The consumer magazine advertising market in Australia will continue to decline over the next few years, but should bottom out by 2016, according to PwC.
The PwC Entertainment and Media Outlook has predicted Australian consumer magazine advertising will decline at an average compound annual growth rate (CAGR) of 2.7% to $474 million in 2017.
2013 will see a decline of 8.8% to $497 million, with a further 5.1% decline in 2014 to $471 million. Digital advertising should begin to make a sizeable contribution by 2017, with 3% growth in that year bringing the market back up to $474 million.
Meanwhile, the global forecast for
advertising in over the coming years is almost the opposite of the
local market. 2013 will bring a 1.1% increase, while 2014 will bring
a 0.6% boost. 2015 will see it increase by 0.4%, followed by a 0.3%
increase in 2016, and then a decline of 0.3% in 2017.
The Australian consumer magazine market has experienced some of its toughest times in recent years mainly due to readers and advertisers rapidly adopting digital platforms. The proliferation of media and tough economic climate have added to the sector's troubles.
2012/13 has seen several closures and launches of titles as the major publishers consolidate their profiles. Magazines including Grazia, Madison, Burke's Backyard and FMH were axed, while titles including Women's Fitness and TechLife were launched. Bauer Media will roll out the first issue of its highly anticipated women's magazine Elle in September.
"Over the next three to five years, the publishers will need to continue managing costs, grow the circulation of enhanced digital magazines to increase their viability, and develop e-commerce strategies that suit their brand and market presence," the report says.
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