Magazine Publishers Take on the Internet

Magazine Publishers Take on the Internet

November 16, 2012

1

Advertising revenue is the primary source of income for magazines and other print media. Circulation revenue is the second major source of income for these publications. Magazines have been impacted severely recently by a combination of a down economy and more advertising revenue being spent toward online advertising. Lower circulation numbers and decreased advertising revenue have led to many magazines going out of business and others shifting toward online only content. Some magazines have realized the severity of these issues and have taken steps to try and reinvent themselves as a better advertising alternative and they very well may have success.

Magazines advertising revenues have dropped from nearly $25 billion in 2007 to under $20 billion in 2009.At the same time, magazine newsstand sales have dropped 10 percent each of those years. A recent study by the website How-To Geek asked their readers if they preferred reading print magazines, online articles or both. Only ten percent preferred print magazines. These numbers are very troubling for the magazine industry and show an overall trend in the industry. According to emarketer estimates, spending for online advertising will surpass print advertising for the first time in 2012. Magazines have been in the advertising business for more than two hundred years and this certainly is not their first challenge but they must face these challenges head on.

In 2010, five magazine publishers including Conde Nast, Hearst Magazines, Meredith Corporation, Time, and Werner Media teamed up to produce one of the largest print campaigns ever to promote the importance of advertising in magazines. The goal was to promote magazines as an effective advertising medium in the age of the internet. The campaign touted celebrities and

2

Pushed the appeal of magazines. There was a special logo created for the campaign. The “Magazines” logo was created by...