UK consumer magazines Two-tier market opens up Douglas McCabe +44 207 851 0910
[email protected] Thomas Caldecott +44 207 851 0914
[email protected] 31 July 2014 Executive summary • This is the first of a two part report on the UK consumer magazine sector – In the first part we focus on consumer demand for print magazines, genre analysis, magazine advertising and publisher performance – We also provide advertising forecasts in print and digital to 2018 – The second part of our report will cover the digital and innovation landscape including a case study of Good Housekeeping’s transformation strategy, which is being launched in Q4 2014 • Magazine circulation decline has accelerated, with paid magazine volumes falling 10% last year – about 1.6m magazines per week • Circulation revenue also fell 10%, as a result of the most intense discounting in the sector since 2010, offset by cautious price increases • Print advertising decline accelerated in 2013 to -8% while digital grew by 12%, the sector falling about 5% (£30m) in aggregate. Digital advertising (£91.5m) now represents about 15% of total magazine advertising • We forecast print advertising decline in 2014 of -6%, which assumes a strong second half • Digital editions are failing (only one title is selling to 20k consumers) and digital advertising rates are under relentless downward pressure. Importantly, they are generally measured by ROI, diminishing the importance of media environment and consumer engagement – a battle the industry has to take on more