The Magazine Media Handbook 2007 1 - Interactive Digital Media

The Magazine MediaHandbook 20071

ForewordWelcome to the first edition of the new look, new name Magazine Media Handbook. Calledthe Magazine Handbook in its previous incarnation, this new edition embraces and analysesthe magazine business in an evolving communications landscape.Looking at the three distinct pillars of consumer, business media and customer publishing,the handbook examines all aspects the magazine industry from the latest data available togrowth and development, subscriptions, ABC figures and multi-platform publishing. With thispublication, we aim to appropriately represent and aid our whole membership.If you would like further bespoke information or have suggestions on how we can make thisbook even more relevant to your business, please contact the PPA research and informationteam.Ian LocksChief Executive, PPAFor further information, please contact:Amina Ymer - Marketing, Research and Information ExecutivePhilip Cutts – Marketing DirectorColin Robinson – Planning DirectorEditorsAmina YmerJamie GavinThe Magazine MediaHandbook 20072

IntroductionThe evolution of magazine mediaAs magazines evolve and business media becomes recognised as one of the UK’s largerindustries, it is difficult to imagine a time in their 400 year history when there has beena period of more dramatic or rapid change.This vibrant and evolving industry gains in stature and confidence as it masters the artof multi-platform communication. We estimate the value of consumer magazines to bearound £7.2bn, and the business media industry – including magazines, to be valued at£18bn to £20bn, with customer magazines valued at around £800m.Magazines themselves – the printed ones – have continued to flourish in the lastdecade since the launch of the Internet. At least one new title is launched every day ofthe year and has resulted in raising total volumes of sales and of consumer spend onprinted products. Huge growth in volumes is coming from customer magazines asadvertisers identify how effectively magazines can build customer loyalty.Throughout the course of this book, we will examine all aspects of the magazinemedium, from analysis of the new platforms upon which magazine publishers nowincreasingly building their brands to full and complete data about the industry as awhole.The Magazine Media Handbook aims to pull together in one place all of the buildingblocks of this evolving business. The consumer, more so now than ever before, is incontrol and an understanding of this fact sit firmly at the heart of the publishers’programme as they find increasingly innovative and effective ways of deliveringcontent to meet consumers’ needs.The Magazine MediaHandbook 20073

The Magazine MediaHandbook 20075

Growth and developmentShare of the £7.2bn sectorThe past decade has been one of continued growth and development for the magazine industry.Indeed, this 400 year old medium has more than doubled in size over the last 15 years.The value of the total magazineindustry is now estimated at justover £7.2bn.Share of total turnoverThis figure can be broken downinto two sectors: consumer, andbusiness media.The past decade has alsowitnessed the emergence of a subset of customer publishing.Businessmedia 49%Consumer41%Growth across allsectorsSubstantial growth continues tooccur across all three sectors interms of number of titles,circulation, readership andrevenue.Customer 10%10%(Business 7%, Consumer 3%)Source: PPA/APA- various, Nov 2007.Increasingly however, publishers are leveraging their brands in other media.A diverse programme of additional revenue streams including online products( e.g. directories and newsletters), events, exhibitions, television and radio channels, and agrowing number of additional services provide an expanding marketplace for consumers andadvertisers alike.The Magazine MediaHandbook 20076

The £7.2bn sectorConsumer magazines £mAdvertising Sales 812Copy Sales 2,085Other 2003,097Consumer£3.1bnBusiness media magazinesAdvertising sales 1,016Copy sales 650Exhibitions 400Directories 830Others 4003,296Businessmedia£3.4bnCustomer magazines 788TOTAL£7,181mCustomer£0.8bnThe Magazine MediaHandbook 2007Source: Various, PPA, Nov 2007.7

A dynamic mediumNumber of titles - 10 year growthNo. of titles6,0005,0004,0003,0002,0001,00001997 1998 1999 2000 2001 2002 2003 2004 2005 2006Total number of UK magazine titlesYear19931994199519961997199819992000200120022003200420052006Consumer2,0852,1122,2202,3292,4382,7943,1743,2753,1203,1303,2293,3243,3663,4454,6074,6284,6505,1515,7135,5455,3425,2085,1085,1425,1085,113Source: BRAD, Nov 2007; APA estimatesConsumer Business media CustomerBusinessmedia4,5334,586CustomerNo data1,0211,1171,300The Magazine MediaHandbook 2007----------Source: BRAD, Nov 2007; APA estimates.Both the business media and consumersectors continue to show steady growth.According to the latest BRAD figures, themarket size – in terms of number of titles –experienced a 2.3 per cent growth lastyear.Wessenden Marketing solely monitorconsumer titles, and use a different metric,but they also find a 2.3 per cent increaseover the course of 2006, and charts a totalof 548 new launches across the consumersector.The customer sector saw an immense 16per cent growth in 2006, and a 9 per centgrowth in 2005.Last year also saw a sharp drop in themagazine “death rate”, from 544 magazineclosures in 2005 to only 267 in 2006,indicating a strong year of consolidationand development.8

A magazine for everyoneMeticulously targetedaudiencesThe growing number of titles beinglaunched for tightly defined targetaudiences reflects the increasing variety oflifestyle patterns and the trend towardsbusiness specialisation.Growth in number of UKmagazine titles 1997-2006Consumer41%Key magazine titles are, on the whole,owned by a handful of major publishingcompanies.Leading publishersConsumerLeading consumer publishers include BBCMagazines, Condé Nast, D C Thompson,Dennis Publishing, The Economist Group,Emap Consumer Magazines, FuturePublishing, Hachette Filipacchi, Haymarket,H Bauer, IPC Media, The National MagazineCompany, and Reader’s Digest Association.Business mediaB+P10%Source: BRAD, Nov 2007.On the business media side, the key players include CMP Information,The Economist Group, Emap Communications, Haymarket, Incisive Media, Informa Publishing,Reed Business Information and William Reed Publishing.CustomerThe main publishing agencies for customer magazines include Redwood, John Brown,Redactive Media, Haymarket, Cedar Communications and Publicis Blueprint.The Magazine MediaHandbook 20079

Consumer magazine explosionWith the range of media options available to consumers continuing to expand, thegrowth of the magazine industry in recent years can be easily overlooked. In the twelveyears since the dawn of the commercial internet in 1995:Consumer Expenditure onmagazines has increased by56%Ad spend on magazines hasincreased by52%The number ofmagazine titles hasincreased by55%Source: Advertising Association, 2007; BRAD, Nov 2007.The growing popularity of magazines is highlighted by the increasing number being sold eachyear. There were approximately 12,000,000 more copies of consumer magazines sold in 2006than there were in 1995 – an increase of 0.9 per cent. In the UK alone, almost 45 magazineswere sold every second of the year 2006.Total number of copies sold per year1,450No. of copies sold (m)1,4001,3501,3001,2501,2002000 2001 2002 2003 2004 2005 2006Source: Ad-Stats Yearbook, 2007.The Magazine MediaHandbook 200710

Consumer magazine explosionAverage cover price of consumer magazines350.0Avg. cover price (pence)300.0250.0200.0150.0100.050.00.01995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006WeeklyMonthlySource: Advertising Association (current prices), 2006.Because of consumer demand for magazines the balance of the business model forpublications has shifted from advertising to cover price. Consumers have becomeprepared to for higher quality and more choice. As a result consumer expenditure onmagazines has increased impressively.Annual consumer expenditure on magazines2,5002,0001,500£m1,00050001995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006Source: Advertising Association (current prices) 2006.The Magazine MediaHandbook 200711

The business mediaexpansionThe UK’s business media industry is worth an estimated £17.32bn. The sector is dominated byprint publications, with business magazines and journals constitutingapproximately one fifth (£3.3bn) of the entire business media market.The business media product mixAudio/visualCredit reference agenciesBooksDire ctorie sNon-specified sectorsDirect Marketing22025128640011631402191719332361336140230 500 1000 1500 2000 2500 3000 3500 4000 4500Revenue (£m)Source: Business + Professional Media, 2005, NOP, 2005.The online expansion of traditional print publications, which remain at the heart of the businessmedia communications mix, has allowed publishers to leverage their magazine brands across avariety of different platforms and develop even stronger relationships with the market.Content is now, more then ever, viewed as the most important commodity, whether it isdelivered via print, face to face engagement, or electronically. The internet has become a vitaldistribution channel for publisher products, as consumers increasingly demand more choice inhow they receive content.The Magazine MediaHandbook 200712

The business of expansionBusiness media sales revenue by type (%)DisplayClassifiedPrint subscriptionsRecruitmentInsertsNewsstradeElectronic ProductsOnlineOther421097431124TOTAL100Source: Keynote Business Press Market Report, March 2007.New media products and services account for more than £1bn of the business media sector’srevenues. Display advertising is the largest revenue generator for business media publishers,representing 42 per cent of all sales.Magazine sales by type (%)Recruitment7%Print subscriptions9%NewstradeInserts 3%4%Electronicproducts1%Online1%Display41%Cla ssifie d10%Other24%Source: Keynote Business Press Market Report, March 2007.The Magazine MediaHandbook 200713

Customer magazinesA Dynamic marketing toolThe Customer magazine sector is the fastest growing magazine sector in the UK, andis now worth an estimated £788 million. Turnover topps over £385 million,with a year on year growth of 10 per cent. Over the course of 2006, total ad spendincreased by 16 per cent.79 per cent of the population has seen acustomer magazine, and 78 per cent ofconsumers prefer communication via acustomer magazine than any othermarketing media.In many ways customer titles can beseen as a hybrid of the consumer andbusiness media magazine, combining thelook and feel of a newsstand title, withthe primary goal of communicatingbusiness and product information to aspecifically targeted, controlledreadership.The Magazine MediaHandbook 200714

The 25 minute mediumThe advantages of engraining company products and messages into a magazine titlemeans that companies can take advantage of the highly engaging and attractive magazinemedium to build up trust and awareness with consumers.Research shows that consumers spend an average of 25 minutes reading customertitles, and that nearly a quarter hold onto their customer magazines for over a month.Average time spent reading a customer title: 25 minutesUnder 5 mins0 5 10 15 20 25%5-10 mins10-20 mins20-30 mins30mins - 1hr1 - 2hrsMore than 2hrsSource: Millward Brown, APA, 2006.Key customer publishing sectorsOther 45%Retailing anddistribution 17%Financialservices 13%Charity 5%Media 6%Utilities and publicsector 7%Airline, train, ferry 7%Source: Millward Brown, APA, 2006.The Magazine MediaHandbook 200715

Generating salesPercentage sales increase delivered by customer magazines252120% Sales uplift15105850Automotive Retail FinanceSource: Millward Brown, APA, 2007.AutomotiveRetailFinanceTest673467Control642862% Uplift8215Average sales uplift = 8%Companies that have customer magazines as part of their marketing mix enjoy an averageeight per cent sales uplift. Retail companies with customer titles, such as Asda,Debenhams, and Sainsbury’s, enjoy a particularly fruitful return through the promotion oftheir products and in-store offers in their magazines.The Magazine MediaHandbook 200716

