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GLOBAL TRENDS
AND CHALLENGES
FOR MAGAZINES
Donald D. Kummerfeld
President & CEO
International Federation of the
Periodical...
Current Magazine Trends
(before global recession)
• Magazine companies are generally healthy and profitable in
most countr...
The future of magazine publishing
Growth in the consumer magazine market has been fuelled by
strong underlying performance...
Impact of Recession on Magazines
• Sharpe decline in magazine advertising in those
countries with heavy ad volumes e.g. US...
Impact of Recession on Magazine
(continued….)
• Slowdown in growth of internet advertising,
particularly in display and vi...
Region 2005 2006 2007 2008 2012
CARG
2008-2012
United States 23,444 23,277 24,091 24,772 28,970
% change 3.8 -0.7 3.5 2.8 ...
Component 2005 2006 2007 2008 2012
CARG
2008-2012
Print Advertising 33,796 34,863 35,800 36,958 42,505
% change 4.4 3.2 2....
United States 2005 2006 2007 2008
CARG
2008-2012
Advertising $ % $ % $ % $ % $ %
Print 12,847 4.9 13,168 2.5 13,695 4.0 14...
Latin America 2005 2006 2007 2008 2012
CARG
2008-2012
Argentina 518 555 661 734 993 8.5
Brazil 1,511 1,601 1,710 1,820 2,2...
Latin America 2005 2006 2007 2008
CARG
2008-2012
Advertising $ % $ % $ % $ % $ %
Print 984 16.0 1,077 9.5 1,195 11.0 1,308...
Latin America 2005 2006 2007 2008 2012
CARG
2008-2012
Argentina 70 73 88 98 127 7.6
Brazil 538 593 666 738 1,063 9.8
Chile...
Latin America 2005 2006 2007 2008 2012
CARG
2008-2012
Argentina 448 482 573 636 866 8.6
Brazil 973 1,008 1,044 1,082 1,231...
There is no reliable data for the whole
industry but here are some recent examples:
1. Advertising Age Survey, November 20...
Impact of Digital Publishing on Traditional Print
Magazines
Transformation
from Print to
Digital
Great Impact Some Impact ...
Shift of advertising from Print to Internet
Heavy Shift Moderate Shift No Shift
Telecom & Computer Automotive Prescription...
Increased focus on digital media has resulted in
need for improved & amplified promotion of
magazines.
Focus on:
• Engagem...
Magazines: A Revolutionary Medium
A revolutionary medium that gets the undivided attention of your
target audience
The rev...
The days of linear TV and intrusive advertising
are numbered.
The future w ill be w on by those w ho can “ ow n”
communiti...
Shift in Attitude & Behaviour of Media Consumers
• The impatient media consumer
“I want it (entertainment & information) n...
The future of magazine publishing
Currently more than half of the respondents would go
on buying their preferred magazine ...
Other Trends Impacting Magazines
• Media Convergence: magazine companies
becoming multimedia conglomerates and
selling mul...
• Video is rapidly becoming a major if not the
dominant form of web content and advertising.
• Magazines thus far unsucces...
The future of magazine publishing
Organisational changes are required to thrive
Shift from
organisation by
medium
… to one...
MAGAZINES ARE IN PERPETUAL
TRANSITION, CREATING AND
RECREATING THEMSELVES IN A
FAST CHANGING TECHNOLOGY
DRIVEN MEDIA ENVIR...
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Magazine trends

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  • Circulation revenues have showed modest growth over the past few years In Anglo Saxon countries the migration of readers to the Internet will cut into the advertising and circulation revenue New launches in Europe will offset increased competition from the Internet and will lead to a modest growth Strong market growth is expected for the BRIC countries due to a growing middle class
  • Many consumers see digital-only content as a substitute for printed content. Any magazine publisher which launches digital content connected to its brands risks cannibalising subscription and circulation revenues from its traditional print magazines. There is no evidence thus far that consumer magazine print products have been cannibalized by the presence of digital versions of the magazine on the title’s website. This fear may therefore be groundless.
  • Most magazine publishers will also have to make major organisational changes. Traditional publishers typically organise their operations around different media types, whereas consumers use multiple channels. If these publishers are to stay close to their readers, they will need to integrate their operations and hire employees with the right blend of creative and technological skills.
  • Transcript of "Magazine trends"

    1. 1. GLOBAL TRENDS AND CHALLENGES FOR MAGAZINES Donald D. Kummerfeld President & CEO International Federation of the Periodical Press (FIPP)
    2. 2. Current Magazine Trends (before global recession) • Magazine companies are generally healthy and profitable in most countries and in most sectors. New titles abound and weeklies are growing trend. • But little overall growth in mature markets. • Yet market prices for well-established successful titles remain high. • Growth in developing markets driven by increasing consumer incomes and by growth in advertising, but global challenges are similar in all countries. • Globalization of successful titles seeking to take advantage of opportunities in foreign markets, both mature and developing.
