Total magazine rate-card-reported advertising revenue for the first half of 2008 closed at $11,554,569,406, down 3.1% compared with the first half of 2007, according to Publishers Information Bureau (PIB), Magazine Publishers of America reported.
Ad pages during the first half totaled 108,924.13, down 7.4% compared with the first half of 2007.
Total PIB revenue for the second quarter of 2008 closed at $6,297,123,700 – a decline of 4.7% versus the second quarter of 2007. Ad pages totaled 58,744.77, down 8.2% compared with the second quarter of 2007.
Below, highlights of PIB’s analysis of the first-half results.
Sustained economic softness has negatively affected magazine advertising across a range of categories in the first half of 2008, particularly sensitive Auto sector (1H revenue, -18%), as well as Toiletries & Cosmetics (-6%), Home Furnishings and Supplies (-9%), Apparel & Accessories (-3%), Direct Response Companies (-6%), and Technology (-15%):
Drugs & Remedies (1H revenue, -11%) advertising across media, subject to intense regulatory scrutiny in the earlier part of the year, saw a drop in PIB revenue and pages as well, particularly in the second quarter of 2008?(2Q revenue, -19%):
Bucking the trend in the first half were Food & Food Products, Retail, and Public Transportation, Hotels & Resorts:
- Beverages, meats, prepared foods, and confectionery spending bolstered Food & Food Products (ad revenue up 15% in the first half, pages up 7%).
- Retail (revenue, 11%; pages, 2%) got a boost in spending from discount department and variety stores, as well as shopping centers, particularly in Q2.
- Public Transportation, Hotels & Resorts (revenue, 5%; pages, 0.5%), which registered a slight decline in pages in Q1, rebounded in Q2 due in part to increased investment from airlines, hotels and both domestic and international destinations.
“Recent reports indicate a downward trend in overall ad forecasts for 2008, which is reflected in PIB first half numbers for magazines,” said Ellen Oppenheim, EVP and CMO, Magazine Publishers of America.
“The magazine ad trend this year is similar to the last two drop-offs – in the early 1990s and earlier part of this decade – when PIB revenue and pages declined, but later rebounded as the ad market picked up.”