The Magazine MediaHandbook 200718

Consumer magazine sectorsNumber of magazine titles ineach consumer sectorSectorBuying & Selling 132Computing 56County, Town & Local Interest 305Education & Careers 207Entertainment & Leisure Guides 182Ethnic & Expatriates 86Food & Drink 53General Interest 70Health, Fitness & Beauty 87Home Entertainment & Electronics 12Home Interests 109Leisure Interests 477Men’s Magazines 101Motorcycling 40Motoring 176Music 98News & Current Affairs 136Outdoor Pursuits 96Personal Finance 16Sport 321Travel and Tourism 211Women’s Magazines 239Youth 217No. of titlesThe key strength of magazines lies in theirability to target, and in turn cater for, theneeds of their audience.There is a title for everyone, and no twotitles are the same – a rich diversityreflected by the extensive range ofcategories to be found in both theconsumer and business media sectors,and the number of different titles withinthem.Leading Sector Groups600500Number of titles4003002001000LeisureInterestsSportCounty, Town& LocalInterestWomen'sMagazinesYouthTable and chart Source: BRAD, Nov 2007The Magazine MediaHandbook 200719

Consumer magazinecirculation growth2005 advertising/circulation revenue shareCirculation72%Adve rtising28%Source: Advertising Association, (constant prices) 2006.Despite the increases in cover pricing and purchaser expenditure in recent years,advertising remains a key source of revenue for consumer magazine publishers. As thechart below highlights, the advertising/consumer spend share of magazine revenue hasremained fairly constant over the last ten years.Consumer magazine circulation andadvertising revenue (1997-2006)3,5003,0002,500£m2,0001,5001,0001997 1998 1999 2000 2001 2002 2003 2004 2005 2006Consumer expenditureAdvertising expenditureSource: Advertising Association, (current prices) 2007.The Magazine MediaHandbook 200720

Top 100 actively purchasedconsumer magazinesRankTitlePublisherJan-Jun2007Prd on Prd% changeJuly-Dec2006Year on Year% changeJan-Jun20061What's on TVIPC Media1,421,645-1.11,436,873-5.81,508,5952TV ChoiceH Bauer Publishing1,390,3762.81,352,0908.11,286,3853Radio TimesBBC Worldwide1,024,563-4.01,066,886-2.91,055,6674Take a BreakH Bauer Publishing1,009,795-0.51,015,010-5.91,073,1455Reader's DigestReader's Digest Association648,938-2.0662,417-4.7681,1436Saga MagazineSaga Publishing639,3168.0592,07517.8542,8607CloserEmap Consumer Media561,869-7.0604,149-3.7583,5248HeatEMAP Consumer Media542,280-7.5586,081-4.7568,8189ChatIPC Media499,626-4.6523,630-8.1543,95010OK! MagazineNorthern & Shell497,754-8.6544,4301.0493,01311NowIPC Media483,858-6.5517,383-8.4528,02712GlamourConde Nast Publications475,675-9.8527,317-7.8515,86713That's LifeH Bauer Publishing440,583-4.1459,281-9.6487,43214Pick Me UpIPC Media436,1504.6416,959-0.2437,18515New!Northern & Shell Magazines424,489-0.7427,686-0.9428,13316Good Housekeeping?416,200-6.7446,165-1.6422,90517Love It!News Magazines390,436-1.5396,185-0.7393,13118CosmopolitanThe National Magazine Company379,401-1.9386,8641.6373,36019WomanIPC Media358,957-5.0377,939-11.6405,95620TV TimesIPC Media352,482-6.5377,038-5.3372,31021Sainsbury’s: The MagazineNew Crane346,916-9.2382,268-1.2351,25122RevealACP Natmag342,1511.3337,6121.0338,87723YoursEmap Consumer Media341,852-10.2380,489-14.0397,48324Woman’s OwnIPC Media336,317-2.9346,360-5.6356,41325National GeographicMagazineNational Geographic Society334,5940.0334678-0.7336,851Source: ABC Concurrent Release, August 2007.The Magazine MediaHandbook 200721

Top 100 actively purchasedconsumer magazinesRankTitlePublisherJan-Jun2007Prd on Prd% changeJuly-Dec2006Year on Year% changeJan-Jun200626BestACP Natmag332,789-5.4351,798-5.9353,58627Woman’s WeeklyIPC Media332,337-4.5347,895-5.6352,05128BBC Good FoodBBC Worldwide318,897-6.1339,6343.2308,99529LookIPC Connect317,343N/AN/AN/AN/A30Woman & HomeIPC Media308,4531.3304,521-0.8311,06831Peoples FriendD C Thomson & Co307,167-2.8315,953-5.0323,44532Real PeopleACP Natmag304,211-0.8306,540-3.8316,06633PrimaThe National Magazine Co294,254-4.8309,204-6.6315,01934Hello!Hello! Ltd292,573-1.1295,796-0.2293,29335CandisNewhall Publications291,1570.0291,032-1.1294,31836FHMEmap Consumer Media285,256-17.1344,193-26.1386,06237TV EasyIPC Media284,867-2.9293,325-5.5301,57638BBC Gardeners’ WorldBBC Worldwide282,99321.6232,7012.3276,56239Marie ClaireEuropean Magazines277,613-1.9283,116-2.5284,60740NutsIPC Media273,681-5.5289,661-9.2301,57641DareRiver Publishing271,263N/AN/AN/AN/A42More!Emap Consumer Media258,466-3.4267,682-4.3270,12643CompanyThe National Magazine Co256,6071.3253,331-3.7266,34744Slimming World MagazineMiles-Bramwell Exec. Services255,0581.4251,4921.4251,66045Weight Watchers MagazineRiver Publishing250,2582.7243,7800.1250,01546BellaH Bauer Publishing245,048-21.4311,733-25.4328,33447StarNorthern & Shell238,405-1.6242,290-0.3239,14348TV QuickH Bauer Publishing224,799-8.7246,181-14.3262,17249Ideal HomeIPC Media220,9292.3215,874-3.5228,92350HealthyRiver Publishing220,023-2.1224,769-0.5221,099Source: ABC Concurrent Release, August 2007.The Magazine MediaHandbook 200722

Top 100 actively purchasedconsumer magazinesRankTitlePublisherJan-Jun2007Prd on Prd% changeJuly-Dec2006Year on Year% changeJan-Jun200651GraziaEmap Consumer Media217,6905.1207,12025.2173,89552RedHachette Filipacchi208,325-1.8212,1121.2205,87853Men’s HealthNatmag Rodale205,033-1.5208,1902.4200,16454TV & Satellite WeekIPC Media201,077-2.8206,865-4.7211,07055Inside SoapHachette Filipacchi198,1425.1188,4668.4182,73056Private EyePressdram197,952-0.1198,1340.7196,51157Puzzler CollectionPuzzler Media186,365-1.9189,961-1.8189,72758ZooEmap Consumer Media183,808-8.3200,416-18.4225,25359SugarHachette Filipacchi183,259-6.8196,684-6.2195,40360Easy LivingConde Nast Publications181,553-2.0185,206-3.1187,36361House BeautifulThe National Magazine Co177,154-2.2181,080-5.9188,33162BBC Top Gear MagazineBBC Worldwide171,5263.2166,1717.3159,84563Elle (UK)Hachette Filipacchi165,610-4.9174,186-2.8170,39164Country LivingThe National Magazine Co164,901-1.4167,290-0.6165,86065VogueConde Nast Publications164,834-1.0166,4932.9160,25266My WeeklyD C Thomson & Co163,709-12.7187,452-13.9190,04067EmpireEmap Consumer Media162,6802.0159,5343.3157,49568SheThe National Magazine Co160,02610.9144,25815.5138,57869Full HouseHubert Burda Media UK158,920-11.7179,893-16.5190,43670Doctor Who AdventuresBBC Worldwide155,02044.1107,55099.177,85271The Economist – UK EditionThe Economist Newspaper145,1054.5138,8949.7132,25072EveHaymarket Publishing134,051-10.2149,339-12.5153,25373Instyle UKIPC Media132,791-1.6134,932-10.9149,02374The WeekDennis Publishing129,7336.0122,41123.1105,34775NW (New Woman)Emap Consumer Media122,634-43.6217,249-45.7225,851Source: ABC Concurrent Release, August 2007.The Magazine MediaHandbook 200723

Top 100 actively purchasedconsumer magazinesRankTitlePublisherJan-Jun2007Prd on Prd% changeJuly-Dec2006Year on Year% changeJan-Jun200676BBC Good HomesBBC Worldwide120,7435.0115,017-5.4127,59177The Simpsons ComicsTitan Magazines119,720-11.0134,466N/AN/A78BlissEmap Consumer Media118,091-20.8149,134-42.9206,65179Psychologies MagazineHachette Filipacchi114,7179.4104,87622.493,75980Your HomeEssential Publishing113,74015.098,943-2.9117,11181Total TV GuideH Bauer Publishing112,3602.7109,37511.1101,16882SoaplifeIPC Media109,00312.397,09318.192,31983What Car?Haymarket Motoring Publications106,642-1.5108,216-9.2117,43384Time MagazineTime Warner Publishing106,4711.3105,0780.7105,76185Top Sante Health & BeautyEmap Consumer Media106,146-6.2113,168-16.5127,12386FirstEmap Entertainment105,9496.699,369N/AN/A8725 Beautiful HomesIPC Media103,9531.0102,8822.3101,60588QEmap Consumer102,812-8.6112,437-17.0123,92489LoadedIPC Media102,022-27.9141,526-39.0167,31190Top of the PopsBBC Worldwide100,8810.1100,826-14.7118,29691ZestThe National Magazine Co100,67910.191,4724.496,46792EssentialsIPC Media98,91437.671,90936.172,70193New ScientistReed Business Information98,7271.497,3425.293,82494deliciousSeven Publishing94,931-2.997,80915.482,29095Homes & GardensIPC Media94,6853.491,5952.992,02696ToyboxBBC Worldwide92,4001.591,003-22.3118,97497MaximDennis Publishing91,314-21.6116,463-28.3127,3789899GQToday’s GolferConde Nast PubicationsEmap Consumer Media90,460-2.792,99887,784Source: ABC Concurrent Release, February 2007.89,1655.784,369 -11.0100,1713.0100All About SoupHachette Filipacchi86,93812.277,463 17.074,284Source: ABC Concurrent Release, August 2007.The Magazine MediaHandbook 200724

Top 25 circulatingconsumer magazinesRankTitlePublisherJan-Jun2007Prd on Prd% changeJuly-Dec2006Year on Year% changeJan-Jun20061Sky the magazineNews Magazines7,034,3100.57,002,2323.56,798,4952Sky Sports Magazine (UK)News Magazines4,362,228N/A-N/A-3Sky Sports Magazine (UKedition)News Magazines3,767,906N/A-N/A-4Asda MagazinePublicis Blueprint2,805,0522.32,743,005-5.72,974,7935Tesco MagazineCedar Communications1,943,767-19.62,419,0831.01,923,9336Sainsbury’s Fresh IdeasNew Crane1,507,7662.31,473,8006.01,422,1027What’s on TVIPC Media1,422,486-1.11,437,650-5.81,509,5198TV ChoiceH Bauer Publishing1,391,7742.81,353,4368.11,287,7739The Somerfield MagazineRare Publishing1,201,700-3.51,244,71510.01,092,93610Radio TimesBBC Worldwide1,046,601-3.31,082,338-2.21,070,04211Take a BreakH Bauer Publishing1,018,423-0.81,027,013-5.91,082,05112Debenhams DesirePublicis Blueprint747,2510.0747,2510.3745,12613Sky KidsNews Magazines745,779N/A-N/A-14Reader’s DigestReader’s Digest Association712,815-0.6717,285-3.3737,34515Saga MagazineSaga Publishing659,1047.9610,771-40.41,105,14016BirdsRSPB610,801-0.9616,066-1.7621,19817CloserEmap Consumer Media570,239-7.1614,141-3.4590,21118HeatEmap Consumer Media558,365-6.7598,623-3.7579,88319OK! MagazineNorthern & Shell557,014-10.7624,0911.7547,71420GlamourConde Nast Publications544,653-7.5588,539-7.1586,05621ChatIPC Media511,510-4.8537,464-7.7544,37522UnlimitedBristol Magazine500,700-4.6524,600-7.7542,25023NowIPC Media494,229-8.5540,132539,902Source: ABC Concurrent Release, February 2007.-8.524Ikea Family LiveAugust Media487,815N/A-N/A-25CosmopolitanThe National Magazine Co450,952The Magazine MediaHandbook 2007-1.0455,649Source: ABC Concurrent Release, August 2007.1.925442,384

