Digital readership to fuel growth in consumer magazine space: PwC
In 2016, digital advertising will account for 15.1 per cent of the total consumer magazine advertising compared to 7.0 per cent in 2011
The global consumer magazine market is expected to begin to increase in 2012, averaging 1.3 per cent compounded annually to $80 billion in 2016 from $75 billion in 2011, according to PwC’s Global Entertainment and Media Outlook 2012-2016. Citing principal drivers for the growth, the report said, improving economic conditions will lead to modest growth in print advertising during the next five years. However, it also said that in real terms print advertising will decline but growing digital readership will fuel digital advertising.
The report expects the print advertising growth in consumer magazines to be a modest 1.5 per cent compounded annually to $31 billion in 2016 but expects digital advertising in consumer magazines market to grow by a compounded 20.8 per cent compounded annually to $5.5 billion in 2016. “In 2016, digital advertising will account for 15.1 per cent of the total consumer magazine advertising compared to 7.0 per cent in 2011,” it said.
In Asia Pacific region the print consumer magazine advertising is expected to rise from $6 billion in 2011 to $7 billion in 2016, a 3.2 per cent compound annual increase while digital advertising will total an estimated $684 million in 2016 from $250 million in 2011, a 22.3 per cent increase compounded annually.
Tarun Rai, President, Association of Indian Magazines said, “Digital allows us to reach our content to a much larger audience. The numbers are racking up and the revenues will follow.” He also said that rising disposable incomes and aspirations with more accessible brands will drive the growth of lifestyle and special interest magazines in India. “The base is still small but the growth is pretty robust. And we are not talking of 1.2 per cent growth but a healthy double digit growth for these magazines,” he said.
“The industry was not very sure about how to embrace the digital medium, which slowly it came to terms with. Now the online and the iPad versions have added new lease of life to the industry. It cuts production and distribution costs dramatically and with more and more people embracing digital, this is bound to add significant muscle to the industry's topline and bottomline,” said Mitrajit Bhattacharya, President-Publisher, Chitralekha Group.
Total advertising in consumer magazine market in Asia Pacific is expected increase at a 4.3 per cent compound annual rate from $6.2 billion in 2011 to $7.7 billion in 2016.
Digital circulation to begin to offset print circulation declines in 2015
PwC expects reduction in global print circulation by 1.6 per cent compounded annually during the next five years to $40.9 billion from $44.2 billion in 2011. “A digital circulation spending market is developing that will total an estimated $2.9 billion in 2016. Gains in digital circulation spending will begin to offset declines in print in 2015. Total circulation spending will decrease to $43.7 billion in 2016, a 0.3 per cent compound annual decline,” it said.
“In Asia Pacific region the circulation spending will continue to decline through 2013 before rebounding in 2014 and rising to $12.3 billion by 2016 from $11.7 billion in 2011, a 1.0 per cent compound annual increase. Print circulation spending will fall at a 0.2 per cent compound annual rate to $11.6 billion in 2016. An emerging digital circulation spending market will total an estimated $709 million in 2016,” said the report.
Overall in the consumer magazine market, Latin America will be the fastest-growing region by a healthy margin, with a 5.3 per cent compound annual increase to $5.1 billion from $3.9 billion in 2011. Asia Pacific is estimated to be a distant second, with a 2.2 per cent compound annual gain to $20 billion from $17.9 billion in 2011. EMEA, the largest region, at $32.6 billion in 2011, will increase at a projected 0.2 per cent compound annual rate to $32.8 billion in 2016. North America will increase by 1.7 per cent compounded annually to $22.5 billion in 2016 from $20.8 billion in 2011.
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