Magazine Ad Spend To Drop Even More Steeply Than Circ Figures: PwC

hand browsing through stack of magazines
SHARE
THIS



Print magazines have had quite a bashing over the past few years with circulation figures dropping lower and lower due to digital growing exponentially. However, one worrying trend that appears to show no sign of slowing down is the gap between the depleting number of ad dollars given to print magazines compared to the number of people who pay for magazines.

The latest annual projections coming out of professional services network PricewaterhouseCoopers (PwC) show for 2019 consumers spending the moolah on print magazines will drop from $775 million in 2014 to $722 million in 2019, a drop of $53 million.

However, it’s expected ad spend in consumer magazines will fall almost double that, from $453 million in 2014 to $351 million in 2019.

Aussie editor of the PwC report, Megan Brownlow, told B&T publishers are justified in feeling a put out by this.

“The previous rule that eyeballs equal revenue seems to be being challenged,” she said.

“You’ve got a situation where it’s almost like magazines have gone out of fashion and the readers are still there in bigger numbers than the advertising revenue suggests.”

Measurement of magazines and readership is playing a part in the issue though, suggested Brownlow, as in digital you’ve got oodles of data at your fingertips, which “buyers think it’s the more accountable sector”.

Readership data from companies such as Roy Morgan  and Ipsos with its enhanced media metrics Australia (emma) data are a “step in the right direction” for the industry, however she added, “whether or not that’s having traction with agencies is debateable”.

Brownlow instead lauds over the trade campaigns in numerous publications that talk about the power and positive attributes of magazines as “that’s exactly how consumers feel about magazines”.

“It’s just a disadvantage not being able to attribute that love and engagement as clearly as you can through a click,” she said.

Since the surge of digital and the drop of print circulation figures, magazine publishers had hoped transitioning the printed copy online in a downloadable format would help scale the dropping figures.

The uptake hasn’t had the desired outcome though, prompting Peter Zavecz, CEO of mag publishing giant Pacific Magazines, to tell PwC when people interact with a magazine they want a ‘lean back’ experience, rather than flicking through on an iPad or the like.

“It’s just a signal that readers have a different experience [with a magazine], the more functionality [built into the app] the less the response by consumers,” he said in the report.

Longer and deeper brand partnerships was another core trend PwC saw emerging, with the likes of Pac Mags’ marie claire and Girlfriend creating The Parcel, a beauty product filled entity consumers can sign up – a partnership between consumers, the magazine and numerous beauty brands.

Newspapers

Meanwhile, over in the land of newspapers, the digital market advertising market and the print ad market are nearing each other more and more.

Per the report, circulation revenues is expected to provide the majority of revenue, however the ad spend will deplete, a not unexpected trend.

The current projection is a drop in print ad spend of $834m by 2019, roughly half of the ad spend in 2014 ($1,667m).

By 2019, PwC predicts newspaper circulation print spending will drop by about half, from $1,218 million in 2014 to $612 million in 2019.

However digital spending will hopefully increase from $76m to $372m by 2019.

Please login with linkedin to comment

Latest News

The Diamond Concierge Gives Away $50K Ring In Campaign By McCann Queensland
  • Advertising
  • Campaigns

The Diamond Concierge Gives Away $50K Ring In Campaign By McCann Queensland

McCann Queensland’s second instalment of ‘The 5th C’ campaign launched over the weekend for online diamond retailer The Diamond Concierge, which received over 47million views around the world in the first 48 hours of it being released. In this second phase of the campaign, The Diamond Concierge gave away an $85,000 diamond ring, with Gold […]

Group of young hipster friends playing with smartphone with mutual disinterest towards each other - Modern situation of technology interaction in alienated lifestyle - Internet wifi connection
  • Marketing

Study: Gen Zs Eschewing Sex, Booze & Their Driver’s Licence!

