Advertising Revenue Declines Expected For Print Media
Posted on 9/25/2013 by Jim Pickerell | Printable Version |
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The MAGNA GLOBAL Advertising Forecast released early this year reported that the Global advertising spend in 2012 was $495 billion up 3.8% from $479.9 in 2011. The U.S. was the largest market with $153 billion in revenues. Japan, China, Germany and the UK complete the top five.
However, a huge percentage of that revenue was for television advertising that does little to benefit the creators of Pre-Shot (stock) images. Worldwide, the big users of stock imagery – newspapers and magazines – saw decline in revenue (-4.5%) for newspapers and (-5.7%) for magazines. For image creators, this points to a decline in imagery budgets, as well as a decline in the number of images used.
In the U.S. market in 2013 digital advertising revenues are expected to increase by +11.6%, while newspapers revenues will decline by -6.7% and magazines ad sales will fall by -7.8%. On a global basis, 2013 will be a seventh consecutive year of decline for newspaper ad revenues.
Marketers are gradually embracing mobile advertising as a marketing opportunity. It already represents $6 billion globally. MAGNA GLOBAL is predicting that the mobile format will grow to $24 billion by 2017, reaching 14% of global digital advertising and 4% of overall advertising revenues”.?
To deal with this shift it is expected that marketers will not grow budgets, but rather switch from traditional media towards digital media to follow their consumers. Digital marketing is also cheaper. In a MAGNA GLOBAL Media Cost Study in 2012 the cost-per-thousand impressions (CPMs) globally for newspapers was $39 and $21 for magazines. That was 5 times the cost of an online display ad.
In 2012 the weakest markets are in Europe, and particularly Southern Europe where there are double-digit declines with Greece down (-28%). North America is in relatively better shape where advertising revenues increased by 4.2%. But, of course a large percentage of that went to TV in an Olympic and Election year.
The strongest markets in 2012 were Russia (+10.4%), Turkey (+8.4%), China & India combined, an average (+8.4%), Brazil (+13%) and Argentina (+22%).
Copyright © 2013
Jim Pickerell.
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