Despite the ongoing slowdown and curbs on advertising spends, the magazine industry is expected to register 3-5 per cent growth this fiscal, with publishers hoping for an increase in advertising revenue due to launch of more titles.
Magazines registered 12 per cent average growth in 2008 over 2007, primarily led by an increase in ad spends on English language magazines.
However, the latest projections of GroupM, a leading media agency, forecast a dip of 4 per cent this fiscal in the overall size of the magazine category that stood at Rs 850 crore in 2008-09. mConsult, GroupM’s strategic marketing consultancy unit that tracks various media platforms, says, “...At an overall level, all signs indicate a drop in magazine revenues in 2009 from 2008.”
Nevertheless, magazine publishers are upbeat about bucking the forecast of a dip in overall growth of the magazine business. In fact, magazine publishers feel there could be close to 3-5 per cent increase in the overall size of their business this fiscal due to an increase in advertising spends on the medium. The current affairs and news genre is slated to show 5-7 per cent growth, while the magazines in the women genre will grow about 4 per cent, led by consumer goods advertisers, say publishers of leading magazines.
According to Umesh Kumar, publisher, RPG Publications, the size of the current affairs magazine segment may cross Rs 315 crore, from Rs 300 crore in 2008-09. And this will be mainly due to an increase in ad spending towards the second half of this fiscal. Industry experts say advertisers use magazines for three fundamental reasons — for brand building, for reaching out to a more segmented target group (TG) and to provide a better contextual environment.
“Under the current circumstances, when every advertiser is hard pressed for budgets, magazines hold the promise of reaching out to more upmarket and focused TG than any other media,” said Kumar, the publisher of Open, a current affairs magazine for upscale readers that was launched recently by the RPG Group.
Agrees Maheshwer Peri, publisher, Outlook Group of magazines. “It’s not a secret that magazines have taken a hit on their advertising revenue targets, especially in the last six months of 2008-09, due to the slowdown. I see growth in youth-centric magazines, be it news or any other genre. We will be back on track this fiscal,” said Peri.
According to industry estimates, out of Rs 850 crore, English language magazines account for 75 per cent to 80 per cent marketshare. Of this, the news and current affairs genre accounts for around 47 per cent and the women’s magazines 32 per cent. Publishers are upbeat about magazines due to some of the recent launches that have found distinct advertisers. This year has seen the launch of RPG’s Open, Pathfinder Publishing’s maiden title Career’s 360, Technology Review, Harper’s Bazaar, Delhi Press’ The Caravan and Live IT, Images Group’s FNL and Salon, Gill India Communications’ What Women Want, and Lifestyle Living.
Even the GroupM report acknowledges growth in the magazine business in 2008-09 due to the addition of new titles. “The launch of niche brands on the one hand and new titles on the other led to a boost in magazines that began in mid-2007 and continued in 2008. The year saw the launch of at least 20 new titles spanning different niche segments, attracting additional advertising investment sufficient to sustain the medium’s 4 per cent share of a rapidly-growing ad market.”
However, for 2009-10, all signs indicate a drop in magazines’ revenues, the report says. This is because corporate and brand advertising may come down this fiscal, while IT and services are expected to barely maintain their level of investment. “This does not augur well for business magazines which are heavily dependent on these categories for their advertising revenues,” said Juhi Ramakrishnan, director, mConsult.
