The Magazine Publishers of America’s Publishers Information Bureau (PIB) reported on advertising pages for 2009. Pages were down 25.6% and revenues closed at $20Billion, which means a decline of 18.1%. The New York Times reported total magazine advertising pages were down over 58,500 pages when they compared 2008 page count to ad pages in magazines that were still published in 2009. Only 18 magazines enjoyed an increase of advertising pages.
The biggest decliners were financial, insurance and real estate ( down 41.4%) and automotive (down 40.5%). Estimated revenues were down in all categories except for food and food products, which posted a slight 1.4% gain.
PIB also noted that the advertising page reduction experienced in 2009 was so severe that many of the surviving publishers lost focus on their dependence for advertising revenues and, instead, began to concentrate on digital editions.
Fewer advertising pages translate into a decline in overall page count and thus less paper is consumed. If advertising in publications do not improve, difficult to forecast much advancement for publication paper demands.
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What is the forecast for 2010? I assume more reductions of both ad pages and ad pricing.
Just reading Barclays Capital adjusted estimates for magazine ad spending upwards, from -10% to -3%. Overall, Barclays predicts a 3.5% increase in total ad spending to a possible $167.6 billion in 2010, led by TV which will get a boost from corporate political spending resulting from the recent Supreme Court Ruling removing limits. They expect radio to grow 2.2%, outdoor ads to be up 6% and the Internet to gain 8.9% in 2010.
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