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Archive for the ‘Magazines’ Category

  • Oct
  • 17

Who’s Spending What and Where? Latest Media Spend Trends

It’s the conundrum facing all marketers, and it’s one that’s becoming ever more pressing as marketing becomes increasingly results focused – how should I be proportioning my marketing spend to achieve maximum return on investment?

Of course, the answer is different for every product and brand, but one useful input into this process is ‘what is everybody else doing?’ and it’s here that Ofcom’s recently released Communication Report for 2011 can help.

The report, produced annually, examines a wide range of communication trends from media consumption habits to smartphone adoption. It also includes figures from a wide range of sources which analyse advertising spend by media from 2005 to 2010. Here are the key findings:

- Spend on internet advertising, including search, display and classified, has more than trebled proportionally since 2005, from 8% of overall spend to 26% in 2010.

In the first year of the recession, between 2008 and 2009, it was the only spend category which grew in absolute terms, overtaking TV to become the largest single spend category in 2009 – a position it retained (but only just) in 2010.

Throughout the 5 year period, most of the growth has been driven by increased search spend, which has not only grown in absolute terms each year between 2005 and 2010 but has also grown as a proportion of overall online spend – from 56% in 2005 to 61% in 2009.

Internet_Advertising_Spend_by_Category

Expenditure on search advertising grew yet again between 2009 and 2010, by 9%, but for the first time its share of internet ad spending fell – from 61% to 57%. This proportional fall was driven by the phenomenal growth of online display advertising. In 2010, online display ad revenues increased by 33%, driven entirely by the growth in Facebook advertising. Facebook accounted for over 41% of all online display advertising in 2010. Online advertising expenditure across other media actually fell by 3%. 

- So which sectors have been losing out as marketers shift their budgets online?

Well, it’s not TV, which has proven to be exceedingly resilient. TV advertising revenues enjoyed their best year last year since 2005, buoyed by the World Cup, and TV still commands 26% of overall spend (compared to 25% in 2005).

The main losers have been newspaper and magazine advertising. The former is down from 30% of overall spend in 2005 to 21% in 2010 and the latter down from 12% to 7% in the same period.

UK_Advertising_Expenditure_by_Category

Given the sharp falls in circulations seen by newspapers in particular, these falls in spend are hardly surprising. What is frustrating for the publishing industry is that they haven’t been able to reap the full benefit of the growth in online display advertising as Facebook has stolen their thunder. It’s no wonder that the advent of the tablet computer is seen by many in the industry as a means to claw back not only subscription revenues but ad revenues too.

- So are mobile ad revenues growing as fast as publishers would like them to? Well, they’re growing rapidly, but from a very small base.

Mobile advertising revenues almost doubled in 2010 from £36.7m to £83m but the mobile advertising market ended the year only 2% of the size of the overall internet ad market.

Search based advertising drove most of this growth from a volume perspective, growing by 172% in 2010 and growing its share of overall mobile marketing from 54% to 66%.

Mobile display advertising may be losing share, probably due to the limitations of screen size when viewing advertising on mobile phones in particular, although ads do dominate more page real estate than their PC-viewed competitors.  The growth of the tablet market, both through the established market leading iPad and new entrants such as the Kindle Fire may do something to redress the balance.

The other interesting fact about mobile advertising is that its client base is becoming broader. A discipline dominated by the entertainment and media sector, accounting for 66% of spend in 2009, is now much more diversified with sectors such as Finance, Consumer Goods and Automotive seeing significantly increased spends.

Top_5_Mobile_Advertising_Sectors

In general, Ofcom’s report shows that brands are still probably more wedded to ‘old media’ than perhaps they should be, particularly premium and luxury brands whose affluent consumers are more likely than the mass of the population to be consuming their media online, be it via their PC or mobile device. Progressive brands such as Burberry are reported to be as spending as much as 60% of their on digital – well above the average.

But offline media still has a role to play in delivering impact, tangibility and in being ‘interruptive’ in a way that consumers are accustomed to and comfortable with.

It’s not all about conversion at the bottom end of the purchase funnel – offline media can play a vital and very effective role in driving prospects into the funnel in the first place. The key is to understand your audience, what media they consume and how, understand your product and the best environment in which to showcase it and understand exactly what your competitors are doing. Of course, collecting data on what is driving sales is key – but as you’re likely to be recording only what is happening at the sharp end of the purchase funnel it’s just one of the factors you should be taking into account.

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By: Graham Painter

  • Aug
  • 24

Latest ABCs – Home Interest Magazines

BBC_Homes_and_AntiquesFancy a bit of DIY? Doing up your house or garden? With the recession, the property market has seen a lot more home owners making the most of what they have, instead of upsizing to bigger and better houses.

Home interest titles, on the whole, have not fared too badly – compared to the women’s weekly market you would think that they were the Linford Christie of the magazine world. Perhaps people are generally more interested in cushion covers and the latest antique craze as opposed to who’s just had an affair with a footballer’s wife?

