• by Michael Shields , August 9, 2004

Consumer magazines experienced their third consecutive month of growth in July, indicating that the industry may be putting behind itself the extensive declines seen recently, which saw 11 straight months of falling ad spending.

Revenue for all rate-card-reported advertising increased 11 percent in July 2004 versus last year, while perhaps more significant, ad pages increased 3.1 percent during the same period, according to Publishers Information Bureau (PIB).

For the year, revenue is at $11,147,991,751--an increase of 7.8 percent--with ad pages totaling 123,673.63, representing just a 0.8 percent gain.

July's gains were led by double-digit page and revenue increases in three categories: Media & Advertising; Financial, Insurance & Real Estate; Home, Furnishings & Supplies; and Public Transportation, Hotels and Resorts. It appears that a recovering tourism industry and a booming home market are contributing to this growth.

"Financial, Insurance & Real Estate in particular, up for the fifth month, benefited from ads for banks and investment services," said Ellen Oppenheim, executive vice president/CMO, Magazine Publishers of America. "Public Transportation, Hotels & Resorts--also an economically sensitive category--saw increases across a range of sectors, including hotel, airlines, cruises, and destinations," she said.

Oppenheim referred to the fact that the increases in the top categories are being fueled by numerous sources rather than one particular brand or industry as a positive sign of continued strength in the magazine business.

As a sign of that consistency, half of the 12 major advertising categories (representing 85 percent of total advertising spending) recorded both page and dollar increases in July.

Oppenheim tempered her enthusiasm over the new data, warning that "it's never a straight line" when tracking ad recoveries, and that short-term dips can be expected.

Indeed, the modest nature of July's growth appears indicative of the still-stalling consumer magazine advertising business, which has been affected by hesitancy and a general increase in the level of scrutiny among marketers.

"People walk back in trepidatiously," said Oppenheim of such recoveries. Plus, this year, more and more brands are examining ad effectiveness overall under a much harsher light. "A lot of marketers are taking a look at advertising in general," said Oppenheim.

If anything is dragging down the magazine's ad recovery, it is Detroit.

"Overall, the category that is most [down] is auto, which is the largest," said Oppenheim. Several launches planned late in the year may yet salvage this category, which is down 5 percent for the year. However, Oppenheim was wary of drawing any conclusions. "It is premature to call auto," she said.