Although there was still a decline in 2013 (-0.7 per cent compared to 2012), in 2015, the magazine publishing industry will reverse years of decline to record 0.2 per cent year-on-year growth as overall digital gains outweigh falling print revenue. In 2016, total magazine revenue will reach US$97.3bn, up from $97.1bn in 2013.
The executive summary from the annual Trends report, now in its 20th year shows that digital magazine circulation revenue will see the fastest growth. Global digital magazine circulation revenue will rise at 43.4 per cent year-on-year reaching $5.2bn in 2016. As companies see more success in turning digital magazine consumption from free-of-charge websites to paid-for digital editions, digital will move from accounting for four per cent of total consumer magazine circulation revenue in 2013 to 11 per cent in 2016.
The report is compiled by FIPP and contributions from industry experts include ZenithOptimedia, PwC and regional and local associations, publishers and agencies. It also includes the FIPP monitor of cross-border launches. Data and analyses are reported country-by-country, regionally and globally.
Currently advertising is centred on magazine websites, but, as digital circulations increase, electronic editions will become increasingly popular for advertisers. In 2013 total digital advertising accounted for $8.4bn, 17 per cent of total advertising revenue. Global digital magazine advertising revenue will be $13.4bn in 2016, which means more than a quarter of total advertising revenue (27 per cent).
Emerging economies such as China, India, Russia and South Africa will see the fastest growth in B2B magazines. As businesses in all types of economies look to grow and increase market share, both advertisers and readers will find their way towards B2B magazines and therefore increase total revenue.
Other findings include
- South Africa’s ad revenue in 2013 increased by 7.5 per cent and will do so in the next few years with an average annual growth of 8.2 per cent to $4,848m in 2016
- With a share of 28 per cent, Asia Pacific is the second largest adspend region of the world.
- In 2016 the Asia Pacific region will become an even bigger player with 30 per cent of total advertising revenue (US$170,587 million), closing in on North America which will have a total share of 35 per cent
- China will be the biggest market by 2016 with a market share of 33 per cent, followed by Japan with 27 per cent market share
- In 2016 the Asia Pacific region will have 30 per cent of total advertising revenue, closing in on North America which will have a total share of 35 per cent
- With a share of 91 per cent, print is still a strong revenue driver in Europe in 2013
- In Europe in 2016 digital will almost double its share to 17 per cent
- The outlook is positive for Europe with ad expenditure forecast to shrink by just 0.5 per cent, followed by recovery to 2.6 per cent growth in 2015 and 3.6 per cent growth in 2016
- The forecast is very positive in Latin America with a total growth of 13 per cent in 2016 to a total of US$1,773 million
- For North America the forecast for 2014 and beyond shows that the total advertising revenue in the region will grow on average 4.5 per cent a year to a total of $203,125m in 2016 and therefore will remain the number one region in the world
- In 2013 B2B digital revenue in North America (both advertising and circulation) has a share of 20 per cent ($1,228m) and in 2016 31 per cent ($2,010)
FIPP World Magazine Trends 2014-15 is available now in print and digital formats with the Excel edition (raw data) to be published in early January 2015.
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