2. Overview of current publishing sector
• Power of Three – print, online and face-to-face
• Three pillars are: consumer, customer and business
media
• £26.7bn sector
• Approximately 1,100 publishers in the UK
• Ad revenue increases forecasted for at least next 12
years
• Average publisher has sales of £133,010,000 (for
2005/2006)
• Average publisher has 940 employees
3. Magazine & Business Media – the £26.7bn
sector
Magazine Media Business Media
£m
Customer †
£788m
Broadcasting
£289m Data
Consumer
812 Market research
Advertising Sales* publishing
2,085
Copy Sales*
100
£275m
Online £485m
40
Face-2-Face
Licensing,
Merchandising 60
£3,097m Online
& Other
services
products/
Business £2,788m
Print Printed
Advertising sales* 1,016
products/services Exhibitions/
150
Copy sales events
280
Directories 850 Business £8,872m £2,820m
Online magazine media
950 form part of the
(incl. databases) Marketing
wider Business
Face-2-Face services
Media industry,
(incl. exhibitions, valued at
conferences, events &
100
£22.8bn
Non specific £3,317m
£3,346m
training) sectors
Other £4,001m
† Mintel 2006
* AA TOTAL £7.2bn 22.8bn
Other figures – PPA
2007 estimates
GRAND TOTAL = £26.7bn Source for Business Media data: GfK NOP Dec 2007
10. Sales of magazines by the newstrade and
subscriptions
Subscription 14%
Retail Sales 86%
Source: PPA,
2007
11. Other Revenue Streams
• Exhibitions
• Directories
• Database marketing
• Direct mail
• Electronic publishing
• Brand extensions
12. Digital Publishing
• Not seen as a threat to traditional print, yet can
complement and build on the existing “brand”
• Revenue generation is averaging 17 per cent of
overall publisher revenues
• Combined together, online and print create a multi-
platform community to engage a varied readership
Source: Deloitte/AOP, 2006
• Audiences trust the content brand over and above
the medium by which it is delivered Source: AOP Dual Consumption Survey, 2007
13. Magazines drive online
•Offline advertising drives online search
and purchase
•Magazine and TV advertising dominate
the driving of search
•Magazine advertising is the most cost
efficient offline driver to online search
Magazines in the
•Magazine advertising is as strong as TV driving seat
for driving online purchase
14. Magazines drive online (Cont.)
Searching by Category
TV Ads Magazine Ads Newspaper Ads Radio Ads
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"Which of the following have triggered you to go online when looking for information on products that
you have considered purchasing?“
Base: 16-64 online adults who have gone online in last 12 months to look for info on products considering buying
15. International magazines
• Export of the UK edition
– 6.5% consumer magazines
– 12% business magazines
• International magazines
• Local production of UK magazines
• Company subsidiaries
• Under licence
16. Challenges & Opportunities
• Competition for newstrade space
– Subscriptions
– New markets
• Supermarket dominance
• Postal price hikes
• Contracting ad cake
• Competition from other media
• Potential ad bans/restrictions
17. Challenges & Opportunities (cont .)
• Competitive media
– Online
– Satellite/digital TV
– Newspaper sections
• Masthead programming
• Editorial restrictions/PCC
• Teenage sex
• Economic downturn
Notas do Editor
Power of Three – print, online and face-to-face: this is a term coined by PPA to reflect the changing nature of pub lishers’ activities across the three pillars. The industry has evolved dramatically and developed to include multi-platform offerings. The pillars are: consumer, customer and business media Overall the sector is worth £26.7bn (we will discover more on this on the next slide) According to WARC forecasts: consumer magazines will see a growth of 25 per cent in ad revenue, which is an increase of £193m in the next twelve years. Likewise, business & professional magazines are said to grow by 11 per cent in ad revenue, an increase of £104m.
There are about 8,326 magazines – 4,917 business and professional, 3,409 consumer. Business magazines Many are surprised to see the sheer number of magazines- but in particular the size of the Business and professional magazine industry. There has been a 6 % increase in the number of business titles over the past decade. Business & professional magazines used to be called Trade Magazines and cover titles ranging from The Economist to The Engineer , to Plastics & Rubber Weekly and Play & Party magazine. The big markets in the business press are Medicine & Health with 687 magazines, Sciences with 404 magazines, Social Sciences with 343 magazines. (Source: Brad, March 2008) Consumer magazines The number of consumer titles published has risen 40% in the past decade. In consumer magazines the main markets are Leisure Interests with 482 magazines, Sport with 325 magazines, and County, Town & Local Interest with 315 magazines. (Source: Brad, March 2008) Customer titles are on the increase, with approx. 100 new titles launched 2006/2007, and an increase of 37% in the number of titles in the past 4 years. New launches within this sector represent over 160,000,000 magazines by volume.
Over the past 15 years the consumer magazine market has grown by 63.5 % whilst business & professional magazines by 8.5%
If we take a look, at the last decade as an example: Consumers are spending more on magazines! Consumers spent £397m more each year on magazines, an increase of 24 per cent In 2006, consumer expenditure on magazines was £2,085m. Since 15 years ago, the UK magazine industry is now selling 182 million more copies of magazines per year! That means there are now 15% more magazines sold per annum.
At the top you will see consumer magazines revenue being largely made from circulation whilst the majority of business magazines revenue comes from advertising Many years ago this was a very different picture with both consumer and business magazines being closer to 50:50 in terms of the ad to circulation revenue The reasons for this you will gather from the next few slides
2/3 of business and professional magazine circulation is free copies I’ll now briefly take you through advertising within magazines
Digital publishing is delivering returns, with leading digital publishers predicting that by 2012 digital activities will contribute up to 40 per cent of revenues. The AOP Dual Consumption Survey was conducted across 37 AOP member sites, collected responses from a total of 26,926 respondents. It found that: A dominant theme of the research was that audiences trust the content brand over and above the medium by which it is delivered . Three-fifths of respondents did not want to choose between the two, with the website and print equivalent fulfilling different and distinct consumption needs. 48 per cent of respondents still favoured the publications’ websites for ease of access. 60 per cent of both newspaper and magazine respondents agreed that the website enabled them to find things faster than using the offline equivalent. However, there is still work to be done online in terms of user satisfaction – an area in which print titles appear to have the edge. Half of the magazine respondents rated the print version as more satisfying than the website
During 2007, PPA Marketing investigated how magazines and other media can interact with online search and purchase. Key findings are: 70% of adult internet users are promoted to search by offline advertising 50% of adult television viewers have been triggered to go online by television advertising, while 45% of magazine readers have been driven online by magazine advertising
In over 70% of product categories magazine advertising is the primary driver of online purchase In every product category television and magazine advertising are the most influential of the media. Higher proportions of their audiences said that their advertising had helped them with ideas or information on an online purchase they had made, than for the other media.
