Magazine Seminar Keynote: Press director predicts 15% ad decline this year
Carat’s press director Dominic Williams predicts an ad revenue decline of as much as 15%, saying that the industry needs to work harder to maintain revenue.
Speaking on the panel at MediaTel Group’s ‘Future of Consumer Magazines’ seminar this morning, Williams said he expects the market to fall lower than previously forecast – Group M predicted an 8.5% decline for consumer magazines in 2009 and Billetts predicts an 8% to 10% drop – which he thinks should be a wake-up call for the industry.
However, fellow panellist Stevie Spring, chief executive of Future Plc, said she is very optimistic about the magazine industry and argued that a 7.6% decline in 2008 and the 8.5% drop forecast this year simply falls in line with the wider economic downturn.
Panellist Ray Snoddy agreed: “The recession is affecting every industry so you can’t just look at the last few months, you need to take an historic view. There have been cut backs and purchasing is down but falling by 8% isn’t bad given the wider economy.”
There has also been growth in some sectors and certain magazines prove popular in times of a recession, such as gaming, music and TV listings, according to Spring and panellist Evelyn Webster.
Webster, who has recently been promoted as IPC’s chief executive, believes the industry is in “good shape” and claims it is positive because it “doesn’t rely on one revenue stream”.
“It’s dangerous to generalise, you have to look at each category separately. Some segments have performed well, such as Women’s Weeklies, which has experienced five-year growth, but is naturally retracting now.
“Some titles are challenged due to the recession but others are performing well, such as TV listing and specialist titles. Magazines are valued by consumers and are affordable treats,” she added.
However, the majority of panellists agreed that publishers need robust strategies in order to cope with the recession.
Williams said the industry needs to get behind magazines to push the medium to advertisers – “We’re constantly fighting for budgets now and advertisers want to know why print should be on the schedule,” he said.
“We need the PPA’s support as budgets are down and we have to justify magazine spend to clients. The PPA needs to show presence and support to the industry as soon as possible, to back us up, otherwise we’ll miss the boat,” Williams added.
Spring agreed, adding: “The industry needs to collaborate – the magazine industry is a unique environment to advertiser in. Consumers are loyal and there are lots of creative opportunities. We need to fight our corner and remind people of the basics.
“I am an absolute believer in the power of print advertising but we need to work together now and make sure we don’t get caught up in competition.
“There are a massive opportunities for magazines in this kind of environment. We need to make the most of the tough times and try new things, be creative, as we’ve got nothing to lose.”