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Conde Nast

Advertisers, Publishers Await iPad Launch

"Some of the things you can do are just mind blowing," says Steve Pacheco, FedEx's director of advertising. "You are taking something that used to be flat on a page and making it interactive and have it jump off the page." This is just one glowing quote, among several, in the Wall Street Journal's "Magazines Use the iPad as Their New Barker". Yesterday, I wrote about how the iPad has the opportunity to transform traditional print and reading; today's WSJ talks about how the iPad has the potential to transform the advertisements (and therefore the revenues) for print publications like Conde Nast, Hearst and Time Inc. The model seems appealing to:

The Wall Street Journal and the New York Times are working with test iPads, according to people familiar with the matter. Six advertisers, including Coca-Cola and FedEx, have agreed to advertise with the Journal, and a four-month ad package costs $400,000, according to these people. Coke and FedEx declined to comment on terms. The Journal plans to charge subscribers $17.99 a month for iPad subscriptions, according to a person familiar with the matter.

Ultimately it comes down to consumer appetite and distribution, but the cycle has the potential to create greater value from already-produced content:

- publishers can deliver content electronically ... and derive direct revenues from download - advertisers, who can create more compelling, engaging ads - and therefore the publishers can draw greater ad values (of course sell through is the major issue)

Whether or not the iPad transforms print, it has captured the attention and imagination of publishers and advertisers alike - and that is sparking innovation... which alone is valuable and exciting.