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Magazine Ad Revenue Increases, Total Pages Decrease

Tuesday, October 16, 2007

Press release from the issuing company

New York, NY (October 16, 2007)—Total magazine rate-card-reported advertising revenue for the first three quarters of 2007 (January through September) increased 5.6% compared to the same period last year, closing at $17,911,515,303, according to Publishers Information Bureau (PIB). Ad pages totaled 172,622, at -1.0% compared to January through September, 2006. Total PIB revenue for third quarter 2007 period increased 4.2% compared to last year, closing at $6,049,862,103.  Ad pages totaled 57,754, at -2.3% from July through September, 2006.
Analysis: January - September 2007 vs. 2006 (Year-to-Date)
Through the first three quarters of 2007, Drugs & Remedies held the top spot in PIB revenue, while Apparel & Accessories was the top category in pages.
Nine of 12* major advertising categories showed increases in spending: Apparel & Accessories (+6.7%); Direct Response (+2.5%); Drugs & Remedies (+9.9%); Food & Food Products (+16%); Financial, Insurance & Real Estate (+0.5%); Media & Advertising (+10.4%); Public Transportation, Hotels & Resorts (+5.1%); Retail (+13.2%); and Toiletries & Cosmetics (+10.9%). Page growths were seen in: Drugs & Remedies (+5.9%); Food & Food Products (+8.7%); Media & Advertising (+4.1%); Retail (+5%); and Toiletries & Cosmetics (+1.8).
Ad categories posted both PIB revenue and page gains due to growth in:
    * Drugs & Remedies: ads for medicines and proprietary remedies; fitness and diet programs; medical equipment
    * Food & Food Products: ads for prepared foods, confections and snacks; meat and produce
    * Toiletries & Cosmetics: ads for cosmetics and beauty aids; personal health and hygiene products
    * Retail: major department stores; shopping centers and catalog showrooms; branded apparel shops
    * Media & Advertising: a broad range of media and entertainment vehicles, including film, TV, newspapers, magazines and books
Analysis: Third Quarter 2007 vs. 2006
During the third quarter period of 2007 (July through September), Toiletries & Cosmetics ranked first in PIB revenue, and Apparel & Accessories registered the most ad pages.
Eight major ad categories registered ad revenue gains: Apparel & Accessories (+5.5%); Direct Response (+2.7%); Financial, Insurance & Real Estate (+8%); Food & Food Products (+23.9%); Media & Advertising (+8.4%); Public Transportation, Hotels & Resorts (+3.2%); Retail (+9.4%); and Toiletries & Cosmetics (+15.2%).  Increases in pages were seen in: Apparel & Accessories (+0.2%); Financial, Insurance & Real Estate (+1%); Food & Food Products (+12.8%); Media & Advertising (1.3%); Retail (+3.5%); and Toiletries & Cosmetics (+5.3%).
Within the third quarter, six ad categories posted both PIB revenue and page gains due to growth in:
    * Apparel & Accessories: ads for ready-to-wear clothing; accessories; jewelry and watches
    * Financial, Insurance & Real Estate: ads for credit card companies; banking institutions; financial services
    * Food & Food Products: ads for ingredients, mixes and seasonings; prepared foods; dairy, meats; confections and snacks
    * Media & Advertising: ads for broad range of media and entertainment vehicles, including film, TV, newspapers, magazines and books
    * Retail: ads for department stores; ‘off-price’ retailers (that sell discounted designer brands); home improvement retailers; a range of branded apparel shops
    * Toiletries & Cosmetics: ads for cosmetics and beauty aids; personal health and hygiene products
“Year-to-date, magazines have benefited from the boost in spending from top categories Toiletries & Cosmetics, Drugs & Remedies, and Food & Food Products, with support from Retail and Media & Advertising,” said Ellen Oppenheim, Executive Vice President/Chief Marketing Officer, Magazine Publishers of America.
She added, “Within the third quarter, Food & Food Products registered the highest gains in both ad revenue and pages.  We were also pleased to see the uptick in pages in Financial and Apparel, after showing softness in previous quarters.
“Unsurprisingly, economic conditions that affect consumer confidence—from fluctuating gas prices to a challenged real estate market—continue to influence advertiser spending in Automotive and Home Furnishings & Supplies, and even the Real Estate segment of Financial, Insurance & Real Estate.  In addition, legislative scrutiny over pharmaceutical approvals and advertising may have had some bearing on the decline in Drugs & Remedies during the third quarter, although the category remains the top ad revenue producer for magazines this year.”

 

 

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