• by Joe Mandese  @mp_joemandese, October 10, 2005

Big over-the-counter drug brand Aleve is known for its pain-relieving effects, but its negotiations for 2006 magazine advertising deals are proving to be a headache for some editors and publishers. In order to be considered for a piece of its multimillion advertising budget, the Bayer HealthCare brand is demanding that magazines guarantee to place Aleve in some "good news" - literally.

"They have told every magazine they will not advertise unless that magazine comes up with content - a page of edit, or a column - that is explicitly branded as 'good news'," the publisher of a major national magazine tells MediaDailyNews, adding, "We've rejected it. We will not participate in the RFP."

By RFP, the publisher was referring to a request for proposal, the first step in a process many advertisers and agencies use to negotiate calendar year deals with consumer magazines. The RFPs set the terms and conditions that the marketer is seeking from magazines, including ad rates, the number of pages, how they are positioned and what editorial content they may - or may not - be adjacent to, and value-added marketing elements they may be looking for, and, increasingly, requests for branded content.

Branded content, which has become rampant in the television business, is growing rapidly in print media - both magazines and newspapers - but the aggressiveness of marketers such as Bayer is surprising even many veteran publishers and agency executives who say it signals a fundamental shift in the relationship between advertising and editorial content, as well as the traditional lines separating the so-called "church and state" of editorial and advertising departments.

A Bayer spokeswoman declined to comment other than to confirm the "good news" theme was part of an advertising and marketing campaign Aleve has begun running. "We are running 'good news' advertising at this time," said Bayer spokeswoman Trish McKernan. "It's going to be a build."

Executives at Aleve's media agency Initiative Media also would not comment about their negotiations with magazine publishers, but executives familiar with the requests say it represents a new aggressiveness on the part of marketers and agencies to extract concessions that portray their brands in a positive light within their editorial content.

The problem, says the publisher who rejected the Aleve request, is that marketers and agencies often don't know what they want in their branded content requests and are simply fishing to see what they can get out of magazines, which are operating in an increasingly competitive environment, where some publishers apparently are giving into such requests.

In fact, branded content has always been a part of the fabric of some magazines. Publications in the fashion industry or the entertainment field historically have cut implicit and occasionally explicit deals to portray products, branded or personalities associated with brands in prominent editorial placements. Recently, a swath of shopping oriented publications ranging from Lucky to Cargo have blurred the lines further, creating environments that provide little distinction between products and content.

That's putting pressure on mainstream publications, especially news, or general interest magazines that are struggling to maintain their editorial autonomy in the face of immense economic pressure.

Stamford, CT-based media economist and consulting firm PQ Media estimates that product placement in magazines will grow 17.5 percent this year to $160.9 million. While that's only a fraction of the $16 billion magazine advertising business, it is growing fast., especially "paid" product placements, which are branded content mentions that are made on the basis of explicit cash payments vs. "in-kind" or barter arrangements. In 2005, PQ projects $15.6 million worth of magazine product placement will have been paid for explicitly.

Based on the aggressiveness of magazine advertising negotiations for 2006, that number could jump considerably next year, say print media buyers contacted by MediaDailyNews.

"If they don't cooperate it's going to kill the magazine industry," says one top print buyer currently involved in branded content negotiations for 2006. "If they don't change the ASME guidelines they won't be able to compete with other media."

By ASME guidelines, the buyer was referring to the American Society of Magazine editors, which has been fighting to hold the line on branded content, despite the encroachment into other media, especially television. But it is the rapid rise of branded deals in the other media that the print buyer says will force magazines to follow suit, "otherwise ad budgets will leave the magazine industry."

While magazine editors have sought to maintain a strict line separating editorial content and branded mentions, the buyer says that position contradicts what publishers have been saying about the sophistication of magazine readers: "They're always telling us that readers are an upscale, intelligent audience. People can tell the difference with branded entertainment on TV, but they can't tell the difference in a magazine? That's crazy."