OF MAG-NITUDE
Over the last couple of years, though TV may have become the favourite medium of marketers to reach out to consumers, print still hasn’t lost its sheen, and takes home an admirable 43% of total ad revenues. The Pitch Madison Media Advertising Outlook 2012, brought out by Pitch magazine, a sister publication of IMPACT from the exchange4media Group, in collaboration with Madison World, reviewed the ad revenues garnered by the magazine industry and came up with a report. Here are some findings from the report, which includes perspectives of publishers, editors, marketers, analysts and admen on how they view magazines as a media vehicle and the scope for growth of the industry. There has been a lot of action in the magazine industry in the last few years. Even as newspapers directly compete with television, they are also trying to take on the ‘analytical’ mantle originally donned by magazines. Therefore, magazines too have had to evolve. A few years ago, while most magazines were news-focused, the trend is changing, and many new titles are being launched in spaces like business, lifestyle, technology, sports and hobbies. Many international publishers have launched their titles in India. The move to digital and mobile devices has been another area where magazines have been active. At the same time, as the economy accelerates, B2B magazines have seen a strong growth. This has roped in new sets of advertisers to magazines. Traditionally, personal care and fashion were the biggest advertisers. Lately, new categories like consumer durables, automobiles, healthcare, education, travel and luxury too have started advertising in magazines. Considering the evolution, the exchange4media Group’s monthly magazine Pitch in association with Madison World decided to review the ad revenue size of the magazine industry. It revealed how big the magazine industry is, and the tremendous scope it has, with new upcoming genres. Despite the digital boom, the reality remains that a large chunk of India is still Internet-deprived and depends for news on newspapers and TV. For analysis and opinions, the space is filled by magazines. The scenario is not going to change soon. While readership of magazines as reflected in the quarterly Indian Readership Survey (IRS) is constantly on the decline, as per the Pitch Madison Media Advertising Outlook (PMMAO) findings, the magazine industry stands at Rs 1,149.5 crore. Put together, the India Today Group, World Wide Media, Outlook Group, Delhi Press and Malayala Manorama Group command almost 45% of the pie. Other big players include Spenta Multimedia, Infomedia18 and Condé Nast India. But overall, considering the slowdown in the economy, revenue growth for magazine publishers, especially English, remained flat. The months November and December of 2011, followed by the first three months of 2012, have been bad. Ashish Bagga, CEO, India Today Group, describes 2011 as “a roller-coaster year”. “The year started on a positive note and saw revenue growth at expected levels. But the onset of the second half brought in caution,” he says. Amrit Rai, Publisher, Elle India, feels lean and effective measures were adopted in 2011. “No new launches were planned and only brand extensions that would have connectivity were introduced. In 2011, we felt it was better to consolidate rather than expand,” he says. NEW ADVERTISERS ENGAGING ENOUGH The strength of a magazine lies in building engaged communities of readers who place immense trust in the editorial philosophy of a magazine. Anant Nath, Director, Delhi Press, says, “Even the most general interest magazines do so when compared with traditional mediums. When placed in a magazine, ads get all the advantages of an uninterrupted, non-intrusive, active, and repeated exposure.” Says Mitrajit Bhattacharya, President & Publisher, Chitralekha Group & Vice President, Association of Indian Magazines (AIM), “Magazines really work for advertisers in an increasingly cluttered media environment. Ads in magazines cannot be avoided and are a part of the overall experience.” HAPPY MARKETERS There is another set of advertisers, who look at magazines beyond shelf-life and target a particular set of readers. According to Murgavel Janakiraman, Founder and CEO, BharatMatrimony.com, each medium has its own strengths and weaknesses. “We have found that magazines allow us to reach highly targeted audiences in a more focussed manner,” he affirms. Another big advertiser in magazines is Hindware, which spends anything between 40-60% of its ad revenues on the print medium, especially magazines across genres. “At Hindware, our target audience lies across the strata of society, which is why magazines are a vital component in our marketing mix,” says Santosh Nema, President, Hindustan Sanitaryware & Industries Limited. THE CREATIVE EDGE Adman Emmanuel Upputuru agrees with Nema. “Magazines are more open to innovations and possibilities. The fact that it is more economical than newspapers gives you leeway to be more experimental,” he says. As there is no immediacy such as in the case of newspapers, he also feels that magazines give creative men and even the reader the luxury of time. THE DWINDLING READERSHIP? Pratiyogita Darpan and Saras Salil, placed second and third respectively, have also seen a decline. India Today, one of the two English magazines in the top 10 list, saw a dip in AIR to 16.11 lakh in Q4, down by 1.52% from the previous quarter. However, magazine publishers argue the case for a better measurement system for magazines. Bhattacharya feels that surveys like IRS are largely designed to capture newspaper readership, and fail to address the concerns of the magazine industry. Hence, according to him, there is an urgent need to create a currency that takes care of the requirements of the magazine industry. THE NICHE WAY Adds Sandeep Khosla, CEO (Publishing), Infomedia18, “Contrary to belief, we have experienced a huge traction for special interest magazines resulting in advertising growth in them. Even when general as well as entertainment (film) magazines are rapidly losing out to other mediums, good quality, relevant content, from special interest magazines, will continue to increase traction.” DIGITAL: A BOON Meanwhile, Smiti Ruia, Founder of Paprika Media (Time Out magazine) has a word of caution. “Digital is not a one-way communication channel. It is about having a direct conversation with the reader.” She feels that publishers have to understand this paradigm shift to a completely different format and the teams need to adapt to the new audience and tool. THE WAY AHEAD The final word comes from AIM President Tarun Rai, who feels that the industry deserves more attention from advertisers. “We can do more to get their attention. Our aim is to raise the profile of our industry and we are focusing on it this year,” he states. 10 TAKEAWAYS FOR THE MAGAZINE INDUSTRY Engaged, and engage more... ( With inputs from Shree Lahiri, Dipali Banka, Deepika Bhardwaj and Neha Goel )
Amidst all the gloom, cheer came in from new categories exploring magazines. According to Maheshwar Peri, Chairman & Publisher, Pathfinder Publishing and former Publisher of Outlook Group, the categories that saw more spending on magazines included lifestyle and travel. Other categories that have increased their share in the print ad pie include clothing, fashion, jewellery, government/social ads, watches and luxury cars.
