Monday, September 08, 2008

Magazines feel economic squeeze on ads

Until recently, magazines managed to avoid the ad revenue plunge that plagued Newspapers, but according to the Publishers Information Bureau, the number of magazine ad pages dropped 7.4 percent (6.3 percent at news stands)  compared to the first half of 2007.

An important factor to remember is the economy's squeeze on industries with heavy readership bases, such as the auto industry, where faltering numbers forced companies to slash spending across the board , including magazine ads. Also, many subscribers may have ditched their copy of Motor Trend because their own budgets have changed. Instead of flipping through reviews of hot new sports cars,the average Joe is simply trying to afford a tune-up and his next fillup at the gas station.

The discouraging ad numbers sparked  the Magazine Publishers of America's"Under the influence of magazines" campaign, which provides third-party  research figures , some general and some specific, which claim that Magazines are No.1 in:

• Driving online search in the 18-44 year old market
• People were 2x as likely to visit a website after seeing a magazine ad.
• Seeing a magazine ad increased web traffic by more than 40%.
• In driving brand favorability. 2x the impact of TV and 4x the impact of online.

 Two of the claims that caught my eye were - 2X as likely to visit a website after seeing a magazine ad and increased web traffic by 40%. Those two "facts" were derived from a study by a marketing research firm known as marketing evolution, which used two control groups- one group that was exposed to mag advertising, and one that wasn't. However, the study doesn't specify if or how the other group was informed of the company's site, so how can we consider  the stats valid?

There is one distinct advantage I'll grant magazines- subscriber loyalty. Many longtime subscribers develop a close bond to their favorite publication, and may be more likely to trust the ads within that mag than a banner ad on a random site. The mag readers can also easily refer back to a page when they need a good reference point for a product or service.

Before I bought an Iphone,I would often hear or see an interesting website, only to forget it ten seconds later, and for those who don't have an Iphone or Blackberry, it's easy to grab that copy of Sports Illustrated from the coffee table and find the site for that new shoe company or sports drink.

Ironically, the solution creates a new conflict- To increase appeal to their clients, mag publishers and advertisers know that their ads must drive readers to the internet, and away from their own media. As the demand for hard copies decreases, mags should expand their online content to provide supplemental info on the hard copy articles, web extras and exclusive,interactive content.

Posted By Matt O'Hern at 08:56 AM
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