A new study has revealed something we all already know – the Gen Zs (those born after 2000) are addicted to social media. However, a more interesting finding of the study is they’re apparently delaying adult behaviours such as drugs, sex, alcohol and getting their driver’s licence. According to the study, by US psychologists Jean Twenge and Heejung Park, young […]

by B&T Magazine

B&T Magazine
Sparro Recruits Key Account Director Following Client Wins
  • Marketing

Sparro Recruits Key Account Director Following Client Wins

Digital marketing agency Sparro has announced the appointment of Hannah Jones (pictured above) as a key account director following a spate of client wins. Jones joins Sparro’s senior team alongside founders Cameron and Morris Bryant, overseeing a portfolio of accounts that includes Webjet, Domino’s Pizza, TAFE NSW, Temple & Webster, F45 Training and Bing Lee. […]

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry
  • Media

Women’s Health’s Jacqui Mooney On Driving A Women’s Brand In An Evolving Industry

In an industry facing change, Jacqui Mooney, editor of Women’s Health believes brands such as hers will continue to be a constant. Please note: this article was contributed by Magazine Networks. The magazine industry may be seeing substantial change but Jacqui Mooney has a goal that remains firm: to create happier, healthier lives for Australian women. […]

Talent Shortage? We’re Calling Bullsh*t!
  • Opinion

Talent Shortage? We’re Calling Bullsh*t!

In this guest post, Mike Hill, CEO and co-founder of Puffling, argues the reason women rarely rise to the top in the advertising industry isn’t from a shortage of suitable candidates… Two of the biggest issues plaguing the global advertising industry are a so-called talent shortage and abysmal gender diversity, particularly at the senior level. Just think… […]

Opinion

by B&T Magazine

B&T Magazine
Survey: Bibles, Condoms & Turn-downs Top List Of Hotel Guest Gripes
  • Marketing

Survey: Bibles, Condoms & Turn-downs Top List Of Hotel Guest Gripes

A new study by New Zealand hotel chain Rees Hotels has identified the biggest likes and gripes of its paying guests. When it comes to the things hotel guests like the most, free Wi-Fi topped the survey’s list. Next was complimentary breakfast, car parking, a room with a view and daily housekeeping. The items and amenities […]

by B&T Magazine

B&T Magazine
Why Consumer Brands Are Failing Aussie Mums
  • Marketing
  • Opinion
  • Partner Content

Why Consumer Brands Are Failing Aussie Mums

Is your game chainsaws or large marlin wall-hangings? Can't seem to attract the mums? This couldn't come soon enough.

Opinion

by B&T Magazine

B&T Magazine
Network Ten Creditors Approve CBS Deal
  • Media

Network Ten Creditors Approve CBS Deal

It seems the fight for Ten between CBS and media moguls Lachlan Murdoch and Bruce Gordon may finally be over.

by B&T Magazine

B&T Magazine
MKTG Signs Exclusive Commercial Partnership With PlayersVoice
  • Marketing
  • Media

MKTG Signs Exclusive Commercial Partnership With PlayersVoice

MKTG has announced it has signed an exclusive commercial partnership with newly-launched sports storytelling site PlayersVoice.com.au – an agreement that will see the agency move into a new territory of sports marketing. The partnership between MKTG and PlayersVoice will see the business managing brand partnership opportunities for the new platform; working with clients to deliver […]

Domo Introduces New Data Security Software Solution
  • Marketing
  • Technology

Domo Introduces New Data Security Software Solution

Domo has announced it has introduced new cloud security technology for its Bring Your Own Key (BYOK) software, which includes unique capabilities like rolling generation of data encryption keys and a built-in kill switch. Domo BYOK is the first BYOK enterprise software solution for cloud analytics and business intelligence, and builds on the company’s existing security, compliance and […]

Shopper Media Group Grows Sydney & Melbourne Sales Teams
  • Advertising
  • Marketing
  • Media

Shopper Media Group Grows Sydney & Melbourne Sales Teams

Shopper Media Group (SMG) has continued to grow its Sydney and Melbourne sales teams to keep up with the demand for Smartlite Panels for shopping centres. Ashley Munro joins SMG as group sales manager for Sydney, having previously worked in a similar role at NOVA Entertainment. Laura Mason has been appointed as SMG’s business manager […]

RIO DE JANEIRO, BRAZIL - AUGUST 14:  Usain Bolt of Jamaica competes in the Men's 100 meter semifinal on Day 9 of the Rio 2016 Olympic Games at the Olympic Stadium on August 14, 2016 in Rio de Janeiro, Brazil.  (Photo by Cameron Spencer/Getty Images)
  • Advertising
  • Media

