SMI: Magazines hit by 'perfect storm' after huge SMI drop

SMI: Magazines hit by 'perfect storm' after huge SMI drop
SHARE
THIS



The decline in media agency spend in magazines is because of a “perfect storm”, with agency bookings down more than a quarter in February, according to Pacific Magazines sales boss Peter Zavecz.

The medium took the biggest hit of any in the February Standard Media Index (SMI) figures, dropping 27.9%. Agency bookings make up around three-quarters of their advertising revenue.

This may have been due, in part, to huge declines in retail (8%) and FMCG (11%) ad spending, which are traditionally large clients for magazines.

Zavecz (pictured) said agencies were punishing magazines to a greater extent than their audiences are dropping, pointing to figures for the top 20 mags showing their readership dipped 2% in six months to December 2012, but ad spend went down 16%.

He told B&T: “We have been caught in the perfect storm as our major advertisers are FMCG, toiletries and cosmetics and retail and they are going through their own challenges, particularly FMCG struggling with the big supermarkets.

“Media agencies are underselling this well ahead of the curve, but the point of the curve where it’s really getting top those levels isn’t really being realised with these trends.

 “These figures are more than alarming. But we’ve got the Magazine Publishers Association back together with News Limited and Bauer and the three of us will start to push more aggressively.”

PHD CEO Mark Coad agreed the push from the MPA would improve their share of spend, but said they would probably suffer further declines because of the structural shifts currently in place.

He added: “There’s definitely structural shifts, with the emergence of other areas like online and digital, magazines have copped the brunt of that, but I don’t think the declines will continue like that. It’s not sustainable.

“FMCGs are one of their biggest advertisers, and one of their biggest competitors is supermarkets, because of the pressure they’re placing on margins that is squeezing their advertising budgets.”

Maxus CEO Jon Chadwick added: “There’s a cautious mindset, and where you get a cautious mindset you veer away from the parts of the market where there is some forms of turbulence, and the declines in audiences would be that reason.”

But Zavecz hit back saying whilst newspapers were struggling because a lot of their content is given away online each day, magazines do not suffer the same problem, with its premium content protected, sometimes for many months.

“We were the original paywall,” he added.

Please login with linkedin to comment

Latest News

The Turning Tide Against Surveillance Capitalism
  • Opinion

The Turning Tide Against Surveillance Capitalism

In this guest post, CTO of Wiise, Hamish Browne (pictured below), says tech’s new focus on privacy will lead to new rules and new ways of doing business for marketers… With the delicate balance between customer data and privacy in the spotlight like never before, the potential emergence of new standards and business models, is […]

Opinion

by B&T Magazine

B&T Magazine
Kim Kardashian Spruiks Cryptocurrency In Instagram Ad
  • Media
  • Technology

Kim Kardashian Spruiks Cryptocurrency In Instagram Ad

Businesswoman, reality TV star, and social media personality Kim Kardashian has posted an ad for mysterious cryptocurrency Ethereum MAX [EMAX]. In a post on her Instagram story – where she has 228 million followers – Kardashian wrote: “Are you guys into crypto????” “This is not financial advice but sharing what my friends just told me […]

by B&T Magazine

B&T Magazine
Great Southern Bank Rebrands With ‘Happily Clever After’ Via Indie Agency Richard Rose
  • Campaigns

Great Southern Bank Rebrands With ‘Happily Clever After’ Via Indie Agency Richard Rose

Great Southern Bank has launched a brand campaign this week, ‘Happily Clever After’, coinciding with its name change from Credit Union Australia, bringing to life its purpose of helping all Australians own their own home. The journey to changing from Credit Union to Great Southern Bank began back in 2020. When Australia’s largest customer-owned bank, […]

Nine Promotes Jo Clasby To Commercial Director, Publishing
  • Marketing

Nine Promotes Jo Clasby To Commercial Director, Publishing

Nine has promoted Jo Clasby to the role of commercial director – publishing, where she will report to Nick Young. She was previously director of client partnerships – publishing. Her new role establishes her at the same level of seniority as Anthony Smyth, commercial director – radio. Smyth was promoted at the start of this […]

Mark Zuckerberg, chief executive officer of Facebook Inc., listens as Narendra Modi, India's prime minister, not pictured, speaks during a town hall meeting at Facebook headquarters in Menlo Park, California, U.S., on Sunday, Sept. 27, 2015. Prime Minister Modi plans on connecting 600,000 villages across India using fiber optic cable as part of his
  • Technology

“No F*cking Way!”: Pink Floyd Frontman Refused To Give Mark Zuckerberg Rights To Song

Roger Waters, co-founder of Pink Floyd, said he refused to give Mark Zuckerberg the rights to use hit song Another Brick in the Wall (Part Two). Waters was speaking at a pro-Julian Assange event when he said that he had been offered a “huge, huge amount of money” for the use of the 1979 hit […]

by B&T Magazine

B&T Magazine
Accor Celebrates Aussie & NZ Cities With New ‘Go ALL Out’ Campaign
  • Campaigns

Accor Celebrates Aussie & NZ Cities With New ‘Go ALL Out’ Campaign

Hospitality giant Accor is shining a light on the joy of cities through its newest campaign, ‘Go ALL Out’, which launches in Australia and New Zealand today. The gateway to the ‘Go ALL Out’ campaign is ALL – Accor Live Limitless, a lifestyle loyalty program that integrates rewards, services and experiences throughout the Accor portfolio […]

Marketing Firm Silverbean Set To Double Headcount To Support New Client Wins
  • Marketing

Marketing Firm Silverbean Set To Double Headcount To Support New Client Wins

Global affiliate and partner marketing firm Silverbean has secured new contracts with 13 major Australian brands and is now working to double the size of its Asia-Pacific team. Silverbean launched in Australia in 2019 and has seen steady growth through its work with retailers. Now, with 15 new brands joining the Silverbean portfolio, the agency […]

Xandr Launches New Guide Exploring The Future Of Identity
  • Advertising
  • Technology

Xandr Launches New Guide Exploring The Future Of Identity

Xandr, AT&T’s advanced advertising company, today released “Shaping the Future of Identity,” an industry guide exploring the approaches for buyers and sellers, as well as market participants, as they evaluate identity solutions in preparation for a future without third-party cookies.

GTI Appoints New GM Of Marketing & Strategy, Snares Fresh Client
  • Marketing

GTI Appoints New GM Of Marketing & Strategy, Snares Fresh Client

Tourism PR and marketing agency GTI has announced the appointment of longtime media executive Jenny Pham as its new general manager of marketing and strategy. Pham (pictured above) will lead the agency’s marketing division with responsibility for strategy, media and consumer marketing, while GTI founder and managing director Sarah Anderson remains as the day-to-day lead […]

Hospitality Networking Platform Clipboard Launches Equity Crowdfunding Campaign
  • Campaigns
  • Marketing

Hospitality Networking Platform Clipboard Launches Equity Crowdfunding Campaign

Clipboard, a free professional networking platform for the hospitality industry, has announced it will seek to raise its next round of funding via equity crowdfunding platform Birchal. This will power its vision to transform the way the fragmented hospitality industry connects, shares experiences, markets and recruits. With a growing member database of over 24,000 hospitality […]