Tuesday, June 15, 2010

New report throws cold water on those waiting for an advertising rebound this year for magazines

A new report by PricewaterhouseCoopers predicts that advertising will remain weak for the next few years with ad levels still nine percent below 2006 levels in 2014, though growth will be seen soon the report predicts.

"We expect a relatively flat market in aggregate global advertising and consumer/end-user spending in 2010, improved growth in 2011 and a return to mid-single-digit gains during 2014," the report concludes.

For magazine publishers, the news continues to be bad, with PricewaterhouseCoopers predicting that global ad spending will fall an additional 2.7 percent this year, with a flat market in 2011, before rebounding somewhat in the years to follow. The B2B segment can expect small, but consistent declines to continue, according to the report.

The study reinforces the notion that the move to digital is unstoppable and will continue to force media companies to look at the their businesses and the prospects for their print products.

"Digital migration and the changes in consumer behaviour have put extreme pressure on existing business models," the report states. "It has caused the industry to radically rethink its approach to monetising content as it strives to capture new sources of revenue, be it from transactions or from participation with others operating in the evolving digital value chain."