The private equity firm Veronis Suhler Stevenson, specializing in the media, communications and information industries, recently released their annual report on media spending. According to the report, total communications spending is projected to grow 5.4 percent in 2008 to $924 billion. Outsourced custom publishing was one of the eight media segments that exhibited double-digit growth from 2002-2007. Along with word-of mouth marketing, pure-play Internet and mobile services, branded entertainment, out-of-home media, professional and business information services, VSS predicts that custom publishing will continue its growth momentum over the next five years, resulting in a solid decade of double-digit gains.

I’ve posted a number of times this year about how, in an effort to engage readers and meet the needs of advertisers, some magazines are using incentives to drive their readers to action—specifically to text. As a reward for this behavior, readers receive special offers, the chance to enter sweepstakes or advance notice on hot products.

In a new twist on this concept, SmartMoney’s Sept. 16 issue will drive readers to text, but with a different motivation. Instead of tempting readers with the lure of special samples or deals, the magazine will send readers premium content in exchange for their texts. Within its pullout section on retirement, SmartMoney will include a call-out box with a texting code and the phrase “retire.” Once readers send in their text messages, they will receive a PDF article about retirement.

Obviously this advertising package is appealing to its sponsor, Genworth Financial, because the concept integrates different media and is measurable. And it allows Genworth to position themselves as a go-to resource for SmartMoney readers when it comes to retirement. While I admit the integration of media is cool, the element of this program that I find most intriguing is the promised content. Will readers send in texts? Yes, if they think the content will be valuable, but readers are savvy: They won’t respond to the call to action if it looks or sounds like advertising.

We at Hammock consider ourselves reader advocates, so we’re always cognizant of reader behavior in the media we create. If an advertiser, association or organization creates content for their audience that is compelling rather than self-serving, and if it’s written, designed and distributed with their target audience’s needs in mind, it’s much more likely to be effective, engaging and deliver ROI.

I recently read about an interesting experiment: For the next three months the magazine Good is allowing readers to name their own subscription price. Good is not the first to experiment with the idea. For one month in late 2007, Paste allowed readers to name their subscription price, a program that resulted in 28,000 new paid subscribers. For a consumer magazine like Paste that carries advertising, a circulation increase of 28,000 should translate to a nice chunk of new advertising revenue.

Over the last few years as auditing agencies have enforced stricter requirements on publishers regarding circulation, some publishers have been forced to reduce their rate bases to pass their audits. Some magazines then find themselves unable to sell as big of an audience to advertisers, so they must find new ways to boost circulation. This partially explains why an annual subscription to a magazine can sometimes cost less than a single copy of an issue on newsstands. (Mr. Magazine Samir Husni shares his take on single copy vs. subscription sales on his blog.)

Before you consider instituting this kind of program with your magazine, consider: What are the risks of allowing new readers to tell you what your magazine is worth to them? Will these readers be more or less engaged with your magazine? Will readers who pay the average $20 subscription price feel more vested in the magazine than those who pay $1, or will you end up losing money on them? Each publication’s situation, content, readership and financial realities are unique, but for some magazines, letting their readers rate their worth could be an experiment that could help give those publications the circulation bump they sorely need.

1. Create an organizational blog—and learn from the comments it generates. Whole Foods employees announce new products and company news, offer tips and send topical alerts through text, video and podcasts on the Whole Story blog. The blog accepts comments from customers, giving them an opportunity to share their opinions and respond to Whole Foods employees.

If your association doesn’t yet have a blog, start one now. You can set up an executive director-only blog, or you can create an organization-wide blog that allows different employees to contribute posts. Although it might be intimidating at first to accept comments, this function will create more transparency for your blog and will encourage member participation.

2. Foster interaction through compelling content.
   The Whole Foods site is packed with opportunities for visitors to share and learn from one another. Customers can rank and search for recipes, watch cooking demonstrations, listen to podcasts or chat on a forum. Whatever it is that makes customers passionate about Whole Foods, the site sets up an easy way for an individual to tap into that passion.

One of the first steps to building such a dynamic community online is for your association to have quality content on your site. The content needs to provide information and resources that offers a real value to your members, and it needs to be updated often. We also recommend using different media, including video, photos and podcasts, to share your content. By offering a range of forms, you tell your story more effectively and appeal to different audiences.

3. Be national and local.
   The Whole Foods site not only hosts a national site to connect customers across the country, but it also successfully taps into the unique local community. Each store has its own site with information about special events and ways customers can get involved.

If your association has state or regional chapters of groups, consider creating a section of your site for each of these communities. Following this strategy will allow local groups of members to gather and grow.

4. Be socially active.
   To connect with customers beyond its site, Whole Foods plays an active role on social networking sites like Twitter and Facebook.

   If your association is just beginning to explore social networking tools, it’s ok to start gradually. At first, try Facebook and LinkedIn. Once you feel comfortable with those two tools, you can expand the range of your social media to best accomplish the goals for your association community.

I respect their decision, trusting that they know what is best for their content, audience and budget, but I disagree with the implication that you can’t create something “really beautiful” with a digital publication. The decision to choose a print, digital or a combination for distribution of your content should be considered on a case-by-case basis. Readers interact with digital publications differently than print publications, and so those behaviors must be weighed when determining what is right for your audience. Print publications can certainly be beautiful, but don’t discriminate against digital ones—they can be beautiful too.