Top 25 circulatingbusiness media titlesRankTitlePublisherTotal avg. netcirculation1RCN BulletinRCN Publishing Company375,4202MQGrand Lodge Publications239,1573First VoiceCambridge Publishers185,9374Financial ManagementCaspian Publishing155,6655Engineering & TechnologyThe Inst. Of Engineering and Technology146,3436Computer WeeklyReed Business Information140,9387People ManagementPersonnel Publications127,3968British Medical Journal (BMJ)BMJ Publishing Group123,7929Accounting & BusinessAssoc. of Chartered Certified Accountants121,95310The Law Society’s GazetteThe Law Society115,57611ComputingIncisive Media115,43112Professional BuilderHamerville Magazines105,41313ProFILEProspect101,63314Management TodayHaymarket Business Media100,01115AccountancyCCH94,40016RICS BusinessAtom Publishing90,56417PC ProDennis Publishing90,40718Computer ShopperDennis Publishing83,39019Auto Service and RepairTen Alps Publishing79,10020NADFAS ReviewNADFAS Enterprises78,05921Professional ManagerChartered Management Institute77,15222Nursing StandardRCN Publishing Company73,26823Personal Computer WorldIncisive Media72,00824Farmers WeeklyReed Business Information70,31525The TESTSL Education69,153Source: ABC, Nov 2007.The Magazine MediaHandbook 200727

SubscriptionsPurchasing of consumer magazinesSubscriptions14%Export6.5%Retail86%Domestic93.5%Source: Wessenden Marketing, 2007Overall one in five people have a subscription, two per cent having received it as a gift.A third of subscribers subscribe to more than one magazine, and the average number ofyears current subscribers have been subscribing to a magazine is 3.7.Although there is no discrepancy between male and female purchasing habits, men aremore likely to spend more money on magazine related products.The Magazine MediaHandbook 200728

SubscriptionsSteady growthWhile subscriptions have traditionally offered a fairly low percentage of overall UKmagazine sales, subscription rates have been increasing steadily in recent years. They nowaccount for 14 per cent of total sales, and every seventh magazine sold in the UK.SUBSCRIPTION SHARE TREND(UK Subs as % of Total UK ABC)14.0%13.0%12.0%11.0%10.0%9.0%8.0%7.0%1994199519961997199819992000200120022003200420052006Source: Wessenden Marketing, 2007Rewards for readersSubscriptions ensure that consumers remain loyal to specific magazine brands throughout theyear. In turn, this subscribed readership enjoys a significant discount on the retail coverprice.In 2006, the average subscription was sold to the consumer at a 32 per cent discount belowretail price. The average renewal rate also increased markedly over the course of the year -from 73 per cent to 79 per cent.Growing subscription rates mean that publishers are able to secure an increasingly extensiveinsight into their readership groups, and are consequently able to deliver a more targetedand refined product to their audience.The Magazine MediaHandbook 200729

Subscriptions increase salesAround a quarter (23%) of those who have subscribed to a magazine have boughtsomething else linked to the magazine.This figure underlines the value of subscription sales to publishers, even at discountedcopy price rates.Advertisers place great importance upon a product that is not only bought into anddelivered directly to consumers’ homes, but also offers a high proportion of consumerswho spend money on products based on advertising that they have seen in theirfavourite magazine.% of magazine subscribers whospend money on products linked toa magazine£ spent on products linked to magazine% of Respondents£1-£5046%£51-£10019%£101-£2006%£201-£3007%£301-£4003%£401-£5005%£501-£10002%£1001-£20001%More than £20006%Don't know6%Source: Wessenden Marketing, 2007.The Magazine MediaHandbook 200730

Over the counter…The alternative to subscribing to magazines is to buy them at retail. Unlike in the US,where subscriptions make up 87 per cent of total magazine sales, the majority of UKmagazines are sold over the counter at various retail outlets.This is obviously an extremely important source of revenue not only to publishers butalso to retailers, who thrive on the sale of fast moving consumer goods through brandrecognition, which is a key strength of the magazine medium.Top 20 titles by newsstandsales value (£m)Outlet’s share of magazinedistribution (%)1OK! Magazine54.32Radio Times50.534HeatTake a Break47.537.0Retail Channel2006 % Share56CloserWhat's on TV33.231.4Grocery31.578Hello!Now27.725.5Independents28.8910TV ChoiceNuts24.620.8High street12.311Chat19.6Convenience10.912TV Times18.113Grazia17.5Travel91415RevealWoman16.915.4CTN5.81617That's LifeZoo15.014.0Forecourts1.41819FHMCosmopolitan13.413.3Other Multiples0.320Woman'sOwn12.9TOTAL100Both tables source: Wessenden Marketing, 2007.The Magazine MediaHandbook 200731

The magazine retailing mapPrint product sales % sharePress retailers: in-storesalesPress retailers: homedeliverySpecialist & emergingretailersPublishing direct homedeliveryVending8151NilMinimalThe bulk of magazines that are sold in theUK are distributed to major press retailersthrough press wholesalers.While digital distribution continues togrow, especially in the business mediasector, it remains a marginal source forconsumers to obtain magazine products.Digital PrintingPostal subscriptionsMinimal13Table and Chart Source: Wessenden Marketing, 2007.TOTAL100UK magazine sales: from publishing to purchasePublisher ProductSupply ChainConsumer TouchpointsPrint ProductElectronic ProductPress WholesalersSpecialist DistributorsPublishers DirectPublishers DirectPublishers DirectPress Retailers(54.000)Specialist & Emerging Retailers(35.000)Home DeliveryVendingDigital PrintingPostal SubscriptionWebsitesDigital EditionsNON -RETAIL RETAILThe Magazine MediaHandbook 200732

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Readership of consumermagazines75% of all UK adultsread a consumer title84% of 15-24yr oldsread a consumer titleSource: NRS, 2007.Almost everyone reads a magazine. 75 per cent of all UK adults read at leastone of the 183 consumer titles listed on the National Readership Survey.However, with a total of 8,558 recorded magazines currently in circulation –business and consumer – we can say with some certainty that almost every UK adultreads at least one magazine title.Significantly, magazinereadership is heaviestamongst key demographicgroups, such as ABC1s andyoung adults.Growth in children’s magazines 2006-07There has also been asubstantial growth in thenumber of children’s titles inrecent years, and afurther six high profilechildren’s launches havebeen planned during 2007.PreSchool+7.1%PrimarySchool+22.5%PreTeen+15.7%Source: ABC, 2007.The Magazine MediaHandbook 200734

Readership of business mediamagazines87% of business decisionmakers read an industrypublication95% of farmers readat least one farmingpublicationSource: The Colouring Book, 2007.Reading of business media titles is even higher than that of consumer magazines. 87 per centof decision makers use business media publications regularly for work purposes – more thanany other medium.In turn, such publications proliferate the doctrines of their industries: 83 per cent ofmanagers would recommend to people starting a career in their sector to readthe business publications.The targeted nature of magazines means that readership catchments in relevantgroups is particularly high. For example, we know that 95 per cent of farmers read atleast one farming publication, and that 92 per cent of hospital doctors read atleast one medical journal.The Magazine MediaHandbook 200735

Readership profilesThe National Readership Survey (NRS) provides estimates of the number and nature ofthe people who read Britain's newspapers and consumer magazines. From this informationwe are able to ascertain the number of readers of a publication and the type of people thosereaders are in terms of sex, age, regionality and many other demographic and lifestylecharacteristics.Every year, a total of some 36,000 randomly selected individuals are interviewed on a oneto-onebasis for an average of just under 30 minutes.% Share of sample who read an NRS listed titleSEXMaleFemaleAny General Weekly4852Any Women'sWeekly1684Any GeneralMonthy5941Any Women'sMonthly2773Population4951AGE15-2425-3435-4445-5455-6465+201520161317221818141117191820151415151721161516161619161420SOCIALGRADEABC1C2DE2629212419312128313120183032182026292124REGIONLondon & SESW & WalesMidlandsNorth WestNE & NorthScotlandGreater London3714171115612351316111691340131791281341131611128153614161114913WEIGHT OFTV VIEWINGHeavyMedium/HeavyMediumLight/MediumLightNever View8232222151082223221310621222316126222322141272222211512Source: NRS, 2007.The Magazine MediaHandbook 200736

Readership accumulation dataIn 2004, the NRS created the Readership Accumulation Survey (RAS), to measurethe different speeds at which individual magazine and newspaper titles build up theiraverage issue readership. The data shows how soon after a given issue hits thenewsstands the average issue reader actually reads it – and illustrates this informationvia an accumulation curve.It is important for those planning advertising in magazines not only to know how manyreaders see an ad and wha their profile is, but also when those readers are going tosee it – so that simultaneous TV, radio, print and online campaigns can be coordinated.10090Average readership accumulation curves forweekly magazines and television programmes% of total coverage80706050403020100Average TV WeeklyWomen's WeekliesGeneral Weeklies191725334149576573818997105113121129137145153161169177DaysSource: NRS Readership Accumulation Survey, 2005.The readership accumulation study and resultant pattern of build allow us to look atweek-by-week reach in print, which in turn enables direct comparisons with TVschedules. Advertising agencies can now plan print the same way they plan TV: weeklyrating points and weekly reach estimates.The Magazine MediaHandbook 200737

Readership accumulation dataAverage readership accumulation curves forwomen’s weeklies and lifestyle monthlies100% of total coverage806040200Women's WeekliesWomen's Lifestyle Monthlies1 11 21 31 41 51 61 71 81 91 101 111 121 131 141 151 161 171 181DaysSource: NRS Readership Accumulation Survey, 2005.The chart demonstrates the length of time it takes different sorts of publications to amasstheir coverage over time.As one might expect, women’s weeklies attain maximum coverage more quickly thanwomen’s lifestyle monthlies, which are sold over a longer period of time.Within the first two weeks of its life, a women’s weekly title will – on average – haveamassed 80 per cent of its total coverage. For women’s monthly lifestyle titles, it takes twomonths to build up 80 per cent coverage.The Magazine MediaHandbook 200738

Quality of readingOf course, reach and readership figures alone cannot give us an insight into theway in which consumers engage with a given medium. We know that magazinesare highly targeted, and that magazine brands are recognised as a trusted sourceof information and entertainment. But how are these titles being read?ConsumerMagazines require attention. The very acts of reading and turning pages meanthat you are actively using your brain to scan what’s in front of you and selectingwhat to read. Consequently magazine readers become completely immersed in their“magazine moment” and generally find distraction in very little else.Per cent who say they multitask media use and life activitiesOnline0 10 20 30 40 50 60 70 8070%Radio69TV66Newspaper43Magazine41Source: BIGresearch SIMM VI, 2005.The Magazine MediaHandbook 200739

