Ways Magazines are Finding Revenue
Posted by Betsy Brottlund on December 30, 2008 in Internet Marketing, Uncategorized [ 0 Comments ]
Recent reports show magazine revenue steadily decreasing. In fact, according to the United States Publishers Information Bureau (PIB), total magazine rate-card-reported advertising revenue through the first three quarters of 2008 posted a 5% decline against the previous year. Additionally, there was a 9.5% drop during the first three quarters of 2008 in advertising pages, compared to the same period in 2007. Specifically, for the third quarter of 2008, total magazine rate-card-reported advertising revenue decrease 8.8% compared to 2007’s third quarter. In addition, there was a 12.9% drop in advertising pages compared to the third quarter of 2007.
The magazine industry argues that magazine advertising has been negatively impacted by the ongoing economic woes, similarly to several other industries. Ellen Oppenheim, Executive Vice President and Chief Marketing Officer of Magazine Publishers of America stated “We’re seeing the unfortunate result of the ongoing softness in the economy. . .Consumers have cut spending and advertisers have followed suit. It’s affected every ad category and every ad-supported sector of the media industry.”
A closer examination of magazine revenues evidences that while overall magazine rate-card-reported advertising revenue, publishing, and advertising page count declined, some advertising categories posted gains. For example, retail, food and food products, and public transportation, hotels, and resorts are three advertising categories that showed increased revenue. Overall, though, magazine revenue is unfortunately steadily declining.
So, how can the magazine industry and other industries remain alive and increase revenue?
By finding other ways to produce revenue online. Banner ads, revenue share affiliate programs, and lead generation are just three examples to help drive down the total cost of acquisition per customer and increase revenue.
See Resource Nation’s online marketing business service center to connect with companies to help you with your marketing needs.
Banner Ads, also referred to as web banners, banner ads are beneficial because they can be customized with multiple images, animation, and changing colors.
Revenue Share Affiliate Programs are another way magazines and online businesses are increasing revenue. Affiliate programs allow businesses to earn a share of the profits each time the magazine refers a customer to the business. If the business provides a service that is an added-value to the magazine’s online readers, the size of the profit share can be significant. Amazon.com has been successful in its affiliate program. Our program has also been successful for partners like Entrepreneur.com and StartUpNation.
Lead Generation is also becoming more and more popular. Essentially, a lead is someone who either signs-up for a product or service or signs up to receive more information about a product or service. Magazines and companies are implementing these tactics to connect with prospective customers. Examples of lead generation marketing include online lead generation, direct mail, telemarketing, and email marketing.
The online advertising industry is a billion-pound industry with hundreds of millions spent on online acquisition campaigns alone. From Pay-Per-Click (PPC) advertising on search engines like Google and Yahoo!, to banner ads, email campaigns, organic search, blogging and web PR, magazines and other businesses are making an investment to find additional revenue.