An increase in advertising spending and focus on niche markets will support a modest recovery
Los Angeles, CA (PRWEB) March 17, 2012
Slowed consumer and print advertising spending is expected to persist through 2012, driving revenue in the Magazine & Periodical Publishing industry down by an estimated 0.4% to $43.1 billion. However, this is the mildest decline of the past four years and an improvement over the average yearly contraction of 4.0% over the five years to 2012, according to IBISWorld industry analyst Agata Kaczanowska. Unfortunately for magazine and periodical publishers, their two main sources of revenue tumbled during the economic downturn. As the economy weakened in 2008 and 2009, advertising spending fell, as companies tried to maintain positive cash flows. Meanwhile, the demand for publications contracted as many Americans cut discretionary spending when their disposable incomes declined.
During the five years to 2012, the industry cut costs by closing offices, discontinuing unprofitable magazines and laying off employees, Kaczanowska said. As revenue declined, some businesses were forced to fold. Since 2007, the number of enterprises is estimated to decline at an average annual rate of 3.4% to 5,167 in 2012. Industry profit is expected to fall as well. Nonetheless, the Magazine & Periodical Publishing industry's negative enterprise and profit trends are not as drastic as they are for other media, since magazines and periodicals give advertisers access to niche audiences.
To retain an increasingly digitized readership and enable more focused advertising services, the industry is slowly shifting away from print and toward digital. Companies that can successfully navigate the changing tides will come out ahead because they will be able to complement their print products and expand their audiences. The improving economy will support complementary marketing, leading to an increase in advertising spending and an uptick in sales as customers' pocketbooks recover. Major companies in this industry include Time Warner Inc., Advance Publications Inc., The Hearst Corporation and Meredith Corporation. Market share concentration in this industry is low. For more information, visit IBISWorld’s Magazine & Periodical Publishing report in the US industry page.
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IBISWorld industry Report Key Topics
This industry produces and distributes magazines and periodicals in print and online. However, publishers that exclusively sell online magazines or periodicals are excluded from this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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