Advertisers to Chase Elite Consumers As Magazine Market Shifts
The traditional magazine industry is in the midst of an epic shift with respect to revenue. Traditionally, about 75% of revenue came from ad sales. But, with so many people now opting to read their favorite publications in digital format, especially on tablets, the numbers are changing.
A recent Wall Street Journal article noted that some publishers are boosting the cost of their digital magazines as a way to generate more revenue and stem the red ink that may be flowing as a result of deep discounting for subscriptions. Other publications are looking for creative ways to bundle print and digital subscriptions. While publishers juggle both readers and advertisers during the move to digital, analysts say only about 10% of magazine circulation will be digital by 2015. Meanwhile, magazine publishers suffered an ad page drop of 8.2% last year.
To improve their situation, savvy publishers are developing more intriguing content in multiple formats for digital. The good news is that tablet owners are an especially attractive market for both publishers and advertisers. These consumers , 66% male and 54% Millennial, like what they are reading and are more apt to renew their digital subscriptions. These consumers also have higher than average incomes and are better educated. These are exactly the kind of consumers that many advertisers are seeking to reach.
For now, publishers are likely to be charging more for popular digital subscriptions and delivering a quality audience to advertisers at the same time.
To learn more about Magazine Ad Responders, check out the Audience Interests & Intent report available at the Research Store on Ad-ology.com.[Source: Hagey, Keach. Magazines Cross the Digital Divide. Online. Wsj.com. 18 Jan. 2013. Web. 29 Jan. 2013]