Overview ofmags industry07
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  • 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.

Overview ofmags industry07 Presentation Transcript

  • 1. The UK magazine publishingindustry
  • 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 22.8bnOther figures – PPA2007 estimates GRAND TOTAL = £26.7bn Source for Business Media data: GfK NOP Dec 2007
  • 4. Number of Magazine Titles Consumer Mags Business Mags Customer titles6,000 1,6005,500 1,4005,000 1,2004,5004,000 1,0003,500 8003,000 6002,500 4002,0001,500 2001,000 0 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2004 2005 2006 2007 Business: 4,917 Consumer: 3,409 Customer: 1,400 Source: BRAD, 2008 Source: APA estimates, 2008
  • 5. Historical growth in number of titles (past 15 years) 70.0% 63.5% 60.0% 50.0% 40.0% 30.0% 20.0% 8.5% 10.0% 0.0% Consumer Business incl. Customer Source: BRAD, 2008
  • 6. Historical growth in sales and consumer expenditure 2,100 1,500 1,400 1,900 1,300 1,700 Copies sold per annum (m) 1,200 Consumer spend (£m) 1,500 1,100 1,300 1,000 900 1,100 800 900 Consumer spend 700 700 Copies sold 600 500 500 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Source: Advertising Association
  • 7. Sources of Revenue Ad Circulation revenue Consumer Magazines revenue 32% 68% Business Magazines 73% 27%Source: PPA/AA/ABC
  • 8. Methods of distributing magazines• Newstrade• Paid subscription• Controlled circulation• Free distribution• Internet
  • 9. Breakdown of Business Magazine Circulation Paid 31% Free 69% Source: ABC
  • 10. Sales of magazines by the newstrade andsubscriptions 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 searchand purchase•Magazine and TV advertising dominatethe driving of search•Magazine advertising is the most costefficient offline driver to online search Magazines in the•Magazine advertising is as strong as TV driving seatfor driving online purchase
  • 14. Magazines drive online (Cont.)Searching by Category TV Ads Magazine Ads Newspaper Ads Radio Ads 70 60 50 40 30 20 C Fa To H C M Tr H H El O Fo C En os ob ar ol ou th us lo ec av sh il e od ts id th s er m bi se i tro el c tri io ay Ti in et es h n es Ti ni g ck ic ol Ac ck cs s et d et ce s Ap s ss p. or ie s"Which of the following have triggered you to go online when looking for information on products thatyou 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