    3. 3. The future of magazine publishing Growth in the consumer magazine market has been fuelled by strong underlying performance of the BRIC countries - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 100,000 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Revenuein$millions Circulation Print advertising Digital advertising Outlook Consumer magazine market
    4. 4. Impact of Recession on Magazines • Sharpe decline in magazine advertising in those countries with heavy ad volumes e.g. US, Germany, UK – (US = -12% 2008, -13% 2009) • Smaller ad losses in developing countries where consumer spending is still growing e.g BRIC countries • Little or no impact on copy sales • Marginal titles disappear, fewer new launches
    5. 5. Impact of Recession on Magazine (continued….) • Slowdown in growth of internet advertising, particularly in display and video. Search related and e-commerce related ad spending remains strong. • Underlying shift towards digital and particularly towards mobile platforms continues. • Increase in media consolidation , including magazines. The longer the recess lasts the greater the restructuring and reorganization.
    6. 6. Region 2005 2006 2007 2008 2012 CARG 2008-2012 United States 23,444 23,277 24,091 24,772 28,970 % change 3.8 -0.7 3.5 2.8 4.6 3.8 EMEA 35,358 36,357 36,831 37,813 42,819 % change 3.3 2.8 1.3 2.7 3.3 3.1 Asia Pacific 14,495 14,927 14,959 15,390 17,572 % change 4.8 3 0.2 2.9 3.7 3.3 Latin America 2,721 2,898 3,162 3,401 4,370 % change 9.7 6.5 9.1 7.6 6.1 6.7 Canada 1,151 1,170 1,208 1,237 1,378 % change 1.9 1.7 3.2 2.4 3.1 2.7 Total 77,169 78,629 80,251 82,613 95,109 % change 3.9 1.9 2.1 2.9 3.9 3.5 Global Consumer Magazine Publishing Market by Region (US$ Millions) Source: PricewaterhouseCoopers
    7. 7. Component 2005 2006 2007 2008 2012 CARG 2008-2012 Print Advertising 33,796 34,863 35,800 36,958 42,505 % change 4.4 3.2 2.7 3.2 3.7 3.5 Digital Advertising 128 394 638 1,059 4,246 % change - 207.8 61.9 66.0 33.9 46.1 Total Advertising 33,924 35,257 36,438 38,017 46,752 % change 4.8 3.9 3.3 4.3 5.9 5.1 Circulation 43,245 43,372 43,813 44,596 48,357 % change 3.3 0.3 1.0 1.8 2.1 2.0 Total 77,169 78,629 80,251 82,613 95,109 % change 3.9 1.9 2.1 2.9 3.9 3.5 Global Consumer Magazine Publishing Market by Component (US$ Millions) Source: PricewaterhouseCoopers
    8. 8. United States 2005 2006 2007 2008 CARG 2008-2012 Advertising $ % $ % $ % $ % $ % Print 12,847 4.9 13,168 2.5 13,695 4.0 14,000 2.2 16,000 3.2 Digital 128 - 198 54.7 342 72.7 560 63.7 2,400 47.7 Total Advertising 12,975 5.9 13,366 3.0 14,037 5.0 14,560 3.7 18,400 5.6 Circulation 10,469 1.3 9,911 -5.3 10,054 1.4 10,212 1.6 10,570 1.0 Total 23,444 3.8 23,277 -0.7 24,091 3.5 24,772 2.8 28,970 3.8 Consumer Magazine Publishing Market by Component (US$ Millions and %) Source: PricewaterhouseCoopers
    9. 9. Latin America 2005 2006 2007 2008 2012 CARG 2008-2012 Argentina 518 555 661 734 993 8.5 Brazil 1,511 1,601 1,710 1,820 2,294 6.1 Chile 63 67 71 77 100 7.1 Colombia 176 192 205 222 291 7.3 Mexico 440 468 498 529 664 5.9 Venezuela 13 15 17 19 28 10.5 Total 2,721 2,898 3,162 3,401 4,370 6.7 Consumer Magazine Publishing Market by Country (US$ Millions) Source: PricewaterhouseCoopers At average 2007 exchange rates
    10. 10. Latin America 2005 2006 2007 2008 CARG 2008-2012 Advertising $ % $ % $ % $ % $ % Print 984 16.0 1,077 9.5 1,195 11.0 1,308 9.5 1,772 8.2 Digital - - - - 5 - 14 180.0 79 73.7 Total Advertising 984 16.0 1,077 9.5 1,200 11.4 1,322 10.2 1,851 9.1 Circulation 1,737 6.4 1,821 4.8 1,962 7.7 2,079 6.0 2,519 5.1 Total 2,721 9.7 2,898 6.5 3,162 9.1 3,401 7.6 4,370 6.7 Consumer Magazine Publishing Market by Component (US$ Millions and %) Source: PricewaterhouseCoopers
    11. 11. Latin America 2005 2006 2007 2008 2012 CARG 2008-2012 Argentina 70 73 88 98 127 7.6 Brazil 538 593 666 738 1,063 9.8 Chile 43 46 50 55 75 8.4 Colombia 116 130 141 155 215 8.8 Mexico 211 228 246 266 355 7.6 Venezuela 6 7 9 10 16 12.2 Total 984 1,077 1,200 1,322 1,851 9.1 Consumer Magazine Total Advertising Market (US$ Millions) Source: PricewaterhouseCoopers At average 2007 exchange rates
    12. 12. Latin America 2005 2006 2007 2008 2012 CARG 2008-2012 Argentina 448 482 573 636 866 8.6 Brazil 973 1,008 1,044 1,082 1,231 3.4 Chile 20 21 21 22 25 3.5 Colombia 60 62 64 67 76 3.5 Mexico 229 240 252 263 309 4.2 Venezuela 7 8 8 9 12 8.4 Total 1,737 1,821 1,962 2,079 2,519 5.1 Consumer Magazine Circulation Market (US$ Millions) Source: PricewaterhouseCoopers At average 2007 exchange rates
