• by Michael Shields , November 8, 2004

Magazine advertising continues to demonstrate sustained growth, as October marked the sixth consecutive month of increases in ad pages and revenue and the second straight month of pages growing by more than 8 percent versus last year.

Pages soared by 8.4 percent totaling 23,653 total pages, while the month's $2,156,283,915 in revenue represented a hefty 14.4 percent surge versus October 2003, according to the latest Publishers Information Bureau (PIB) data.

After a weak start, 2004 appears to be shaping up as a solid year for the business, baring a late collapse. Pages are now up 3 percent for the year, at 187,953 total, with revenue having climbed by a robust 10.3 percent clip.

While the best news for the industry was the size of growth seen in the last two months, the range of growth in October was particularly encouraging, as 11 of 12 major categories exhibited increases. Those two factors may be the result of both a more stable economy and perhaps even a growing respect for the medium's strengths.

"The most positive thing is the size of the growth we are seeing," said Ellen Oppenheim, the executive vice president and chief marketing officer of the Magazine Publishers of America. "I think part of it is the [current ad] recovery. Plus as more advertisers are stressing accountability, magazines have been shown in several studies to improve such results. That certainly could be a part of it."

Four categories posted double-digit gains in October: automotive, apparel and accessories, food and food products, and media and advertising. Also impressive were the financial, insurance, and real estate markets recording an eighth consecutive month of increases.

While major growth from auto advertisers has been a crucial driver in the past few months, the increased spending in the food category may indicate that magazine advertising is becoming less reliant on cyclical spending during this recovery period.

"Every economic cycle has its own unique factors," said Oppenheim. "For example, home furnishings held up very well during the downturn... spending was made up of categories that are clearly more economically sensitive."

That's not necessarily true for food advertisers, which tend to operate more conservatively. Such growth, therefore, "bodes well for the future," said Oppenheim.

"If you look at the whole year, the finance and travel categories - these companies feel better about the future than a year ago." Year-to-date, seven of the 12 major advertising categories saw an increase in PIB revenue and pages.

But any predictions on 2005 spending would be premature at this point, as budget approvals are dependent on so many different factors, and many companies are spending ad dollars in a more reactive fashion.