Quality of readingTime spent readingThe average consumer magazine is read for a healthy 54 minutes. By contrast, theaverage newspaper supplement/section is read for an average of 26 minutes. Theaverage magazine is picked up 5.4 times. For newspaper supplements/sections theaverage is 2.8.The number of times the average reader reads the average page is 2.5 times.6053.665.4505Minutes40302025.7Number of pick-ups4322.81010Consumer M agazinesNewspaperSupplements/Sections0Consumer MagazinesNewspaper Supplements/Sections“How long do you usually spend in total readingor looking at an issue of…by the time you havefinished with it?”“How many times do you usually pick up an issue of…by the time you have finished with it?”Source: Quality of Reading Survey, 2000.Quality timeIn addition to being read on numerous occasions for long periods of time, thereading of magazines is regarded as an extremely rewarding experience. 84 per centof readers agree with the statement “you can believe what you read in it”; 81 percent “I look forward to reading it”; and 87 per cent “I read it when I’m relaxing”.The Magazine MediaHandbook 200740

Business informationLike consumer magazines, readers regard business media publications as a principal sourceof interest and information.They are the media information source most regularly used to gain information about thebusiness sectors, and 80 per cent of decision makers find professional media anauthoritative source of information.Which media and informationsource do you use mostregularly to gain informationabout your sector?0 20 40 60 80 100%Business Publications87Websites71Conferences/Exhibitions54National New spapers46General BusinessMagazines42Direct Mail42Regional New spapers37Source: PPA, The Essential Medium, 2002The Magazine MediaHandbook 200741

At work but not at workDespite being regarded as such an important source of business information, businessmedia titles are also looked upon as a source of enjoyment. Sixty seven percent of these readers read them within a few days, and 87 per cent look through theentire magazine. 80 per cent find business media magazines interesting and 66 per centenjoy receiving them.79%Read businessmagazines attheir desk55%Read businessmagazines when theyhave a break at work66%Enjoy receivingbusinessmagazinesSource: The Colouring Book, 2007The readership is also a very loyal one– approximately 95 per cent ofreaders who read a business mediatitle do so on a regular basis.The majority of business magazinesare circulated free of charge, usuallyon a controlled circulation basis, whichmeans that readers have to qualifyunder the publisher’s terms of control.The result is a highly targetedreadership selected for its relevance toadvertisers.Business media UKcirculation70%Controlled30%PaidSource: PPA, 2007.The Magazine MediaHandbook 200742

The Magazine MediaHandbook 200743

AdvertisingIn an age of growing ad-avoidance, the magazine industry is now, more than ever,playing a crucial role in communicating the messages of advertisers.% share of advertising market by media typeCinema 1%Radio 4%Internet 14%Newspapers 33%Outdoor 7%Television 33%Magazines 13%Source: Advertising Association, Forecast 2007.Almost £2bn was spent onmagazine advertising during 2006(consumer andbusiness media) - a 13.2 per centshare of the total UK main mediaadvertising spend.% Share of totalMagazine AdvertisingRevenueConsumer magazines’ share was5.8 per cent, with business mediatitles accounting for 7.3 per cent.Businessmedia56%Consumer44%The Magazine MediaHandbook 2007Source: Advertising Association, Forecast 2007.44

AdvertisingTotal media advertising expenditure at current prices (£m)Year19961997199819992000200120022003200420052006National newspapers1,5101,6501,8241,9912,2522,0621,9301,9021,9741,9121,914Regional newspapers2,0612,2382,3902,4832,7622,8342,8782,9623,1322,9942,782Consumer magazines583660709727750779785784819827812B2B magazines1,0181,1061,2091,1951,2701,2021,0881,0481,0821,0641,016Television3,3793,7044,0294,3214,6464,1474,3414,3784,6534,8204,594Outdoor4465456136498107888169149861,0431,084Radio344393460516593541547584606579534Cinema738897123128164180180192188188Internet-819511531661974658251,3662,016Total9,41410,39211,35012,05613,36412,68312,76213,21714,26914,79314,940Magazine advertising expenditure 1997-2006Source: Advertising Association, 2007.250020001500£m100050001997 1998 1999 2000 2001 2002 2003 2004 2005 2006Consumer B&P All MagazinesSource: Advertising Association, 2007.The Magazine MediaHandbook 200745

AdvertisingBusiness & Professional display/classified split, 1997-2006706050%4030201001997 1998 1999 2000 2001 2002 2003 2004 2005 2006DisplayClassifiedSource: Advertising Association, 2007.In contrast to newspapers, a very high proportion (80 per cent) of consumer magazineadvertising revenue is derived from display advertising, with a relatively small amount(20 per cent) coming from classified and recruitment.In the case of business mediapublications, whose focus is moregeared towards providinginformation as opposed toentertainment, the split is moreeven. 58.5 per cent of advertisingrevenue derives from display,with classified accounting for theother 41.5 per cent.96% of advertisers usebusiness media magazinesfor marketing theircompany’s productsSource: TheColouringBook, 2007The Magazine MediaHandbook 200746

Top spending advertisers inconsumer magazinesFast moving consumer goods advertisers are increasingly relying upon magazines topromote both new and established products and services.This investment comes in the form of both traditional consumer magazine advertising,and by way of enlisting publishing houses to create their own customer magazines.123456PROCTER & GAMBLE LTDLOREAL GOLDEN LTDUNILEVER UK LTDMASTERFOODSBRITISH SKY BROADCASTING LTDSHOP DIRECT LTDPeriod TotalExpenditure30,894,45729,566,12124,862,01311,009,7899,914,8449,082,005The Advertising Association (AA)predicts a 15.6 per cent increase inconsumer magazine ad-spend overthe next 12 years, taking overalladvertising investment in the industryfrom £750m in 2006 to £889m in2018:789NESTLECOI COMMUNICATIONSTESCO PLC1 BEIERSDORF 0UK LTD1 JD 1WILLIAMS & CO LTD1 LOREAL 2 LUXURY PRODUCTS LTD1 BOOTS 3 THE CHEMISTS LTD1 JOHN 4 LEWIS PARTNERSHIP1 SAMSUNG 5 (UK) LTD1 COTY 6 PRESTIGE UK LTD1 CHANEL 7 LTD1 COTY 8 UK LTD1 ALBERTO 9 CULVER CO UK LTD2 KRAFT 0 FOODS (UK) LTD2 MARKS 1 & SPENCER2 RENAULT 2 UK LTD2 TMOBILE 3 NETWORK2 ESTEE 4 LAUDER COSMETICS LTD2 VODAFONE 5 LTD9,040,4178,884,8816,887,8366,576,7856,494,5485,791,5475,610,1105,481,5914,872,1634,626,2564,522,5644,481,8674,345,2644,335,2444,248,5074,037,1473,926,1873,876,0273,730,150“In our view, the nature ofmagazines and their relationshipwith their readers means theyhave less to fear from theinternet as a rival for displaybudgets than, say, nationalnewspapers do. The steadyproliferation of new titles, aimedat highly segmented interestgroups, should stimulate interestfrom advertisers.“ (AA)This is a view which is shared by theUK’s leading advertiser, Procter &Gamble, who have increased theirinvestment in print by 10.7 per centover the last two years.Source: Nielsen Media Research, 2007The Magazine MediaHandbook 200747

Major advertisers increasingoverall media spendIn the UK advertising revenue has been growing ahead of inflation. On average. The top25 UK advertisers increased spend by 4.4 per cent over the course of 2006.20052006ExpenditureExpenditureExp. Yr on Yr Diff %PROCTER & GAMBLE187,763,211181,319,828-7.95%UNILEVER UK204,390,897177,304,221-4.61%COI COMMUNICATIONS172,158,974141,153,203-8.96%LOREAL GOLDEN106,044,011120,161,75211.07%BRITISH SKY BROADCASTING111,259,688118,371,84211.58%DFS FURNITURE87,094,31698,715,08414.53%BT80,736,11092,332,239-1.80%ORANGE99,340,42489,073,6610.57%RECKITT BENCKISER (UK)80,760,49983,796,160-0.77%TESCO61,761,23976,142,00016.10%NESTLE69,285,92569,280,5751.47%MARKS & SPENCER45,327,07568,314,74439.40%VAUXHALL MOTORS64,267,85765,172,9483.37%KELLOGG COMPANY OF GB59,115,10863,917,2656.51%VODAFONE50,387,14363,607,51419.91%LLOYDS TSB58,858,95162,425,4090.76%MASTERFOODS79,460,73359,984,4823.58%SAINSBURYS SUPERMARKETS53,597,21558,968,6243.04%CAPITAL ONE49,884,33357,963,301-5.05%FORD MOTOR COMPANY64,025,45757,383,232-11.86%MBNA EUROPE BANK38,574,06253,666,3527.81%O2 UK49,505,27553,011,4985.50%VOLKSWAGEN UK46,198,30546,313,321-1.93%TMOBILE NETWORK46,445,39146,050,96723.30%RENAULT UK61,584,33942,769,826-14.78%Source: Nielsen Media Research, 2007.The Magazine MediaHandbook 200748

Top 100 consumer magazines bydisplay advertising revenue2006 (£)2005 (£)1OK! WEEKLY30,057,69928,879,9932VOGUE25,610,02523,565,8823GLAMOUR23,770,27224,260,4394HEAT23,728,22421,936,9735WIRED USA21,921,63415,357,9736WHAT'S ON TV20,238,64720,274,0447MARIE CLAIRE18,092,26017,969,5488RADIO TIMES17,476,82218,240,5339POWER & MOTORYACHT16,768,33511,845,99510HELLO16,658,12616,202,39811ELLE16,429,84814,336,83612COSMOPOLITAN15,779,97716,769,03913NOW14,853,97213,368,08214ECONOMIST14,454,45112,909,71315TAKE A BREAK14,189,11914,679,00816GOOD HOUSEKEEPING13,840,95914,842,09417CLOSER13,823,07410,209,55918GRAZIA12,815,4905,788,56619COUNTRY LIFE12,514,01312,654,65420RED MAGAZINE12,208,47511,693,154212223242526272829303132SKY CUSTOMER MAGAZINEWOMAN'S OWNGQHOUSE & GARDENSAGA MAGAZINEFHMTATLERIN STYLEBELLAWOMANFORTUNE (INTL)HARPERS BAZAAR11,877,71311,702,31611,684,56911,320,15710,827,25510,446,55810,218,19510,054,0259,886,1309,517,2689,343,3079,096,01614,130,26512,485,77711,517,6319,833,2039,768,36112,611,7609,294,0849,966,53610,315,51310,699,3898,039,3737,842,611Source: Nielsen Media Research, 2007.33BEST9,057,1919,945,177The Magazine MediaHandbook 200749

Top 100 consumer magazines bydisplay advertising revenue34TV CHOICE8,929,1139,986,82535BRIDES7,290,1898,371,08636READER'S DIGEST7,214,9226,875,60037REVEAL7,194,3083,561,27838EASY LIVING7,139,4605,409,80939TV TIMES7,098,4257,902,06140MORE!6,730,5336,777,90241NUTS6,603,0916,379,13742SAINSBURY'S MAGAZINE6,543,7426,685,06543PRIMA6,530,2567,208,99044CHAT6,477,0435,630,64945ASDA MAGAZINE6,468,2896,837,27946NEW!6,448,0995,700,15047WALLPAPER6,335,8255,500,52748MAX POWER6,315,4374,465,42149TIME OUT6,298,6016,297,02350WORLD OF INTERIORS5,910,8655,158,87751LONDON MAGAZINE5,871,4915,438,58852YOURS5,781,5505,554,98753WHAT CAR5,748,3367,480,546545556575859606162636465ZOO WEEKLYNEW WOMANTOP GEARCOMPANYVANITY FAIRHOMES & GARDENSAUTO EXPRESSWOMAN & HOMEAUTOCARCONDE NAST TRAVELLERWOMAN'S WEEKLYNEW MUSICAL EXPRESS5,737,8395,650,2465,646,7695,544,9925,467,5415,397,4035,250,4915,233,3655,210,8565,203,8264,981,1384,947,9655,888,6936,807,1435,848,4386,560,6294,778,1025,022,9605,205,6844,688,2347,340,4864,841,6545,854,5234,957,031Source: Nielsen Media Research, 2007.66EVE4,916,1274,640,204The Magazine MediaHandbook 200750

Top 100 consumer magazines bydisplay advertising revenue67TIME4,912,7036,184,87868COUNTRY LIVING4,887,9254,020,81569IDEAL HOME4,837,0675,372,97770YOU & YOUR WEDDING4,790,4594,731,24871PEOPLE'S FRIEND4,758,2454,818,71972BBC GOOD FOOD4,722,2914,897,65173MEN'S HEALTH4,654,0764,134,96474BOAT INTERNATIONAL4,538,1813,997,04575ELLE DECORATION4,311,1133,971,64476HIGH LIFE4,301,4544,119,55277TV QUICK4,147,2735,342,50178SHOW BOATS INTERNATIONAL4,126,0043,087,74679BOOTS HEALTH & BEAUTY3,983,8704,746,39280ESQUIRE3,946,3684,410,83081STAR(A4)3,874,1823,875,01282SHE3,851,5745,205,15683WAITROSE FOOD ILLUSTRATE3,717,7092,702,40284MOTHER & BABY3,645,6433,267,92085WHAT HI FI SOUND & VISION3,606,5284,041,99586AMATEUR PHOTOGRAPHER3,602,6483,896,65487THAT'S LIFE3,592,2093,904,151888990919293949596979899100ARENAJEWISH CHRONICLEHOUSE BEAUTIFULM&S MAGAZINENATIONAL GEOGRAPHICHORSE & HOUNDTESCO MAGAZINEEMPIRELOADEDCRNCLASSIC & SPORTSCARQBBC GOOD HOMES3,589,0963,564,8633,469,9223,462,2023,402,5873,362,3583,333,7313,320,5263,292,5083,288,8223,258,4163,233,0013,177,7833,885,8003,068,0103,733,6713,205,3002,776,4413,098,6192,653,0883,773,7044,042,4873,013,9872,940,5483,232,4193,556,472Source: Nielsen Media Research, 2007.The Magazine MediaHandbook 200751

Top 100 B+P magazines bydisplay advertising revenueMagazine2006 (£m)2005 (£m)1ECONOMIST25,974,93822,341,9362AVIATION WK & SPACE TECH19,117,65114,953,4783EE TIMES INTL14,364,03931,237,5594FINANCIAL ADVISER12,859,31610,626,2295ESTATES GAZETTE11,923,79710,257,6066TRAVEL TRADE GAZETTE10,576,44911,032,4377INVESTMENT WEEK10,139,08710,914,6918BUSINESS & COMM AVIATION9,207,8158,874,1189PROPERTY WEEK9,201,0538,775,30110TRAVEL WEEKLY9,037,73010,770,65611TIME8,703,82110,451,95612COMPUTING7,847,1207,537,85813CHEMICAL & ENGINEERING NEWS7,840,6187,383,54414MORTGAGE SOLUTIONS7,136,4126,097,89015MONEY MARKETING7,036,9257,220,81916FLEET NEWS6,587,2256,500,76217ELECTRONIC DESIGN6,518,30912,629,24018COMPUTER WEEKLY6,446,9316,373,39119GENERAL PRACTITIONER6,125,9096,940,90020PROFESSIONAL ADVISER5,690,9965,138,69621CRN5,673,4955,183,59422PUBLICAN5,468,3614,340,6682324252627282930313233FARMERS WEEKLYINVESTORS CHRONICLEDEFENSE NEWSFLIGHT INTERNATIONALBUILDINGMORTGAGE STRATEGYAIR TRANSPORT WORLDTHE GROCERFABRICMANAGEMENT TODAYCONSTRUCTION NEWS5,342,0825,290,9605,248,5035,070,5704,875,3714,843,0844,832,8174,830,7354,819,3254,511,4054,469,5884,729,8645,334,8314,754,0525,197,5544,032,9364,007,5414,063,8114,731,4284,847,7504,371,0634,065,835Source: Nielsen Media Research, 2007.The Magazine MediaHandbook 200752

Top 100 B+P magazines bydisplay advertising revenue34PULSE4,463,7885,893,89035BUILDING4,324,5813,802,61136MANAGEMENT TODAY4,296,5104,322,00537IT WEEK4,262,3204,206,84638MORNING ADVERTISER3,985,5193,107,77639CATERER & HOTEL KEEPER3,946,7853,896,51540CHEMICAL WEEK INTL3,876,2783,688,05041MICROSCOPE3,774,9992,912,78142ABTA MAGAZINE3,749,9253,593,82043ELECTRONICS WEEKLY3,605,5583,107,46344JANES DEFENCE WEEKLY3,580,6133,209,43745HAIRDRESSERS JOURNAL INTL3,500,8643,746,08346DIRECTOR3,461,1953,033,50447COST SECTOR CATERING3,230,5122,658,53448DOCTOR3,184,6712,214,55149PROFESSIONAL BUILDER3,149,2412,942,78150BMJ CLINICAL RESEARCH3,127,3232,659,79551PC PRO3,115,7463,789,20652CHEMIST & DRUGGIST3,114,1472,751,09153GLASS'S GUIDE3,103,3362,944,60954DIRECTOR3,096,7183,099,87955ACCOUNTANCY AGE3,087,3013,318,82956NEW MODEL ADVISER3,085,917468,77557DENTISTRY2,938,2162,614,07658COMPUTER ACTIVE2,889,3613,605,05759FLIGHT DAILY NEWS2,846,3092,401,24860CONTRACT JOURNAL2,804,7512,577,81461COMPUTER SHOPPER2,798,4113,432,31662INT DEFENSE REVIEW2,733,5452,078,94063FARMERS GUARDIAN2,721,0943,407,39064ROTOR & WING2,680,7202,593,99565MONEY WEEK2,670,5151,634,49066CONVENIENCE STORE2,630,3422,865,965The Magazine MediaHandbook 200753

Top 100 B+P magazines bydisplay advertising revenue67ICON2,524,2002,445,38068NEWSWEEK2,476,7522,148,39669BUSINESS LIFE2,445,7422,341,24770AIRLINE BUSINESS2,434,4082,856,12071OFFICIAL PLAYSTATION 22,423,3183,692,93172EAT OUT2,411,8101,407,82873ELECTRONIC PRODUCT NEWS2,393,5104,189,18674THE ARCHITECTS' JOURNAL2,384,7542,468,23975RETAIL WEEK2,381,5022,325,95676BUILDING SERVICES JNL2,381,3402,335,18577MONEYWISE2,348,1172,311,41378BMJ (GENERAL PRACTICE)2,339,6522,621,86279MONEY MANAGEMENT2,319,0911,83,58680SHARES2,318,4162,238,11781YOUR MORTGAGE2,308,0162,379,52682BUILDING DESIGN2,294,1972,155,76483PC ADVISOR2,250,1072,661,43184MIMS2,223,7932,615,59385CFO EUROPE2,163,0752,003,51786BUILDING SERVICES JNL2,147,8311,984,95587HOSPITAL DOCTOR2,113,9991,983,81588PROFESSIONAL ENGINEERING2,108,6782,188,7008990919293949596979899100COMMERCIAL MOTORMOTOR TRADEREDNPEOPLE MANAGEMENTEMPLOYEE BENEFITSRETAIL NEWSAGENTPERSONNEL TODAYRESTAURANTMACWORLDPROF ELECTRICIAN/INSTALLEREDN EUROPEBLUEPRINT2,106,7552,097,0702,085,4352,058,7002,033,4502,031,6072,027,0592,021,4402,018,5841,964,1161,431,4631,418,9302,207,9741,734,7194,060,2722,198,750N/A2,030,0191,981,8612,095,4352,223,7551,917,1332,511,1661,390,247Source: Nielsen Media Research, 2007.The Magazine MediaHandbook 200754

Major B+P magazine advertisersin selected categoriesTop 10 agricultural advertisers£BAYER CROP PROTECTION684,632Top 10 building advertisers £DELL470,464SYNGENTA CROP PROTECTION UK LTD486,682CORUS COLORCOAT443,090SCHERING-PLOUGH (MIDDLESEX)CLAAS UK LTD473,595362,393AUTODESK LTDDORMA UK LTD261,520255,517INTERVET UK LTD361,556KINGSPAN BUILDING PRODUCTS LTD245,553NICKERSON BROTHERS LTD338,446BRITISH BOARD OF AGREMENT242,722AGCO278,025MONODRAUGHT FLUES LTD234,983PFIZER LTD249,497THRISLINGTON SALES LTD228,657MERIAL ANIMAL HEALTH LTD246,951ROCKWOOL LTD213,998BASF PLC218,497DURAVIT UK211,703Top 10 catering advertisersSHOP EQUIP LTDNESTLE COMPANY LTDPROCTER & GAMBLE LTDCHRISTIE & COUNILEVER BEST FOODSHOTELYMPIABURCO MAXOLENODIS DISTRIBUTION UKCALIFORNIA RAISIN CATERING ADV SVCHEINZ FOOD SERVICECLIVE EMSON (KENT) AUCTIONEERSCOLLIERS CRE (L W1)KING STURGE & CO (L W1)SAVILLS (L W1)JONES LANG LASALLE (L W1)SLOUGH (BER) ESTATESCUSHMAN & WAKEFIELD (L W1)ALLSOP & CO (L W1)KNIGHT FRANK (L W1)FAIRVIEW NEW HOMES (L W1) PLCTop 10 electronic advertisers£ £515,035448,708392,035381,381307,988234,879211,097210,999198,883174,9791,371,682362,900314,031292,841292,212277,632274,556243,640221,232196,465DIGI-KEY CORPORATIONTEXAS INSTRUMENTSANALOG DEVICESRS COMPONENTSThe Magazine MediaHandbook 2007AGILENT TECHNOLOGIES INCNATIONAL INSTRUMENTS UK CORPMAXIM INTEGRATED PRODUCTSPOWERSOLVE ELECTRONICS LTDLINEAR TECHNOLOGY (UK) LTDNATIONAL SEMICONDUCTOR CORPASTELLAS PHARMA LTDASTRAZENECABOEHRINGER/PFIZERSERVIER LABORATORIES LTDMERCK SHARPE DOHME/SCHERINGPLOUGHSCHERING PLOUGH LTDBAYER UK LTDBOEHRINGER INGELHEIM LTD453,860425,155307,510205,462195,922194,293190,548178,520176,144149,430Top 10 property advertisersTop 10 general practitioner advertisers£ £PFIZER GROUPGSK GLAXO SMITHKLINE2,050,2201,653,4851,122,0241,110,358868,231654,715590,694588,941553,726522,346Source: Nielsen Media Research, 2007.55