Olympics, Census Prove Tough Hurdles For Media Agencies: SMI

Australia’s media agency market has experienced another tough month in August, according to the latest data by Standard Media Index (SMI). SMI noted the softer demand this time around was primarily due to the Rio Olympics and Census providing abnormal bookings last year, resulting in demand for August 2017 so far being back 12.1 per […]

The Monkeys Takes Over From M&C Saatchi On NRMA’s Creative Account
  • Advertising

The Monkeys Takes Over From M&C Saatchi On NRMA’s Creative Account

Accenture-owned agency The Monkeys has bolstered its client ranks, having been chosen to handle the creative for the NRMA. The Monkeys CEO Paul Green confirmed to B&T that the agency had been appointed to the NRMA account by parent company IAG, which also includes brands CGU and Swann Insurance. M&C Saatchi was the incumbent creative […]

by B&T Magazine

B&T Magazine
A waitress carries beer mugs in the Hofbraeuhaus tent after the opening of the famous Bavarian
  • Marketing

Study: Why No Or Low Alcohol Beers Are Fast Becoming Drinking’s “New Cool”

New research from global market intelligence agency Mintel reveals that over a quarter of consumers in France (28 per cent) and Germany (27 per cent ) agree that low (under 3.5 per cent) or no alcohol beer tastes just as good as full-strength beer. And while younger consumers may have been the most enthusiastic drinkers in previous generations, […]

Engine Group Encourages Queenslanders To ‘Go Local’ In New TVC For State Govt
  • Advertising
  • Campaigns

Engine Group Encourages Queenslanders To ‘Go Local’ In New TVC For State Govt

Brisbane creative agency Engine Group has launched an integrated campaign for the Queensland government promoting the benefits of buying locally and supporting local small businesses. The ‘Go Local, Grow Local’ social marketing campaign celebrates small businesses across Queensland and highlights that small businesses are the lifeblood to growth in local communities. Central to the new […]

Sam Weir, Editor - The Advertiser & AdelaideNow 
 Editorial 
 
 Picture: Turner Matt
  • Media

News Corp Appoints New Editor For The Courier-Mail

News Corp Australia has announced the appointment of Sam Weir (pictured above) as editor of Queensland’s The Courier-Mail. Weir is one of Australia’s most accomplished editors, having edited the Perth Sunday Times and for the last four-and-a-half years, The Advertiser in Adelaide. News Corp Australasia executive chairman Michael Miller said: “I am delighted Sam has […]

Is This The Creepiest Ice-Cream Ad Ever?
  • Campaigns

Is This The Creepiest Ice-Cream Ad Ever?

Look, a terrifying ice-cream ad! And by "terrifying" we really mean Tony Abbott in his sluggos kind of "terrifying".

by B&T Magazine

B&T Magazine
Creatives, Step Up To The CX Plate!
  • Marketing
  • Opinion

Creatives, Step Up To The CX Plate!

Aussie creatives urged to step up to the CX plate! That's the Adobe boss saying it; like B&T would never say try harder.

Opinion

by B&T Magazine

B&T Magazine
InMobi’s Anne Frisbie On Ad Fraud
  • Advertising

InMobi’s Anne Frisbie On Ad Fraud

B&T sat down for a chinwag with InMobi’s Anne Frisbie who thought only half of our questions were poor & unresearched.

by B&T Magazine

B&T Magazine
Facebook Provides More Clarity & Control For Brands
  • Advertising
  • Media

Facebook Provides More Clarity & Control For Brands

Facebook has announced it is taking action to provide more clarity and controls for advertisers. The updates include: Third-party verification Facebook is seeking accreditation from the Media Ratings Council and set a timeline of 18 months to audit, review and accredit Facebook measurement across three key areas: first-party served ad impression reporting; third-party viewability partner […]

Ogilvy Duo To lead Miami Ad School’s 2017 Social Media Boot Camp
  • Advertising

Ogilvy Duo To lead Miami Ad School’s 2017 Social Media Boot Camp

Miami Ad School has announced that Ogilvy’s Alex Watts (head of social) and Jennifer Ngai (lead social strategist), will lead its Social Media Boot Camp in the coming spring term. The 10-week boot camp is an intensive program where students work on live briefs to create fully-executed social media campaigns, and will run from Monday […]