Ad Spending Update
As the U.S. economy continues to see “green-shoots,” this same trend is happening among the magazine industry. According to Media Industry Newsletter, monthly magazines saw total ad pages grow 7.9 percent in June and 4.9 percent in the second quarter of 2010 compared to the same periods last year. Although these are modest increases, this marks the first quarter of positive growth after nine consecutive quarters of drops.
Early indicators show that Q3 will continue this trend, as July paging is up and the all-important September fall fashion issues are seeing growth as well. Although there has been positive news recently, according to PricewaterhouseCoopers, print ad spending in U.S. consumer magazines is set to decline again in 2010, 2011 and 2012 before finally rebounding in 2013 and 2014. I guess only time will tell.
Over the last three months, there have been many changes to the magazine space, including Gourmet’s revival , rate base cuts to Meredith’s Ladies’ Home Journal and Traditional Home , USPS announced a potential rate hike of 8 percent and new publications in the works from Condé Nast. Magazine publishers continue to explore the emerging digital space and have embraced not only the iPad, but are also planning to sell subscriptions on Facebook.
Finally, the following are some new innovative programs/opportunities in the print space: