Magazine PIB Advertising Pages Tumble, But Revenue Up 6.1% First Half 2007
Thursday, July 19, 2007
Press release from the issuing companyNew York, NY (July 18, 2007) -- Total magazine rate-card-reported advertising revenue for the first half of 2007 increased 6.1% compared to the same six-month period last year, closing at $11,838,362,224, according to Publishers Information Bureau (PIB). Ad pages totaled 114,659.11, essentially even at -0.5% compared to first half 2006.
Total PIB revenue for Q2 2007 increased 5.2% compared to last year, closing at $6,549,061,037. Ad pages totaled 62,298.49, at -1.9% against April through June 2006.
Analysis: First Half 2007 vs. 2006
From January through June of 2007, eight major advertising categories saw an increase in spending compared to last year: Drugs & Remedies; Toiletries & Cosmetics; Food & Food Products; Apparel & Accessories; Direct Response; Media & Advertising; Retail; and Public Transportation, Hotels & Resorts. Drugs & Remedies; Food & Food Products; Media & Advertising; and Retail also saw page gains compared to first half 2006. (Twelve categories are the most significant contributors to PIB revenue, comprising more than 85% of total advertising spending.)
Drugs & Remedies, experienced double-digit PIB revenue (17.1%) and page (11%) growth in first half 2007. Increase in the category can be attributed partly to both existing and new advertisers, the majority of which were advertising medicines and proprietary remedies, as well as eyeglasses, medical equipment and supplies.
Food & Products, the third top category by PIB revenue, posted an improvement of 12.2% in dollars and 7% in pages. Advertising for prepared foods, fruits as well as confections and snacks drove a good part of the spending within this category.
Retail, which registered the second highest increase in PIB revenue (15.3%) and posted gains in pages (5.6%), saw a boost in spending from department stores, drugstores, retailers that focus on home improvement and décor, and branded apparel shops.
Analysis: Q2 2007 vs. 2006
From April through June 2007, eight categories posted PIB revenue increases: Toiletries & Cosmetics; Drugs & Remedies; Food & Food Products; Apparel & Accessories; Media & Advertising; Retail; Public Transportation, Hotels & Resorts; and Financial, Insurance & Real Estate. Toiletries & Cosmetics; Drugs & Remedies; Food & Food Products; Media & Advertising; and Retail also posted gains in pages compared to Q2 2006.
Toiletries & Cosmetics was the number one magazine advertising category by PIB revenue in Q2 2007. I ranked first in both April and May, and ranked second in June. A boost in advertising for cosmetics and beauty aids and personal hygiene and health products accounted for the bulk of the 9.7% growth in spending in Q2.
Within Q2, Food & Food products saw an influx of advertising from prepared foods and confections (as it did for the full first half), but during this particular time period, beverages was another top ad-spend subcategory. Food retained its spot as third highest ad category by PIB revenue every month in Q2.
“Magazine advertising continued to hold its own through the first half of 2007, thanks in part to the sustained growth in the Drugs & Remedies, Retail and Food categories, which ranked as the top three ad categories in terms of PIB revenue growth in the first half of the year,” said Ellen Oppenheim, Executive Vice President/Chief Marketing Officer, Magazine Publishers of America.
She added, “The targeted nature of magazine advertising often serves as a window on larger economic trends, and first half 2007 magazine ad spending data does provide broader insights. For example, declines in automotive and home ad revenues are consistent with economic softness in those industries. Magazines are the first medium to report, and often they portend softness in other media. In the first quarter, when magazines reported declines in Auto spending and paging, magazines’ share of Auto’s ad dollars rose, as other media’s ad revenue loss was more significant.”
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