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Upscale Magazines Stomping on Familiar Turf

With the average value price of luxury homes in San Diego County climbing to nearly $2 million, publishers of upscale magazines are setting up shop here in hopes of capitalizing on the more affluent residents in the region.

Targeting the lifestyles of San Diego’s wealthy residents, Riviera San Diego, a publication of Chicago-based magazine publishing company Modern Luxury Magazine, LLC, became the newest entry into the luxury magazine industry when the publication debuted in September.

The magazine, which publishes every other month, comes a year after the inception of 944 magazine, a regional luxury magazine focusing on the arts, lifestyles and cultures of young business professionals and socialites in San Diego.

The monthly glossy publication launched in November 2003 and averages more than 100 pages per issue.

Kedric Francis, the editor of Riviera San Diego, said San Diego is a natural fit for upscale regional magazines because of the wealthy residents who choose to live here.

“Modern Luxury’s business plan has been to have a group of luxury city magazines across the country in cities that make sense,” said Francis, who helped launched Riviera Orange County in 2001. “Where there is a certain level of sophistication, a certain level of affluence, and San Diego definitely fits both of those.”

Modern Luxury publishes five regional magazines nationwide and hopes to increase the number to 15 in the next year, Francis said.

Riviera San Diego’s entry here faces a media market dominated by San Diego Magazine, which covers news, politics, arts and entertainment countywide and maintains a subscription base of more than 60,000.

Ranch & Coast magazine, a regional luxury magazine targeting the upscale residents in Rancho Santa Fe and La Jolla, has its stronghold in North County.


Way Of Doing Business

Establishing a magazine in a market with a dominant publication isn’t all that unusual in this industry, Francis said.

“For us, it is part of our business plan,” Francis said. “Pretty much every city has an established city magazine, and many are fairly similar (to each other). We are different in style and business plan.”

Focusing on the social scene, fashion and nightlife of San Diego, Riviera, a glossy publication that had 208 pages in its debut magazine, targets extremely wealthy residents, focusing on readers with a median net worth of more than $1.7 million.

San Diego Magazine targets readers with an average net worth of $1.1 million, 38 percent of its subscribers.

Riviera is a free publication offered at high-end hotels, salons and boutiques and mailed out to nearly 25,000 homes in tony communities such as La Jolla, Rancho Santa Fe and Downtown. Luxury magazines are growing in popularity, Francis said.

“Our advertisers want to reach a certain demographic, and we target that demographic and deliver it,” Francis said. “San Diego Magazine and all city magazines are much more general magazines and they need to appeal to a wider audience.”

Riviera’s editorial content is a hybrid of national and local content, Francis said.

But the two magazines are alike in that they target readers who live in houses that are valued at more than $600,000.

“San Diego is an affluent area and I think everyone wants a piece of the pie,” said Kevin Leap, San Diego Magazine’s publisher.

In La Jolla alone, the average sale price of a home topped $2 million in 2004 — up 27 percent from the previous year, according to the La Jolla Real Estate Brokers Association.

Riviera, which is scheduled to publish monthly beginning in 2006, is packed with local and regional advertisers, featuring high-end jewelers, furniture manufacturers and luxury real estate similar to San Diego Magazine’s ad line.

Local advertisers include jeweler Leo Hamel & Co.; furniture dealer Circa A.D.; and Cush Automotive Group. Neiman Marcus, Saks Fifth Avenue and Louis Vuitton are among the magazine’s national clients.

“They might take some advertising away, but so far they haven’t,” Leap said. “The people who receive Riviera have not selected to receive Riviera. The people who receive S.D. Magazine pay for it. Riviera is mostly fashion and social. San Diego Magazine is San Diego from the cover to the last page.”


Changes In Store

Changes are on the horizon for San Diego Magazine as the staff looks to expand its editorial coverage and launch a second magazine by the end of 2005, Leap said.

“One thing I have seen is that a lot of people come in that are outsiders. They try to capitalize on that (affluency), and that is really hard for an outsider to do.”

As the number of luxury magazines in San Diego climbs Riviera now brings the number to four — upscale advertisers have more options, possibly stretching their budgets.

Carly Harrill, the editor of 944 magazine, which is published by Phoenix-based 944 Media Inc., said an increase in luxury regional magazines means more exposure for advertisers.

“It would be beneficial for people to be in our magazine, just as it would be for them to be in Riviera,” Harrill said. “Whether you can afford these things or not, it’s something you can always desire. Even if you can’t afford some of these things (advertised or written about), you can appreciate them.”

With more luxury magazines in the market, competition among the magazines will most likely produce better content for the reader, Harrill said.

“We’ve already been trying to acquire the luxury market in our magazine,” Harrill said. “Any competition makes you work harder. I think it is a positive thing.”

Like Riviera, 944, which distributes 25,000 copies, is a free publication found at specific locations throughout San Diego, such as hotels, restaurants and bars.

“San Diego is such a great city. It’s growing and it has got so much culture with music and art,” Harrill said. “And, it’s a beach town, but at the same time it is so rich. It is a great place to conquer.”

In April, 944 magazine has plans to launch a regional magazine in Las Vegas.

Darlene DeJohnette, a senior media strategist for San Diego-based advertising agency Di Zinno Thompson, said luxury magazines are popping up in regions throughout the country because they meet specific needs for advertisers.

“People are trying to reach a very specific market and they (luxury magazines) are very targeted to that market,” DeJohnette said. “Therefore, (there is) very low out-of-pocket costs for advertisers.”

Although costs might be less than a broader publication such as San Diego Magazine, advertisers might have to become more selective with their budgets, DeJohnette said.

“You are going to pick and choose and maybe you’ll switch off from one publication to the other,” she said.

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