Magazines make up lost ground in the United States, Part II.Editor's Note Editor's Note (foaled in 1993 in Kentucky) is an American thoroughbred Stallion racehorse. He was sired by 1992 U.S. Champion 2 YO Colt Forty Niner, who in turn was a son of Champion sire Mr. Prospector and out of the mare, Beware Of The Cat. Trained by D. : This article is the second of two articles exploring magazine publishing tends. The first article appeared in the May 2005 issue: Go to www.tappi.org, click on "Publications" and then "Solutions!" Choose "Archived Issues" and click on May 2005. The U.S. advertising recovery of recent months, along with mostly positive economic news, has fueled magazine publishers with near-term hope. In 2004, U.S. consumer magazine ad pages, tracked by the Publishers Information Bureau (PIB See NIST binary. ), grew 3.8% while ad revenues spiked spike 1 n. 1. a. A long, thick, sharp-pointed piece of wood or metal. b. A heavy nail. 2. A spikelike part or projection, as: a. up 11.1% to US$ 21.4 billion, marking the highest percentage page and revenue increases since 2000. The improvement in year-over-year comparisons mostly results from a poor 2003 advertising year as well as increases in cost per ad page. Considering that publishers raise ad rates about 7%/yr on average, the ad revenue performance is encouraging. However, the 3.8% ad page increase is disappointing given the strong advertising environment in 2004 and the weak base year used for comparison. Advertising spending is linked to corporate profits and there is typically a lag between the rise in profits and increases in company marketing and advertising budgets. Also, ad dollars reflect not only ad spending, but also increases in advertising rates. The problem for magazines is convincing advertisers to spend more for ad pages even though circulation has declined somewhat in recent years. Business publishers are mostly wary of an economic slump Slump A temporary fall in performance, often describing consistently falling security prices for several weeks or months. and continued job losses that would eat away at their advertising and circulation bases. Based on a Jaakko Poyry Consulting survey of end users, there are several key opportunities and threats: GROWTH OPPORTUNITIES Consumer Magazines * Expand ad revenues and pages as economy grows * More new niche titles, e.g., catalog-like shopping titles * Cross-platform ads and media tie-ins * Win the newsstand battle; improve distribution * Consolidation to lower competition for ads * Increase subscription rates * Subscription Web sites equal to printed titles * Custom publishing Business Publications * Economic expansion and increased ad sales * Online publishing as a base for ads * B-2-B community building to develop more ad value for readers * Custom publishing * Supplemental revenue streams, e.g., conferences * Niche titles for emerging industries [GRAPHIC OMITTED] * Market research to advertisers THREATS TO GROWTH Consumer Magazines * Large advertisers shifting budgets to another media * Lack of sustained advertising recovery * Advertiser ad·ver·tise v. ad·ver·tised, ad·ver·tis·ing, ad·ver·tis·es v.tr. 1. To make public announcement of, especially to proclaim the qualities or advantages of (a product or business) so as to increase demands that magazines prove productivity of ads * Higher paper, printing, and distribution costs distribution costs distribute npl → Vertriebskosten pl * Postage POSTAGE. The money charged by law for carrying letters, packets and documents by mail. By act of congress of March 3, 1851, Minot's Statute at Large, U. S. 587, it is enacted as follows: 2.-Sec. 1. rates increases in 2006 and 2007 * Competition from other media channels for advertising * Newsstand inefficiency: self-check-out and scan-based systems reduces impulse buying impulse buying n → compra impulsiva and tends to undercount un·der·count tr.v. un·der·count·ed, un·der·count·ing, un·der·counts To record fewer than the actual number of (persons in a census, for example). sales; rise of ware-house shopping cuts trips to grocery store; too many titles; * Circulation scandals hurts confidence of advertisers * Declining subscriptions and low-priced subscriptions * Free Web sites with compelling information Business Publications * Falling economy, terrorist attacks, job layoffs * Fewer ads and reduced ad budgets * Loss of ad dollars to online and other media * Consolidation of advertisers and industries * Loss of circulation due to layoffs and consolidation * Higher paper, postal and printing costs Overall magazine paper consumption is forecast to increase, which is good news for publication paper producers. Corporate profits will contribute to grow in 2005, along with new magazine launches and the steady expansion of the economy in the long term. Note: This article is part of a series by Jaakko Poyry Consulting, Tarrytown, New York Tarrytown is a village in Westchester County, New York, United States. The population was 11,090 at the 2000 census. The Village of Tarrytown is located in the northwest part of the Town of Greenburgh, New York. , USA, a provider of marketing and consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" . Contact Ms. Soile Kilpi by email at soile.kilpi@poyryusa.com, or by phone at +1 914 332-4000. JAAKKO POYRY CONSULTING |
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