According to the Audit Bureau of Circulations (ABC) figures for January to June 2011, BBC Homes & Antiques, part of BBC Worldwide, had an average circulation of 58,701 in the first six months of 2011 – up 6.5% year on year, but a decline of 3.7% when compared to the final six months of 2010.

BBC Gardeners’ World reported a circulation of 265,328, up 2% year on year, making it the biggest magazine in the group. When compared to the final six months of 2010, the circulation increase was a massive 24.9%.  The circulation growth can be partly attributed to its March redesign, offering the right sort of value and growth in subscriptions. But surely the real reason is the growing love for Alan Titchmarsh? I struggled to find an issue without him on the cover.

Home_Interest_Magazine_ABCs_Jan_to_June_2011

The news will be welcomed by private equity firm Exponent, which confirmed a deal with BBC Worldwide, buying all non-BBC branded magazines and the rights to publish BBC-branded titles, in a £121m deal earlier last week.
 
Country Living, part of the recently formed Hearst UK, reported a circulation of 206,027 in the first six months of this year, up 0.9% year on year and an increase of 0.1% when compared to the final six months of last year. However, Country Living, like many other magazines in the sector, actually reported a decline in actively purchased copies. Country Living’s actively purchased figure was 167,041 during the half year, down 3.2% year on year and 3.1% on the period. Perhaps those pretty pastel covers are no longer cutting it on the competitive shelves of WH Smiths?

Ideal Home, owned by IPC Media, reported an average circulation of 205,778 in the first six months of 2011, an increase of 0.1% on the same period in 2010 and up 1.4% from the final six months of 2010. The title reported an actively purchased figure of 197,801, down 0.6% year on year, but up 1.6% period on period and significantly higher than its competitor, Country Living.

Among the other IPC brands there were consistent gains, Homes & Gardens had a circulation of 137,812 in the first six months of 2011, up 1.2% year on year and 0.4% on the period. Living etc reported a circulation of 97,098, up 4.8% year on year and 0.6% on the period, and Country Homes and Interiors had a circulation of 92,563, up 2.7% year on year and 2.6% on the period. 

Condé Nast saw its home title, House & Garden drop -2.7% YoY, but increase by 0.16% PoP. With a circulation of 127,260 it’s certainly not one of the highest circulating in the home interest sector.

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By: Carrie Millard

  • Aug
  • 24

Latest ABCs – Men’s Lifestyle Magazines

Shortlist_MagazineFor the last couple of ABC releases there has been a lot of doom and gloom, in particular for the men’s lifestyle sector, and unfortunately it isn’t looking good yet again. The market was down 4.4% overall on this time last year and the more premium leading titles were also badly hit.  

Starting off with the worst of the injured, at the lower end of the market we saw Bauer-owned Zoo and IPC’s Nuts dropping respectively 32% to an average circulation of 54,318, and 22% to 114,019. With Nuts recent re-launch not being truly reflected in this recent circulation audit there is hope that next period will see a retrenchment, but this is a very optimistic point of view.

FHM took another considerable drop this period with a 19.2% decline, taking the circulation down to a very meagre 155,557. There is a lot of pressure on the incoming editor Joe Barnes, previously of Front magazine, to turn round the fortunes of this once very successful magazine.

Mens_Magazine_ABCs_Jan_to_June_2011

Clinging onto the top spot for the biggest selling men’s magazine in the UK is Men’s Health. Unfortunately it does seem that they are losing their way slightly. The magazine has previously bridged the gap between health and fashion very successfully, but it was clear in the SS11 Guide to Style in Men’s Health that their fashion offering was somewhat lacking. Even though the AW11 Guide to Style was an improvement there is still a severe lack of any top international fashion advertisers. It is therefore not surprising that they have seen an 11% loss year on year bringing them down to a circulation of only 218,368 a month. A depressing circulation when compared to the highest selling women’s lifestyle magazines which are currently circulating at double this. 
 
There were rays of light for the remainder of the men’s lifestyle publishers in the health sector, indicating that men’s interest in health and fitness continues to grow. Dennis Publishing owned Men’s Fitness reported a year-on-year circulation uplift of 1.7% up to 69,264, while River Publishing’s Healthy for Men was up 7.4% to 60,499.

The two leading upmarket men’s titles, GQ and Esquire, didn’t experience major moves either way. The ‘metrosexuals’ out there are holding this market up with their unwavering need for a monthly intake of high-end culture and fashion. Keep your eyes peeled though as  it will definitely be interesting to see how Esquire will fare in the next ABC’s following its re-vamp in June, which many thought took the title to a more accessible, mass level.

Stealing the show once again were the free titles, or ‘freemiums’ as they are now called. ShortList and Sport both continued to see a positive year-on-year increase. With ShortList recording a distribution of 523,665. The freemiums are really holding their own in this sector and are becoming a very effective way of reaching a male audience through print.

