Commentary

Fitness, Diet Aids and Spas Boost Drug Ad Spending

Fitness, Diet Aids and Spas Boost Drug Ad Spending

According to figures recently released by the Publishers Information Bureau, total magazine rate-card-reported ad revenue for the first quarter rose 6.9% compared with the same period last year, closing at $5.3 billion. Ad pages were up 1% for the quarter. Total PIB revenue for the month of March 2007 increased 8.8% compared to last year, closing at $2,282,204,898.  Ad pages totaled 22,388.48, up 2% from March 2006. 

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Ten of the 12 ad categories tracked by PIB posted ad revenue gains, including drugs & remedies, retail, and food and food products. Ad categories that posted revenue declines included home furnishings and supplies, and financial, insurance and real estate.

Considering business books in the first quarter:

  • Ad revenue for BusinessWeek was up 2.2%, while ad pages fell 3%
  • Forbes' ad revenue was up 2.2%, while ad pages were down 8.9%
  • Ad revenue for Fortune fell 5.4%, and ad pages declined 13%
  • The Economist's ad revenue rose 29%, while ad pages were up 14% 

From January through March of 2007, half of the major advertising categories posted both PIB revenue and page gains, including Drugs & Remedies; Food & Food Products; Direct Response; Retail; Media & Advertising; and Public Transportation, Hotels & Resorts. Three categories posted double-digit dollar increases: Drugs & Remedies (20.4%); Retail (19.5%); and Food & Food Products (11.7%).

Ad Revenue and Pages for 1st Quarter, 2007 (% change from 2006 as of April 9, 2007)

Class 

2007 Dollars

%Chg

2007 Pages 

%Chg

Drugs & Remedies 

596,179,028

20.4

4,445.39

13.7

Apparel & Accessories 

464,891,813

7.9

5,577.08

-1.2

Toiletries & Cosmetics 

457,605,721

6.5

3,412.56

-1.1

Food & Food Products 

449,565,962

11.7

3,002.08

7.3

Direct Response Companies 

449,050,993

7.1

4,560.95

3.6

Automotive 

425,206,468

0.4

3,882.52

-3.7

Retail 

382,474,668

19.5

4,035.22

9.2

Media & Advertising 

353,811,062

8.8

2,992.62

2.5

Home Furnishings & Supplies 

262,823,003

-14.0

2,483.12

-15.5

Public Transportation, Hotels & Resorts 

260,774,715

6.0

3,307.57

2.5

Financial, Insurance & Real Estate 

256,162,052

-10.2

2,784.57

-10.8

Technology 

233,533,543

0.7

2,335.78

-6.8

Source: Publishers Information Bureau (PIB), April2007

Ellen Oppenheim, Executive Vice President/Chief Marketing Officer, Magazine Publishers of America. said "While medicines and proprietary remedies account for most of the spending in Drugs in Q1, it's interesting to note that fitness and diet aids, and spas, boasted the biggest boost in spending within that category. Advertising for health-oriented food products, as well as ads for condiments, seasonings, ingredients and beverages aided the page growth in Food. In addition, a range of companies targeting both high-end and mass market shoppers contributed to overall Retail category gains."

 "Finance and Home experienced the most softness during the first quarter. And Automotive, while down in pages, experienced some positive shifts within the category, with dealerships overall and some manufacturers and suppliers spending more," remarked Ms. Oppenheim.

 Six of 12 major advertising categories posted PIB revenue and page increases in March 2007. Double-digit dollar growth was recorded by five categories: Apparel & Accessories (11.9%); Retail (21.1%); Drugs & Remedies (28.7%); Food & Food Products (30.8%); and Public Transportation, Hotels & Resorts (10.2%). On the pages side, double-digit gains were seen in Retail (10.4%); Drugs & Remedies (18.6%); and Food & Food Products (19.7%).

Ad Revenue and Pages for March, 2007 (% change from 2006 as of April 9, 2007)

Class

 2007 Dollars

%Chg

 2007 Pages 

%Chg  

Apparel & Accessories 

254,132,705

.9

2,725.44

0.2

Retail 

240,322,967

21.1

2,412.63

10.4

Drugs & Remedies 

223,412,917

28.7

1,682.81

18.4

Toiletries & Cosmetics 

205,401,202

3.6

1,559.45

-2.3

Food & Food Products 

188,552,464

30.8

1,267.44

19.7

Direct Response Companies 

171,987,500

7.5

1,761.76

2.1

Automotive 

153,292,173

-11.0

1,472.56

-13.8

Public Transportation, Hotels & Resorts 

129,726,134

10.2

1,586.85

7.5

Media & Advertising 

124,388,857

4.2

1,071.29

-4.8

Home Furnishings & Supplies 

114,048,097

-14.1

1,097.22

-15.1

Financial, Insurance & Real Estate 

100,952,222

-8.9

1,094.07

-8.6

Technology 

85,866,108

-6.1

880.10

-6.6

Source: Publishers Information Bureau (PIB), April2007

More information is available here.

 
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