The magazine creates a relationship with two sets of customers – the advertisers and the readers, and it also has to ensure that the presence of advertising adds value to its readers.

Customers – Who They Are
There are two sets of customers: advertisers and readers, that are connected with each other.

Engagement – Value Creation Proposition
Taking each group in turn: the magazine allows the advertisers to connect with the magazine’s readers by placing advertisements where readers will see them; and for readers the magazine provides editorial and other curated content of interest to the readers, that includes the advertisements and the connections that the advertisers bring.

Learn more about the Multi-sided Business Model

You identify two or more different customer groups; and after interacting with each you design and deliver your goods or services in a manner that connects the two parties.

Delivery –  Value Chain
The principal inputs to a magazine are the editorial content produced by the magazine staff or their subcontractors, and the advertising copy that is produced by the advertisers. Note, in this case of a physically produced magazine, the opportunities for tailoring the linkage between advertising and readers is limited.

Monetization – Value Capture
The real value of a multi-sided business model for a magazine is the opportunity to gain an additional source of revenues (from advertisers) beyond the readers subscription/purchase price; and the opportunity to use some of these additional revenues to subsidize the price that readers pay, thereby increasing the reach of the magazine and its content.