Major B+P magazine advertisersin selected categoriesTop 10 grocery advertisersSHOP-EQUIPG&M SUPPLIES LTDHM REVENUE & CUSTOMSMASTERFOODSPROCTER & GAMBLE LTDDIAGEO GREAT BRITAIN£Top 10 industrial advertisers£IGUS (UK) LTD327,4451,172,843AUTODESK LTD222,039840,768791,419WNT UK LTD194,046NATIONAL INSTRUMENTS UK CORP£ 783,337£178,591660,193 BOSCH REXROTH LTD170,354645,004 ROCKWELL AUTOMATION167,671COCA COLA SCHWEPPES BEVERAGES LTD620,829ADOBE SYSTEMS INC159,078COORS BREWERS LTD532,138SOLID WORKS UK153,323NESTLE ROWNTREE CONFECTIONERY513,744SEW EURODRIVE152,806UNILEVER499,474MTA150,786Top 10 travel advertisers£Top 10 computer advertisers£SANDALS RESORTS813,648IBM UK LTD2,011,821KUONI777,3061&1 INTERNET LIMITED1,640,944GOLD MEDAL TRAVEL GROUP PLCTRAVEL 2 TOURSAIR JAMAICA758,062 MICROSOFT LTD1,450,152675,707 EVESHAM TECHNOLOGY£ £1,290,502403,075 HEWLETT PACKARD LTD1,266,325EUROSTAR364,201COMPUTER WAREHOUSE1,096,822ETIHAD AIRWAYS322,227DELL COMPUTER CORPORATION LTD1,069,189JET AIRWAYS301,630MICRO ANVIKA COMPUTER SOLUTIONS905,683AIR BERLIN277,210DABS COM823,871MANCHESTER AIRPORT273,830MESH COMPUTERS PLC748,804Top 10 financial advertisers£FIDELITY INVESTMENT SERVICES LTDNEW STAR ASSET MANAGEMENT1,777,6111,281,410Source: Nielsen Media Research, 2007.F&C MANAGEMENT LTDGARTMORE INVESTMENT MANAGEMENT LTDLEGAL & GENERAL GROUP PLCLEXUS (GB) LTDJUPITER UNIT TRUST MANAGERS LTDTHREADNEEDLE INVESTMENTSHENDERSON PLCROLEX SA LTD£1,082,6801,029,127835,048818,205804,469717,950640,922625,766The Magazine MediaHandbook 200756

The Magazine MediaHandbook 200757

TargetingMagazine advertising is undoubtedly the most efficient way to target specific demographics.The group most coveted of all by advertisers is the affluent ABC1 audience, who have thehighest disposable income, and therefore offer the greatest return on advertisinginvestment.A recent PPA study highlights the exceptional ability of magazines to attract thisaudience.29.4%return 62.6%returnHighest ranking ABC1television programmeABC1 targeted magazinesOf all the television programmes in 2006to be aimed at an audience of ABC1women, the highest rating of the entireyear received a return of 29.4 per cent.But if we compare this figure tomagazines targeted at ABC1 women, thisfigure is extremely low. And in actual fact,even titles at the other end of the market,whose target audience falls outside of theABC1 demographic, deliver a higheraverage return on the ABC1 audience.37.1%returnNon-ABC1 targeted magazinesSource: PPA, March 2007.The Magazine MediaHandbook 200758

RelevanceContrary to the wider market place, where 59 per cent of consumers say that mostmarketing and advertising has very little relevance to them (Yankelovich, 2004)consumers have a strong expectation that magazine advertising will be relevant to thempersonally.Hearst Magazines’ Engagement Factor Study (2005), which looked at adults aged 18 to54, found that the consumer feels the relevance of magazine advertising is more thandouble that of the internet and more than 50 per cent that of TV.Per cent agree that “Most of the ads are geared toward the audienceinvolved with the medium”70%60%60%50%40%38%30%28%20%10%0%Magazine Advertising TV Commercials OnlineSource: Hearst Magazines’ Engagement Factor Study, 2005.Absorbing Media (PPA 2002) found much the same view that magazine advertising was feltto be the most relevant to the consumer. Again, 50% more consumers expressed this viewabout magazines than TV. The difference between magazines and the internet was evenstronger.The Magazine MediaHandbook 200759

RelevanceThe time spent reading our favourite magazines is intensely personal, cocooned fromexternal intrusion. Like a good friend, magazines offer a voice of trust and a momentof intimacy that is highly beneficial to advertisers.Fourty two per cent of magazine readers claim to read their titles "cover-to-cover“, theaverage magazine reader spends at least 50 minutes reading their favourite title, andas we have seen from our analysis of subscriptions, brand loyalty makes magazinereaders likely to spend money on magazine-related products.And so, as the ultimate 'opt-in' medium, the magazine audience provides an unrivalledlevel of receptiveness to advertising. Consumers not only see magazines as themedium most likely to contain the conten that they are most interested in, but also,the most relevant advertising."This medium has advertisingthat I find relevant"MagazinesNewspapersNewspaper SupplementsCommercial TV% agreethat itapplies34%18%9%23%"Magazines give thereader control,which makesadvertising morewelcome. Andmagazines targetreaders, whichmakes theadvertising morerelevant"Erwin Ephron,Founder of Ephron MediaCommercial Radio5%Websites10%Source: Absorbing Media, 2002.The Magazine MediaHandbook 200760

TrustMagazine advertising also scores very well when consumers consider media that theyuse as a guide to purchase decisions.This is because the buying guide is at the heart of why consumers buy magazines andwhy editors create content that helps readers edit choice. People look to theirmagazines as a trusted agent, filtering and sorting reliable information, sources andoffers. As the Henley Centre put it:“titles fulfill an important role as an advocate and source of referral. These things arecrucial to people in generating points of view ……. and personal recommendations inday-to-day conversations and are an important element of successful engagement.”This trust in the editorial content of magazines rubs off on consumer attitudes toadvertising within their chosen title.Recently Hearst Magazines’ Engagement Study reinforced this view. Focusing onadults aged 18-54 they discovered that consumers are 75% more likely to trustmagazine advertising than commercial TV ads and 3 times more likely whencompared to Internet advertising.Percentage of adults aged 18 – 54 who trust Ads in medium25%20%21%15%12%10%7%5%0%Magazine Advertising TV Commercials OnlineSource: Hearst Magazines’ Engagement Factor Study, 2005.The Magazine MediaHandbook 200761

ScaleThe combination of magazines’ psychographic segmentation, active media consumption andscale delivers advertisers an opportunity to engage with massaudiences. Planned the correctway, (see PPA Planning Uncovered 2005) magazine are capable of delivering mass marketreach or niche market reach.Mixture of weekly and monthly magazines – no supplementsMixture of weekly and monthly magazines – no supplementsSource: NRS/Telmar Timeplan, example schedule not optimised for efficiency.In addition to this scale of delivery comes the ability to segment audiences into groupsthat have similar attitudes, interests and values to each other. The process of selection ofmagazines (reflecting the consumer’s mood or needs) and subsequent payment meansthat the consumer expects the magazine consumption, will deliver something of valueto them.‘Pay as you go’ media like magazines and newspapers enjoy higher attention levels thanmore default media consumption, such as television, and as a consequence, are much morelikely to be the sole focus of consumer attention.The Magazine MediaHandbook 200762

Word of MouthMagazines are consumed and absorbed in an order and at a pace which suits theindividual. Respondents remark how magazines can be taken where and when thereader wishes, are easy to pick up and put down, and are available when there’s timefor reading. Research company NFO commented that the real meaning of thisportability of magazines “was that the magazine really can be a friend, always on handbut never demanding, just like a good friend should be”.And this affects advertising too. One of the most significant advantages that magazineshold over other media is their ability to present advertiser messages. People are happywith advertisers material not just because of the trustworthiness that rubs off from thehost title, but also because the marketing material is most usually surrounded byrelevant and useful content.This assertion has been supported by research from Roper Reports in the USA. Here astudy showed that magazines are the marketing channel that has contributed most tothe recommendations made by consumers over the past year.% Saying which marketing elements contributed to recommendations oftheirs in past year70%60%50%40%30%20%10%0%61%58%54% 55%53% 53%53%47%44%49%37%44% 45%Magazine In Store Television New spaper Coupon Radio Web35%Importantly,the 10% of thepopulation thatRoper identifyas ‘Influentials’(those thatinfluencethe rest of thepopulation) areeven morelikely to havebeen effectedby magazines.General PopulationInfluential smSource: Roper Reports, 2004.The Magazine MediaHandbook 200763

IntegrationThere is an almost unlimited range of touch-points with consumers today requiringmany different formats for content. The key to effective communication is a blend of theright message(s), in the right format(s), allowing the right consumers to becommunicated with at the right time (for them).One of the defining aspects of magazines is their ability to cross media boundaries in away that other mediums struggle to match. Many magazines have become recognisedbrands in their own right, enjoying a relationship and meaning that goes beyond thepaper product delivered on a weekly or monthly basis. This allows magazines to stepinto territories beyond print without stretching the credulity of consumers.As a consequence, magazines can now offer advertisers multi-platform contact pointsUnder the auspices of a single brand relationship with consumers.EventsTicket SalesRadioWebsitePod castsMusic SalesCompilation salesMagazineKerrang! TVSource: PPA; White Lodge Media, 2007.The Magazine MediaHandbook 200764

ROIResearch conducted by Marketing Evolution on behalf of the Magazine Publishers ofAmerica in 2006, found that magazines were the most effective medium to use inconjunction with television advertising.The study examined consumer habits across the purchase process, including brandawareness, brand familiarity, and purchase intent, and measured the effectiveness ofadvertising campaigns run on TV only, TV + online, TV + magazines, and all threemediums.In every area magazines were shown to be the most effective way of increasingconsumer response.200Purchase intent180Index of pre/post change(TV only = 100)160151144140120Base: 10 campaigns100100 101TV only TV+online TV+mags TV+mags+onlineSource: MPA/Marketing Evolution Mixed Media Purchase Funnel Study, 2006.The Magazine MediaHandbook 200765

ROI200Brand familiarity180Index of pre/post change(TV only = 100)160161140135120100Base: 10 campaigns100104TV only TV+online TV+mags TV+mags+onlineThe results showed that simply adding online advertising to an existing televisioncampaign had very little effect on consumer response - with print advertising howeverresponse was greatly increased.The results also emphasised the way in which the mediums of print and onlinecomplement one another, with the print medium driving traffic towards the onlineproduct.200180Brand awarenessIndex of pre/post change(TV only = 100)182160153140138120100Base: 10 campaigns100TV only TV+online TV+mags TV+mags+onlineSource: MPA/Marketing Evolution Mixed Media Purchase Funnel Study, 2006.The Magazine MediaHandbook 200766

