Big Bucks are Name of the Game in Magazine Launch

The Case

In early1999, Computec Media, a leading publisher of European video and PC gaming magazines, laid plans to expand its presence in the U.S. with the launch of two new consumer
magazines. Its hypothesis: video games had moved beyond the hard-core geek segment and into the mainstream. To confirm this suspicion, Computec commissioned a hefty research
study to surmise the market, then staged an exclusive powwow event to hinge industry support from potential advertisers and media buyers. The integrated marcom campaign that
followed catapulted two new magazine titles - incite PC Gaming and incite Video Gaming - into pole position.

Strategy, Level One

In preparation for the big launch, Computec chose several agile partners, including the respected research firm Roper Starch, and the hip San Francisco-based PR firm Red
Whistle Communications, whose president, Lee Caraher, was a former director of PR for Sega. A heavyweight $100,000 investment in a Roper market survey confirmed that the consumer
gaming industry had expanded well beyond pre-pubescent boys, with 80 percent of male gamers falling into the much-coveted 16-34 age demographic. Other findings proved the gaming
market had extended to 34 million U.S. households and constituted a $7 billion market (generating more revenue than box office sales in 1998). "We also found that 86 percent of
people who play games had never read any hard-core gaming magazines, because they didn't think they were written for them," says Torsten Opperman, CEO of Computec USA.

Strategy, Level Two

In July, Computec and Red Whistle staged an all-expenses paid "meeting of the minds" (by invitation only) in Monterey, Calif., for leaders in the interactive entertainment
industry. The Charge! Conference, as it was known, featured heavy-hitting speakers from Microsoft, LucasArts Entertainment, Hasbro Interactive, Sega, Intel and McCann-Erickson.
Not only did the event draw 300 industry VIPs, it sparked interest from CBS, Fox, the San Francisco Chronicle and a handful of American and European trade publications.
Computec leveraged the event as a platform to share key findings from the Roper study, and as a launching pad for the incite brand. A series of newswire announcements were
dispatched from the conference to announce breaking news. Price tag on the swank-fest: a cool million.

Strategy, Level Three

incite PC Gaming and incite Video Gaming hit newsstands on Oct. 26, bolstered by an ad campaign with placements in print, TV, online and outdoor media (including
kiosks, billboards and bus backs). "Radio was the only thing we didn't buy," says Sharon Lo, director of marketing for Computec. "We went with PR for that."

With counsel from Red Whistle, Computec developed a radio news release and launched a nationwide holiday radio tour, pitching its magazine editors as authorities on the gaming
industry. "We positioned them to talk about hot [game] picks for the season and put them on moderated panels," says Opperman. "PR was an important strategy because [magazines]
are different from other consumer goods products. What we do is basically a piece of paper. The product is really the editors."

Incite editors ultimately scored airtime on 12 stations in San Francisco, Los Angeles, New York, Chicago and Seattle, reaching a total of 7.5 million listeners. "Our senior
editor, who is a female, was a great angle for us because there was a lot of natural curiosity about her as a girl gamer," Lo observes. News/Broadcast Network estimated the value
of the airtime at $28,490 ($5.53 per minute) using advertising equivalency measures.

High Scores

Computec's launch campaign lasted six months (last July through December) and beat its goal. Two weeks ago, the publisher announced that both new titles had exceeded their
guaranteed circulation rate bases (incite PC Gaming by 8,000 and incite Video Gaming by 148,000). Lo says the company plans to continue its PR radio push in 2000,
and has begun pitching TV gigs. An upcoming A&E segment on the history of gaming will feature incite Video Gaming Editor-in-Chief Greg Rau. Other plugs are slotted for
the LA Daily News, Electric Playground and Home Office Computing.

(Red Whistle, 415/616-6143; Computech, 415/865-5342)

Radio Waves

On the AM band, the top three formats are news/talk, country and adult standards. On the FM band, the top three formats are country, adult contemporary and news/talk.

Source: News/Broadcast Network, Inc.

Red Whistle: Loud and Clear

History: Formed Jan. 31 as a vertical market affiliate of The Weber
Group, San Francisco. Named for the "clearest, most concise way to communicate"...and
for the color of president Lee McEnany Caraher's hair.

1999 Billings (Weber): $3 million

Clients: Della.com, peets.com, Geoworks, Zero-Knowledge, Flyswat, AVEO,
Greenlight.com

Employees: 25

Employees who play video games: 25

Staff on the Computec account: 4