Revenue for B-to-B Magazines Flat Over 3 Years
Highlights from ABM’s 2005-2007 Financial Trend Report.
Total revenue generated by b-to-b publications was down slightly in 2007 and flat over 2005, while editorial, advertising and circulation expenses continue to grow.
This, according to American Business Media’s Financial Trend Report, culled from data provided by 18 b-to-b media companies—including McGraw-Hill, Nielsen and Reed Business Information—across 118 publications during the three year period between 2005 and 2007, prepared by the Jordan, Edmiston Group.
The report does not include data from 2008, during which b-to-b magazines tracked by ABM’s Business Information Network showed a 6 percent slide in revenue in the first half.
Total revenue for the average b-to-b publication was $5.47 million in 2007, a decline of .4 percent over 2006 and flat over 2005.
Print advertising accounted for 84 percent of the average b-to-b title’s revenue—a share that has held steady over the three-year period. "Evolving print’s relevance is a key objective of b-to-b media brands," the report said.
Net advertising revenue ($4.11 million) declined 1.8 percent in 2007. Display advertising fell 5.2 percent, but the decline was offset by an increase in price, as the net ad revenue per page ($6,250) rose 3.6 percent in 2007, according to the report.
The pressure “to maintain print circulation continued as the expansion of online information resources eroded readers’ need for paid subscriptions to b-to-b print magazines. In 2007, total circulation receded 2.9 percent, but up slightly over 2005.
Operating expenses, meanwhile, were essentially flat in 2007, showing compound annual growth of “a modest 2 percent,” according to the report.
But the flattening was, in part, due to a reduction in print volume and circulation, the report said. The average number of issues per publication was 18.8 in 2005 and 18.5 by 2007. The average press run and the total pages per publication also declined, by (3.5%) and (6.9%), respectively, in 2007 alone, “significantly reducing” the cost of production.