ROIDynamic LogicA similar piece of research alsocommissioned by the MagazinePublishers of America and carried outby Dynamic Logic demonstrates theability of magazines to increase ROIabove any other media.% of cases in which purchase intentwas boosted by mediumMagazines80%The study focussed on 8 campaignsusing television, magazines, and onlineadvertising, and analysed five measuresof ad impact. It recorded the effect inall these areas on the ‘exposed’ groupand calculated a percentage pointincrease from the non exposed groupTVOnline26%0% 10% 20% 30% 40% 50% 60% 70% 80% 90%Source: MPA/Marketing Evolution Mixed Mediafor each medium. In terms of generating advertising awareness and purchase intentmagazines proved to be more effective than both television and online advertising.57%Purchase Funnel Study, 2006.Average percentage point increase over unexposed (control) baseline11.1Magazines5.16.0InternetTV6.15.511.02.84.24.43.37.23.1 1.31.7 2.6Aided brandawarenessAdawarenessMessageassociationBrandfavourabilityPurchase intent/considerationSource: MPA/ Dynamic Logic Cross Media Study, 2004.The Magazine MediaHandbook 200767

Sales uncoveredThe PPA’s 2005 “Sales Uncovered” study analysed the sales uplift created byadvertising in magazines. The study functioned by selecting brands which had usedmagazine advertising and whose sales had increased - and then establishing how farthat sales uplift was associated with the use of magazines.% Increase in sales (£)25.0%21.6%20.0%15.0%10.0%10.0%5.0%0.0%Non-exposedExposedSource: “Sales Uncovered”, PPA, May 2005.11.6% increase in overall sales value created by magazineadvertisingAggregating the results of all 20 fmcg brand campaigns studied, the average increase insales value during the campaign period, compared with the pre-campaign period, was forthe exposed group twice that of the non-exposed. In other words, following the start ofthe campaign, purchases by individuals seeing the magazine advertising jumped by 21.6per cent, while sales to those people not exposed rose by only 10.0Per cent. Thus the magazine advertising generated an extra 11.6 per cent increase in salesoverall.The Magazine MediaHandbook 200768

Sales uncovered18.1% increase in overall sales volume created by magazineadvertisingSales value is not the only campaign success criterion employed by advertisers, ofcourse. For many it is the number of extra sales generated by their ad campaign whichcounts. Analysis of all 20 fmcg campaigns using sales volumes, rather than salesvalues, uncovered a similar – but more marked – performance associated with magazineadvertising.On average, people exposed to the magazine advertising recorded a 29.3 per centincrease in the level of sales during the campaign, while for those without this exposurethe increase in the volume of sales was only 11.2 per cent. The inference from this isthat, overall, an additional 18.1 per cent of branded product sales are down to magazineadvertising.% Increase in sales volume35.0%30.0%29.3%25.0%20.0%15.0%10.0%11.2%5.0%0.0%Non-exposedExposedSource: “Sales Uncovered”, PPA, May 2005.The Magazine MediaHandbook 200769

Creative impactPrinted magazines offer advertisers a platform of unparalleled effectiveness on whichto engage with – and influence – consumers. Eye contact is made with 90 per cent ofall magazine advertisements, so in terms of both reach and engagement, themedium itself is strong.But what makes an ‘effective magazine advertisement’? And what can marketers doto ensure that their advertisement achieves its full potential?Type ofAdvertisement0 20 40 60 80 100 120 140Full Page100Recall IndexInside Front Cover112Inside Back Cover100Back CoverMulti-page unitsDouble Page Spread115117112Less than full page81Four colours100Spot Colour(s)92Black & White87First half of issueSecond half of issue10098Positioning and sizeSource: Affinity Research Vista Print Rating Service, 2006; MPA 2007.Covers and double page spreads are significantly more effective than ordinary pages.Advertisements placed on left hand pages are just as effective as those placed on theright.Advertisements placed at the beginning of magazines are slightly more effective thanthose placed towards the back. However, magazines do not suffer from “ad-clutter” (i.e.too many advertisements): A higher percentage of advertisements per magazine actuallyincreases ad recognition.The Magazine MediaHandbook 200770

Advertisement featuresRecent years have seen a substantial growth in demand for special advertisementfeatures, placed in and around editorial content.In an age of growing adavoidance, the personal, opted intorelationship that magazinesenjoy with their readers providesadvertisers with the perfect vehiclethrough which tobuild up affinity and trust.The advertising feature allowspublishers to intertwine orjuxtapose advertising messageswith the editorial content of atrusted and familiar brand,threading these messages directlyin and around the areas of interestand lending a voice of advocacy tothem.Creative Formulas-These include everything from inserts, tosamples, booklets, reply cards, gatefolds, etc.-All and have proven to significantly increasead-recognition:Creative Formulas = Premium Impact-Successive ads (i.e. back to back or onsuccessive right and left hand pages) workbetter, increasing engagement with advertisermessages and prolonging ad-engagement-The insert is the most frequently used specialformula. The advertiser prints his advertisingmaterial himself and then affixes it to themagazine (stapled, glued, or loose). It is agood way to attract attention.Source: Stopwatch, 2005.120,000Consumer magazines: no. of pages of advertisement features100,00080,00060,00040,00020,00002003 2004 2005 2006The Magazine MediaHandbook 2007Source: Nielsen Media Research, 2007.71

The Magazine MediaHandbook 200772

Online publishingLeveraging magazine brands onlineAs we have already seen, magazine publishers are highly successful at leveraging theirbrands in additional revenue streams. A significant proportion of the revenue of bothconsumer and business media magazine publishers stems from online publishing.The delivery channels of print and online compliment each other extremely well. Both bringan added dimension to the other, and together they combine to create a multi-platformcommunity on which to engage a varied readership.Growing industryThe UK Association of Online Publishers (AOP) represents approximately 160 onlinepublishing companies that create original, branded, quality content. Their 2007 censusshows that an average of 12 per cent of publisher’s revenues are derived from onlinesources. Total turnover for AOP members’ digital operations grew from £344m to £575mover the course of 2006 – a 67 per cent increase.Levels of trustworthiness forprint and online productsWebsite9%%Offline product22%Equal for both69%Consumption of print and online productsoverlaps considerably. The AOP DualConsumption Study found that 69 percent of respondents consider the websiteand online product to be equallytrustworthy.Of those magazine website userswho do not read the print equivalent,41 per cent say that they have neverread the magazine in the past,meaning that the website hasattracted new readers to the brand.Source: AOP Dual Consumption Survey, April 2006.The Magazine MediaHandbook 200773

Print driving onlineMedium most likely to lead consumers to start an online search%4847464547.2%444342414042.8%42.3%39Promotion within the printed magazine(s) hostingthe siteMagazines TV NewspaperSource: Retail Advertising and Marketing Association, 2007.Magazines are particularly effective at driving traffic online. Almost half of all consumersare most likely to start an online search after seeing a magazine advertisement.This connection is supported by the methodology used by business media publishers topromote their own websites, with the most popular marketing tool being the printedmagazine hosting the site.How the website is marketed to customers0%10%20%30%40%50%60%70%80%90%100%91%%Email promotionPromotion/links (paid for or free) from otherwebsitesPromotion within other magazines owned by thecompany72%70%80%Promotional events39%Paid for advertrising in newspapers, magazines, orother mediaOther7%17%Source: “Routes to Success”; FIPP, May 2006.The Magazine MediaHandbook 200774

Business media websitesThe International Federation of the Periodical Press’(FIPP) 2006 “Routes to Success”study examined a total of 46 websites from most regions of the world, to learn aboutthe ways in which publishers measured and achieved online success, and to betterunderstand the way in which online and print publishing co-exists. Although a businessmedia focussed survey, the metrics it considers gives us an insight into theonline habits of consumer and business media publishers alike.Funding of business media web operationOther5%Internal(from magazines)23%Web revenue40%Internal, centrally32%Text and Chart Source: “Routes to Success”; FIPP, May 2006Approximately 40 per cent of the total funding for business and professional websitescomes from web revenue, with almost a quarter of funding coming from the hostmagazine’s own internal funds. Revenue earned from the web is dominated byadvertising revenue, which accounts for more than 50 per cent. In turn, the majority ofthis advertising comes in the form of display, which is responsible for 30 per cent of allweb revenue.The Magazine MediaHandbook 200775

Business media websitesIn terms of readership of online businessmedia websites, the number ofvisitors per month varies enormously.The average number of visitors to B+P websites is30,000 unique users per month, with the average number of page impressions per month at350,000. Thus the average site, with 30,000 unique users, generates an average of 12 pageimpressions a month per unique visitor.RevenueRevenue earned from the web isdominated by advertising revenue,which accounts for 56 per cent.Most of this comes in the form ofdisplay advertising, which accountsfor 30 per cent of the total webrevenue of publishers.Sponsorship adds about a tenth ofweb revenue. When this is combinedwith the advertising income, it showsthat two thirds of web revenuecomes from offering marketers arange of opportunities to promotetheir products and services.Ecommerce6%OtherSponsorship11%Paid forcontent:subs12%8%Search advertising7%Display ads30%Job ads14%Other classified5%Source: “Routes to Success”; FIPP, May 2006The Magazine MediaHandbook 200776

Business media websitesExpand your audi ence beyond the pr i nt r eader shi pMajor objectives for the website0% 20% 40% 60% 80%%72%70%Communi cate wi th the tar get audi ence on a mor e f r equent basi sthan the magazi ne can doUse websi te to attr act new r eader s f or the pr i nted pr oduct67%67%63%59%Incr ease your pr oduct l i nes57%52%Cr eate new r evenue str eams/ pr of i ts i n shor t ter m50%For m onl i ne par tner shi ps wi th other s, to devel op mor e power f ulser vices11%35%48%Source: “Routes to Success”; FIPP, May 2006As the above chart shows, the main objectives behind extending magazine brands intoonline publications are to increase revenue streams and attract additional readers.However, online products often provide a very different offering to their print equivalent,and present another platform on which advertisers can reach consumers and a way ofinteracting more regularly with their readership.The Magazine MediaHandbook 200777

Consumer websitesAn increasing number of consumer publishers are extending their brands online.Hachette Filipacchi’s monthly women’s lifestyle title,Red, has been extended into online form.Using a combination of original content andresources taken from the printed publication, it hasallowed the publisher to leverage their brandthrough electronic distribution.Many readers of the printed publication will beattracted to the website, having built up an affinitywith the brand, whilst its online status also opens upthe magazine to an entirely new audience of webusers.Women’s weekly website Handbag.com is publishedby the National Magazine Company, and exists entirelyas an online offering.Monkey magazineIt was the first women’s website to be launched in theUK and attracts approximately 1.3 million ABCecertified unique users per month.The site draws upon the National Magazine Company’sexisting expertise in the areas of women’s fashion andlifestyle – with titles like Cosmopolitan, Prima and She- but does not use existing print magazine brandingand relies solely on original content.Weekly lad’s magazine Monkey breaks down the boundaries between print and digitalpublications even further.Marketing itself as “the freemagazine with explodingvideo and sound” it offersdigital output in the format of aprinted magazine.Readers are required to turn thepages in exactly the same waythey would a paper magazine,but can also choose to engagewith a range of multi-mediafeatures, streamed into thepages.The Magazine MediaHandbook 200778

