Folio reports a 29.5% drop in consumer magazine ad pages in the United States in the second quarter of this year. Erck Sass, writing at MediaPost comments about how 2009 looks:
At this rate, 2009 is shaping up to be the worst year for consumer magazines since 1932, when total revenues dropped 30%.
Ad revenue is crucial to the magazine model. A sustained decline will see more closures.
While analysts continue to say that Australia has dodged a bullet in terms of economic performance, I don’t think we can be certain about this for magazine sales. Sales are rocky – across all channels from what I understand.
The best operations tactics for newsagents in this tough magazine market are:
- Keep the display fresh.
- Use high traffic areas to offer titles customers are less likely to look for.
- Play to your key points of difference – magazine range and service.
- Engage with a value proposition. The Magazine Club Card I created in 2004 continues to drive customer loyalty in the magazine category.
- Embrace change.