PIB: Economic Woes Send Mag Ad Revs, Pages Downward In Q108

The economic downturn is having a notable affect on magazines, as rate-card-reported ad revenues for Q1 came in at $5.2 billion, a 1.2 percent decline from the previous year, according to Publishers Information Bureau. Ad pages for the 231 pubs measured by PIB during the quarter totaled 49,166, a 6.4 drop versus Q107. Drugs, food and apparel were the top three magazine ad spend categories. To show the dismal state of magazine advertising finds itself, in Q107, PIB rate-card ad revs grew by 6.9 percent over the prior year’s period, as ad pages were flat year-over-year. Looking 2007 as a whole, magazine rate-card revs gained 6.1 percent over 2006, as ad pages saw a small decrease of 0.6 percent. None of the industry groups track online ad spending for magazines, so it’s difficult to say how much the internet is impacting the industry. Still, in terms of ad growth by category, ZenithOptimedia forecast in December that online would overtake magazines in terms of the the share of ad dollars by 2010. Release

Flat-earth thinking: Calls to the MPA, as well as their counterpart the Online Publishing Association and other trade groups and measurement firms, made it clear when it comes to magazines and advertising, the world is still flat – no one gathers a comprehensive picture of internet advertising on magazine websites. As more dollars migrate from print to online, it is long overdue for the industry to show a converged look at print and web-based ads.

A digital rate card: coming next year?: There are a number of reasons the magazine industry hasn’t gotten together on getting comparable PIB numbers for online, says Wayne Eadie, SVP for research at the MPA, in an interview with paidContent. Number one is the lack of rate cards for online. And that’s because no one can agree on a uniform measurement of units similar to what’s done with print mags. And it hasn’t happened due to a lack of trying, Eadie insists. “A number of entities, including software company Availant and IAG, which had worked on a very limited look at online magazine advertising with PricewaterhouseCoopers. We’re hoping by next year to at least come up with a way of having magazines identify the value of advertising on their site, similar to a rate card. The rate card itself is just a benchmark; no one pays that exact amount, but it’s a good way to get an average, across the board comparison.”

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