Beyond printHowever, expansion does not end with accompanying websites. As the industryassimilates more and more technology, digital brand extension is becoming increasinglydiverse. Take Emap as an example, who in recent years have developed some of theirleading brands as television channels. Titles like FHM, Kerrang!, and Q, have capitalised onthe ability of their brands to draw television audiences, and the subsequent interactiverevenue that this can create.MediaWeek is another case in point of successful multi-platform expansion. Whilst thepublication still generates the bulk of its revenue from print advertising and copy sales(56 per cent), a variety of other sources now add to this income. These includeconferences and awards, sponsorship, and online offerings, including mediaweek.tv -anonline television station providing an on-screen offering of the magazine, presented bythe publication’s editor.50%45%40%35%30%25%20%15%10%5%0%Print RevenueMediaWeek % revenue breakdownConference &AwardRevenueBrandRepublicmediaweek.tvThe Magazine MediaHandbook 2007SponsorshipRevenueCirculationSource: MediaWeek, February 2007.79

The future of magazinesAs the UK magazine publishing industry evolves to assimilate new technologies, we seepublishers leveraging their brands in all mediums and across all formats. But what of thefuture of the magazine itself?The paper technology illustratedin the 2002 film Minority Reportmay hold some clues. Althoughobviously a work of fiction,director Steven Spielbergassembled a think tank ofscience and technology expertsto create as realistic a look atthe future as possible.Within these predictions arepaper products with electronicdisplays that are automaticallyupdated as the latest newsbreaks, combing the immediacyof online distribution with theavailability and popularity of ahand held printed publication.As Monkey Magazine in particular demonstrates, it is no longer merely content andcampaigns that are being fused across different formats, but the very technology of mediaitself is beginning to be thrown into flux. As the speed of change accelerates, bothpublishers and service providers are pioneering technological innovation in the magazineindustry.Ultra-thin, flexible batteryPeople will read whether they’re reading on a pieceof paper or a portable liquid screen that’s yet to beinvented. And I don’t think it matters to publishers.Andrew Swinand, president andchief client officer at Starcom USAThe Magazine MediaHandbook 200780

The future of magazinesThe displays are controlled by a printed circuit andcan be powered by a very thin printable battery ora photovoltaic cell. The goal is to be able to createthe entire device using the same printing method,so that manufacturing costs would be as low aspossible. Siemens expects to achieve this by 2007.Sony is also developing mediathat delivers a paper-likereading experience withelectronic capability.The product shown on the leftis already being produced.Significantly, it is lit throughambient lighting, rather thanscreen lighting, providing amore enjoyable readingexperience closer to that of amagazine than a computerscreen.Plastic Logic is building the first commercialmanufacturing facility to produce flexibleactive-matrix display modules for ‘takeanywhere, read anywhere’ electronic readerproducts.This will enable a digital reading experiencethat is much closer to paper than any othertechnology. The thinness, lightness androbustness enabled by the flexibility ofPlastic Logic’s displays will, at last, enableelectronic reader products that are ascomfortable and natural to read as paper…The Magazine MediaHandbook 200781

The Magazine MediaHandbook 200782

World leaderA Shrinking worldThe British economy has always been respected as a pioneer in the area of Internationalcommerce. As commercial barriers are eroded, English dominates as the world’sinternational business language. Publishers have become substantial exportearners for UK plc, capitalising increasingly upon new opportunities through launches,joint ventures, and acquisitions in other countries.Take China as an example. Educatingpeople to speak English is now such ahigh priority on the Government’sagenda, that there are expected to bemore English speakers in China thanthere are native English speakersthroughout the rest of the world by thetime the country hosts the BeijingOlympics in 2008.As a result, last year educationalpublisher Macmillan exported over 100million copies of their English languageprimary school text book, NewStandard English, to the country.An Expanding mediumThe UK magazine export market is growing swiftly, driven to a large degree by the UKpublishing industry. The magazine industry makes a substantial contribution to the UKmarket, with business media titles continuing to increase their worldwide reach. UKmagazine exports generate net revenue of £120m per year.The Magazine MediaHandbook 200783

International publishingDomestic vs. export share of consumer magazinesExport 6.5%Domestic 93.5%Source: Wessenden Marketing, 2007.Many of the UK’s leading consumer titles such as Haymarket’s Autocar and theTime Out Group’s flagship title, Time Out, now operate globally, producing regionaleditions appearing under a generic worldwide brand.The Economist now sells over three times as many copies in America as in its nativeBritish market. Latest ABC figures show the title’s year-on-year circulation growingby 4.34% in the UK, 4.73% across the rest of Europe, 7.51% in the Middle East,and 3.33% in Asia Pacific, where it now sells almost 120,000 copies per year.The Magazine MediaHandbook 200784

Worldwide trendsCustomer publishingThe rapid emergence of the customer sectorover the past decade has been influential in thegrowth of cross border publishing. Huge multinationalcompanies that have traditionallycultivated a world marketplace are teaming upwith international publishers, to deliver theirmessage and seek out their target audience.A case in point is Toyota’s customer magazineAYGO, which was launched at the GenevaMotor Show in 2005. Here we have a Japanesecorporation, enlisting UK publishing housePublicis-Blueprint, a subsidiary company of USowned Publicis Groupe, to create a panEuropean title that is published in 11 differentlanguages.Sales trendsIn most countries consumer magazine publishers get more revenue from copy sales than fromadvertising, although this trend is not true of two of the biggest magazine markets – the US andGermany.As is the case in China, sales in most developing markets continue to grow, fuelled by risingincomes and increasing literacy rates, but such growth is limited by inefficient or inadequatedistribution systems.Total advertising spendAdvertising remains a key contributor to magazine revenue the world over. Magazinesrepresent about 11% of the total annual worldwide ad-spend – an investment thatamounts to almost $56bn. Of course this figure is purely for printed publications, and doesnot take into account the growing number of online and digital ventures being launchedby publishers every year.The Magazine MediaHandbook 200785

Number of titles by countryCountryArgentinaAustraliaAustriaBelgiumBrazilCanadaChileChinaColumbiaCyprusCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHong KongHungaryIndonesiaIrelandIsraelItalyJapanLatviaTotal1,1418952,8824303,9751,1603266,0007882,680441852,2636,0156,0872,5087103041504284413,3154,370131CountryTotalLithuania484Mexico1,180Myanmar830Netherlands268New Zealand670Norway235Phillippines50Poland1,746Portugal153Quatar1Romania154Russia18,188Singapore24Slovenia1,075South Africa838South Korea2,043Spain417Sweden544Switzerland1,188Taiwan1,840Thailand1,390Turkey218United Arab Emirates223UK8,474USA6,234Source: FIPP “World Magazine Trends”, 2006/2007.The Magazine MediaHandbook 200786

Total number of copiessold (million) (2005) by countryCountryTotalCountryTotalArgentina87.5Italy1491Australia370Japan4207Belgium178.1Latvia8.5Brazil445Lithuania47.7Canada750.7Mexico512.8Czech Republic633Netherlands25.4Denmark98Poland793.2Estonia18.5Portugal51.7Finland392.1Spain372.3France2043Sweden33.5Germany3476Taiwan130.125Greece300.3Thailand20Hungary200Turkey29.2Ireland19.41UK1438Israel2.3USA2719.5Source: FIPP “World Magazine Trends”, 2006/2007.The Magazine MediaHandbook 200787

Total ad-spend by country(US$ million, current prices)CountryArgentinaAustraliaAustriaBelgiumBrazilBulgariaCanadaChileChinaColumbiaCzech RepublicDenmarkEgyptEstoniaFinlandFranceGermanyGreeceHong KongHungaryIndiaIndonesiaIrelandIsraelItalyJapanTotalAd-Spend6658180335865139564263753824006346122464,0364,8911,07337628727414152581,4793,590CountryKuwaitLatviaLithuaniaMalaysiaMexicoNetherlandsNew ZealandNorwayPhilippinesPolandPortugalPuerto RicoRomaniaRussiaSingaporeSouth AfricaSouth KoreaSpainSwedenSwitzerlandTaiwanThailandTurkeyUnited Arab EmiratesUKUSATOTALTotalAd-Spend4816184345498618635486661195533360307336996335662214211661662,96225,22855,545Source: FIPP “World Magazine Trends”, 2006/2007.The Magazine MediaHandbook 200788

Geographic breakdownTotal ad-spend $m30000250002000015000100005000Top 10 countries formagazine advertising0USAGermanyFranceJapanUKItalyGreeceSpainNetherlandsThe total ad-spend for the US is much higher than that of the rest of the world, some$23,902bn. Notice that the top four largest spenders after the US are significantlygreater than those that follow. Between them the UK & Ireland produce around twothirds of the number of titles produced by the rest of Europe, and receive aroundone third of the ad-spend.AustriaTotal ad-spend $m700600500400300200100Second tier 10 countries formagazine advertising0SwitzerlandPolandBrazilAustraliaCanadaMexicoCzech RepublicHong KongCharts Source: FIPP “World Magazine Trends”; PPA, 2006/2007.BelgiumNorwayThe Magazine MediaHandbook 200789

Worldwide readershipLike the UK market, most of the magazine markets across the globe are served by awide variety of indigenous magazines. And just like in the UK, readership of women’stitles and TV guides tends to be amongst the highest.TotalConsumerWomen's TitlesTV GuidesGeneral InterestSpecial InterestAustralia85.739.918.233.8Brazil83.077.075.088.075.0Canada98.023.07.023.020.0Columbia80.088.077.084.078.0Czech Republic91.334.677.837.438.8Denmark19.039.033.0Egypt19.85.124.016.050.0Estonia64.121.045.816.039.5Finland96.556.825.568.041.1Hong Kong34.0Hungary36.040.044.026.0Indonesia17.05.01.013.0IrelandItalyKuwaitLebanonLithuaniaNetherlandsPolandRussiaSingaporeSouth AfricaSpainSwedenSwitzerlandTaiwanUnited ArabEmiratesUKUSA68.162.728.848.096.477.394.036.455.042.093.735.252.277.410019.030.619.727.948.451.721.320.033.429.69.038.710013.07.20.618.870.137.910.914.02.649.410035.93.019.859.874.85.913.39.330.066.921.811.11001.020.63.621.687.219.52.529.119.067.010.511.7100Charts Source: FIPP “World Magazine Trends”; PPA, 2006/2007.The Magazine MediaHandbook 200790

Average issue readership ofconsumer magazines by country% of population of read a consumer title0.0 20.0 40.0 60.0 80.0 100.0 120.0AustraliaBrazil85.783.0CanadaColumbiaCzech RepublicEgypt19.880.091.398.0EstoniaHong KongIndonesia17.034.064.1Kuw aitLithuaniaSingaporeSouth Africa36.448.062.794.0SpainTaiw anUnited Arab EmiratesUK35.255.052.277.4USA100Charts Source: FIPP “World Magazine Trends”; PPA, 2006/2007.The UK’s average issue readership rate of consumer magazine is amongstthe highest in the world.The Magazine MediaHandbook 200791

Further readingThe Passion and Powerbooklet forms part of PPA’sRevolution initiative – to givenew help to planners faced withthe challenges of getting brandmessages across effectively inan era of growing advertisingdilution.PPA Magazines Uncovered provides a series of insightsinto the way in which magazines function.Sales Uncovered shows how magazines can be used tocontribute to a variety of sales-related campaignobjectives.Planning Uncovered explains how media planningtargets can be optimised through the use of magazinesCommunication Uncovered sets out how magazinescan boost campaign effectiveness.The Life of a Magazine provides a rough guide to theeffective use of readership accumulation data, whichallows planners to measure how quickly one issue willtake to build its total average issue readership.You can download PDF’s of all PPA Marketing publications athttp://www.ppamarketing.net/.The Magazine MediaHandbook 200792