It is worth mentioning the effect of the rise of the tablet and mobile device, especially in the context of men’s lifestyle publications. There are a handful of titles which are already taking the first steps into the world of digital editions. Although the initial auditing base is still very small, evidence from the US does show that the packaging of print and digital access subscriptions is starting to make a difference to men’s reading habits as more and more turn to tablet devices for their reading consumption. This is where the UK market is possibly missing out – just take a look next time you are on the tube to see how many men are actually reading from a tablet or mobile in comparison to print. 
 
So, with some titles posting double digit declines in the men’s lifestyle sector the inevitable question is whether this is the end for the paid for ‘lads mags’? The future, we predict, will see a long life for the ‘freemium’ magazines and a strong shift into digital for the traditional paid for magazines.

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By: Lucy Jennings

  • Aug
  • 24

Latest ABCs – Women’s Lifestyle Magazines

glamour_magazineThe women’s market as a whole wasn’t affected too acutely, the sector overall was up 1.1% year on year (YoY) and 1.5% period on period (PoP).  However this is not representative of the mainstream women’s lifestyle set that apparel, footwear and accessories advertisers pour millions of pounds into each year.  Looking at a concentrated base, only 10 of the mainstream monthly and weekly women’s lifestyle titles posted YoY increases to their circulation and far more posted sizeable decreases.

Replicating the retail sector, the high end fashion magazines continued to outperform those with a more high street focus.  Aligning itself further with the high fashion set, Red posted  its 4th consecutive ABC and reached its highest ever circulation of 231,160, a rise of 0.48 YoY.  Newly gained sister titles Elle and Bazaar posted small increases – although upon further investigation this news should have been a little less sugar coated.

ABC certificates are used alongside other tools as currency for media agencies, so it’s predictable that magazines have been quick to obscure data that would have a negative effect on trading.    Newstrade and single copy sales are always the best indicator of how a magazine is performing and in the case of Bazaar’s modest increase, as with many other titles, the statistics that aren’t so widely published are more in line with the disappointments of the wider of the women’s market.  YoY UK & Republic of Ireland sales have in fact dropped by over 4%. The publicised rise is made up by the increase in sales of the Rest of the World copies.  Bazaar is by no means the only title which makes use of this kind of manipulation, perhaps having been slightly unsettled from their pedestal, it’s a practice Vogue are also adopting.        

Womens_Magazine_ABCs_Jan_to_Jun_11                                                    

For the leading publishers in the young women’s set, there are very differing stories.  Condé Nast’s Glamour has not only retained its position as the largest young women’s fashion and lifestyle monthly, increasing its circulation by 0.73% YoY to 530,060, but it has also extended its lead on the nearest competitor, the newly formed, in the UK, Hearst Magazines’, Cosmopolitan, which for the first time experienced a drop in circulation to fall below 400,000.  Elle Dolphin the newly appointed Publishing Director, previously from Grazia, will undoubtedly have her work cut out to reclaim the lost market share.  Further woes hit Hearst with the continuing decline of Company, which posted its third successive decrease, falling by 17% for Jan-June period.  In the last 18 months a quarter of the readers have departed the title, further evidence that Company is being squeezed out of a tough market.

Perhaps the least surprising news with the volume of magazines in the sector and the recent closure of She, was that the ‘middle-youth’ titles felt the sharpest declines. Marie Claire, Psychologies and Easy Living have all felt the pinch.  Whereas those hitting the older more discerning lady, namely Women & Home and Good Housekeeping proved to be more resilient.

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By: Karen Stephenson

  • Aug
  • 10

Conde Nast Launches Tatler.com

tatlerUpmarket women’s glossy Tatler has always been the conspicuous absentee from Conde Nast’s stable of websites. That situation was rectified last week with the launch of Tatler.com.

However, the new site – which replaces a static subscription site – offers a limited range of content.  Visitors can get full access to the most recent copies of Tatler’s famous guides – specifically those for Travel, Spas, Restaurants, Schools and Hunting/Shooting/Fishing. They can also browse pictures from the latest society parties on the ‘Bystander’ tab and look at a synopsis of the current magazine and sign up for a digital subscription.  In addition, as the latest edition includes an augmented reality application from Holition allowing readers to ‘virtually’ try on £10m worth of jewellery, there’s the option for readers to download this software from the site.

Websites are always a tricky challenge for magazine publishers – they need to provide enough content to entice visitors so they can generate advertising revenue but not so much that people don’t feel they need to buy the magazine.

This first iteration of Tatler.com is a very cautious first step, and as a result doesn’t really offer enough to draw visitors in. Laurent Perrier is the site’s launch sponsor for the first month but we don’t feel the site will draw enough of a following for many advertisers to follow their lead in the coming months.

There are plans to expand the content offering in future, so don’t rule Tatler.com off your media plans just yet. But we’d suggest waiting until the site has both the content and the visitor numbers to justify your investment.

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By: Carla Burgess