    13. 13. There is no reliable data for the whole industry but here are some recent examples: 1. Advertising Age Survey, November 2007. 300 largest magazines average % of revenue from digital platforms = 3% 2. Meredith Corporation, US = approximately 20% 3. Axel Springer Group, Germany = approximately 10% 4. Sanoma Magazines, Hungary = 12% 5. Forbes Magazine = 40% 6. IDG = more than 50% from digital platforms Magazines’ Digital Revenue
    14. 14. Impact of Digital Publishing on Traditional Print Magazines Transformation from Print to Digital Great Impact Some Impact Little or no Impact B2b IT Sector Other Major B2B Categories Smaller B2B Categories Consumer Lifestyle & Fashion Monthlies Consumer Business and News Titles. Consumer teen & young adult titles Consumer specialist titles
    15. 15. Shift of advertising from Print to Internet Heavy Shift Moderate Shift No Shift Telecom & Computer Automotive Prescription drugs Retail Entertainment Toiletries & Cosmetics Financial services Apparel Food
    16. 16. Increased focus on digital media has resulted in need for improved & amplified promotion of magazines. Focus on: • Engagement • Accountability • ROI
    17. 17. Magazines: A Revolutionary Medium A revolutionary medium that gets the undivided attention of your target audience The revolutionary medium that people opt into…not out of The revolutionary medium where advertising is actually welcomed The revolutionary medium that delivers engagement and reach at the same time The revolutionary medium that’s invaluable at promoting word of mouth The revolutionary medium that delivers your highest spending customers The revolutionary medium where advertising is more relevant than any other media
    18. 18. The days of linear TV and intrusive advertising are numbered. The future w ill be w on by those w ho can “ ow n” communities and embed advertising w ithin trusted content … … in the w orld of convergence, a magazine heritage w ill be a pow erful asset.
    19. 19. Shift in Attitude & Behaviour of Media Consumers • The impatient media consumer “I want it (entertainment & information) now” • Media viewed not as discrete pre-packaged products to be consumed but rather as destinations to be visited to get whatever information or entertainment or social interactivity is available. • Magazines’ & Newspapers’ branded destinations have some initial advantage over newly branded destinations in attracting consumers but in time, the best content wins.
    20. 20. The future of magazine publishing Currently more than half of the respondents would go on buying their preferred magazine brand if it were published online only % of respondents who feel attached to a magazine and would go on buying the magazine if it was to be published online only 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Brazil China Canada Germany France India The Netherlands Russia United Kingdom USA Willingness to switch to an online version of preferred magazine
    21. 21. Other Trends Impacting Magazines • Media Convergence: magazine companies becoming multimedia conglomerates and selling multimedia advertising packages. • Free or customer magazines are a growing phenomenon in the marketplace. • Partnering with search engines to grow web traffic and advertising is increasing. • Mobile phones are becoming viable platforms for digital magazine content.
    22. 22. • Video is rapidly becoming a major if not the dominant form of web content and advertising. • Magazines thus far unsuccessful in finding ways to get revenue from consumers on digital platforms. • The digital divide: to integrate or separate print and digital editorial staffs. • Digital Content tending towards aggregation and packaging of original editorial, user generated and third party content. • E paper: the next digital bombshell? Other Trends Impacting Magazines (continued….)
    23. 23. The future of magazine publishing Organisational changes are required to thrive Shift from organisation by medium … to one based on function
    24. 24. MAGAZINES ARE IN PERPETUAL TRANSITION, CREATING AND RECREATING THEMSELVES IN A FAST CHANGING TECHNOLOGY DRIVEN MEDIA ENVIRONMENT
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