages in 2003 ($46.9 million versus $18.7 million).

To hear White tell it, though, there's no real rivalry - for readers or for ad dollars - between the two publications. "We offer a younger, more male reader," he offers. "They cover all urban contemporary music and we're hip-hop through and through." On the other hand, soon after a story about Vibe's 10th anniversary was posted on MediaPost.com, an email was sent to its writer asking whether a similar story might be forthcoming on The Source's 15-year milestone.

Competitive positioning aside, The Source reigns supreme as a destination for advertisers seeking to reach a young, ethnically diverse audience. The mag's average reader is male (65%-35% male/female ratio) and young (median age of 24, up from 21 a few years ago), with an average household income of around $44,000. Fifty percent of The Source's readers are African-American and 45% are white, with 18% of Latino descent. "We are the most diverse magazine out there - and not just in the music category," White says. He also hypes The Source's readers as the kind of consumer that companies are dying to reach: "They want the newest, hottest brands, whether a watch or footwear or whatever."

White's case is clearly made easier by the title's eagerness to partner with would-be advertisers. Unlike many of his peers at other publications, White freely admits that "securing ad pages is no longer the number-one priority." He points to the mag's recent pairing with Nike's Brand Jordan as an example of the type of relationship he's trying to forge with A-list marketers: "We did an event where we celebrated the release of the Jordan 18 and the release of our February 2003 issue, and Brand Jordan ran 18 consecutive ad pages with us. That's what we're after."

Not surprisingly, given the influence of hip-hop culture on the mainstream, fashion is The Source's top ad category, trailed by entertainment (music and video games have surged in the last 18 months) and packaged goods (several Proctor & Gamble brands have been present in recent issues). The Source has also become a favorite of car manufacturers like General Motors, Ford and Honda, growing its auto ad pages from a mere three in 2001 to more than 60 so far in 2003.

As for other growth categories, White points to fragrances and fashion brands like Diesel and Armani. "Those are our dream advertisers," he says. "We know they're embraced by the hip-hop generation - we have to make that connection." He's also hoping to snare luxury automakers like Cadillac, BMW and Mercedes.