The very fact that international magazine publishers are launching new titles here means that they view India as a big opportunity. According to Tarun Rai, CEO, Worldwide Media, “While it means more competition, it also means that the combined activity of all these new players will only help raise the decibel levels for the magazine industry.”
Are marketers in sync with publishers as far as the issue of engagement in magazines is concerned? Suvodeep Das, Marketing Head, Kaya Skin Clinic, says, “Newspapers are for immediate impact, whereas magazines help us create education and awareness.”
From a creative point of view too, Nema finds magazines a better bet as they ensure “exceptional clarity and dimension” of the brand’s ‘utility’ products, as “the picture reproduction quality and the paper is far superior to newsprint”.
In spite of the positives, the biggest challenge for magazine publishers is declining readership in every round of the IRS. As per IRS 2011 Q4 results, six of the top 10 magazines have seen a decline in Average Issue Readership (AIR). Vanitha, the leader in the top 10 list, saw a decline of 2.85% in AIR to 25.16 lakh in Q4, as against 25.9 lakh in the previous quarter.
Irrespective of whether magazine publishers agree with IRS figures or not, no one can deny the fact that there has been a substantial decrease in interest in general interest publications. Bagga says, “Lifestyle, women’s and niche magazines such as Cosmo, Harper’s Bazaar, Good Housekeeping, Prevention, Harvard Business Review, Time Magazine and Robb Report are witnessing a consistent increase in acceptance among readers as well as advertisers.”
Many thought, at least until a couple of years back, that Internet, being the quickest medium, would cannibalize the print medium. However, while many newspapers have gone on the Net, giving quick take-aways to readers, it is with the penetration of tablets that magazines have found a suitable mate to reach out to their audience. Indian magazines, however, have been slow to embrace them, but not absent. Gurmeet Singh, CEO, Forbes India, says, “At a very basic level, I can see many Indian magazines on digital stores like Zinio, Magzter, etc. Magazines like India Today are there on Kindle as well as on Apple News stand. A few of them have WAP sites and mobile apps. Websites that attract the largest traffic online should be an area of focus.”
While ‘caution’ is the buzzword for magazine players in the outlook for 2012, they are optimistic about growth. Khosla of Infomedia18 expects “more traction” in the auto segment in 2012 with big plans from BMW, Audi to garner a bigger share of the Indian consumer wallet. “Luxury brands will increase advertising. I also think, gadgets and gizmos like smartphones, iPads, Android devices, etc., will definitely advertise more,” he says.
India: A future destination
The composition of a growing middle class and dominance of a young TG make India an assured market of growth for magazines
Faster growing B2B than B2C
In the magazine business, the business to business space is growing much faster than the business to consumer space
Technology: Challenge and opportunity
The growth in digital platforms is a challenge; but tablets bring a fresh lease of life for the magazine business
Have a different digital content strategy
Print provides analytical content, digital is confined to information. Have different editorial for different media verticals
Go mobile
Very few titles, including the likes of the India Today Group, have anything to talk about on magazines on mobile
Magazines claim undivided attention of the reader and have the potential to allow a reader to live the brand experience
Communities and reader relation
Magazines allow a relevant audience to an advertiser and in turn a targeted communication; subsequently building a strong reader relation
Go niche
The success stories are majorly of special interest magazines that understand and deliver on their brand proposition
Established and credible will grow
Established and vintage brands that continue to be credible and relevant will see growth despite any declining circulation trends
Survival of magazines
Survival of magazines in a 360-degree environment is a challenge, but a right balance of Digital and Print is the key
Feedback: surender@pitchonnet.com
Tags : Spotlight