NEW DELHI, August 15: Global magazine ad revenues are expected to grow faster than that for newspapers and radio. Magazine ad revenues are expected to increase by 5.5 percent and reach $25.7 billion in 2009. This is a significantly brighter outlook than the advertising growth predicted for both newspapers (3.7 percent) and radio (4.3 percent). These predictions have been made in the PricewaterhouseCoopers Global Entertainment and Media Outlook: 2005-2009.
In the United States, new launches in an upbeat economic environment are expected to boost consumer magazine advertising in the near future, though competition from digital media is expected to cut into long-term growth. US advertising is expected to total $25.7 billion in 2009, up 5.5 per cent on a compound annual basis. Combined circulation spending for b2b and consumer magazines is expected to grow annually at 3.2 per cent to $15.6 billion.
In Europe, new genres are expected to expand the market and sustain circulations, although it is in the developing markets where luxury advertising is increasing which will see the most growth. While France, the United Kingdom, and Germany were the three largest magazine markets in Europe, Middle East and Africa (EMEA) in 2004, at $8.5 billion, $7.2 billion, and $6.7 billion, respectively, growth in Western Europe has been pegged at just 3.7 percent.
In contrast, Central and Eastern Europe is expected to see an annual growth of 11.7 percent, and Middle East and Africa 6.7 percent. In Asia-Pacific, advertising is expected to increase at a 4.5 per cent compound annual rate, from $6.1 billion in 2004 to $7.6 billion in 2009. Excluding Japan, the PwC report believes the rest of the countries are set to see annual growth of 6.0 per cent.
After three difficult years, there is a brighter outlook for Latin America. Increased urbanisation is expected to mitigate distribution problems, while low-priced newstand titles and increased subscriptions are set to boost circulation spending. The improved economic conditions, the report says, will attract more foreign investment which will help stimulate magazine advertising. Advertising is expected to grow at an annual rate of 5.5 per cent.
In Canada, circulation will continue to be adversely affected by the demise of stamp sheets. However, improved economic conditions, the ability to target niche audiences, and the emergence of shopping titles are expected to fuel growth. Advertising is forecast to grow 5.3 per cent annually.
