Magazine Spending Jumps 10%

An uncertain economy and the threat of war and terrorism weren’t enough to stall the magazine industry’s charge back up the hill in February. Total magazine advertising revenues for the month increased 10.2% over February 2002, totaling $1.2 billion. Big increases in spending by automotive and pharmaceutical advertisers helped push ad pages up 1.8%, to 15,593, while revenues jumped 9.8%, to $2.1 billion according to the Publishers Information Bureau.

The hottest title of the month remained Time Inc.’s Real Simple. With ad pages up 78% over 2002 levels, and mid-recession ad revenues up an astounding 137% to $5.7 million.

While apparel and accessory advertising fell 22% in terms of pages, women’s titles largely posted higher page counts in February thanks to higher spending levels among cosmetics companies, automotive, and retailers. Lucky continued its strong showing, with a 98% increase in ad pages, although Time Inc.’s In Style, which saw pages jump 180% last month, bested its growth rate. Nearly all others increased as well: Allure (+38%), Elle (+45%), Glamour (+19%), Jane (+57%), Marie Claire (+18%), More (+39%), and Vogue (+21%), among others. A seeming lone exception was Primedia’s Seventeen, which saw ad pages fall 26% over 2002 levels. The teen fashion title is presently being shopped by Primedia and may be spun-off shortly.

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Among the men’s titles, the battle for ad dollars continues to remain fierce although old-line titles like GQ and Esquire are showing signs of renewed strength. Ad pages in Condé Nast’s GQ increased 12% in February, while Hearst’s Esquire had an11% increase. Even so, the largest increases remained in the younger-skewing “laddie titles.” Dennis Publishing’s Stuff increased ad pages by 40%, while sister title Maxim’s grew 38%. Condé Nast’s Details is also finding success positioning itself between the “laddies” and the more traditional titles. Details pages jumped 33% last month.

Despite the threat of war, or perhaps because of it, advertisers spent more money in the newsweeklies last month, as advertisers banked that the news of the day would increase readership. US News & World Report’s ad pages surged 25%, while Newsweek saw pages rise 22% and Time Inc. flagship Time saw a 12% increase.

On the flipside, business titles continued to feel the pain of an economic downturn and a weak stock market performance. BusinessWeek, Fortune, The Economist, and Barron’s all saw double-digit decreases in ad pages. There were signs of life, however. Time Inc.’s Money improved its page count by 6%, although Forbes continued to outpace others in the category, growing ad pages 37% over last year. Forbes publisher James Berrien says the market remains tough, however. “Companies are trying to decide whether or not they want to advertise on a quarter-by-quarter basis or whether they want to put it to the bottom line. So the third quarter of every quarter is the hardest month to sell, because people are waiting internally to see whether their numbers are like before they release money for their ads,” says Berrien. Elsewhere, RHC Media’s now-defunct Red Herring closed February with a 4% increase in ad pages, but revenues fell 6% to just $931,000. The magazine ceased operations last earlier this month.

For the second straight month, Martha Stewart Living continued to see its advertising pages decline, falling 15% in February. That follows a 29% drop in January. In a company conference call earlier this month, Stewart said the government’s continued investigation into her personal finances is taking its toll on the company. “Until this situation is resolved, we will likely continue to face challenges throughout our businesses,” adds MSO president and chief operating officer Sharon Patrick.

A spate of redesigns in the women’s service category is apparently attracting new ad dollars to the sector. Ahead of its March redesign, Meredith’s Ladies’ Home Journal saw ad pages increased 45%, although just ahead of its redesign, Hachette Filipacchi Media’s Woman’s Day posted a 5% drop. Elsewhere, Hearst’s Redbook saw a 55% increase in pages, while Gruner + Jahr’s Family Circle grew 36%, and Meredith’s Better Homes & Gardens climbed 27%.

According to the Publisher Information Bureau, eight of the twelve major advertising categories experienced an increase in advertising revenue over February 2002, while seven of twelve recorded ad page growth. “We are pleased to track growth in ad revenue and pages, in light of continued economic and political uncertainty,” says MPA executive VP Ellen Oppenheim.

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