Advertising Confidence Declines in June

Magazine-media executives are less optimistic as summer doldrums hit.

07/10/2017

min confidence indexIn min’s second iteration of our Magazine Media Advertising Confidence Index, we find that advertising confidence has declined as we start the month of July from the same period last month. Our respondents combined for an average confidence rating of 6.5 on a scale of one to 10, down from 6.8 in early June. A slew of factors in the participants’ individual businesses played a role in this new sentiment, with some more optimistic, but most less.

For example, one CEO says, “The reason for my optimism is that June was one of the strongest months in company history, and was 135 percent higher than June the previous year.

min confidence index month over month“And the reason for caution is that we announced a fairly healthy price increase effective July 1st. We had a number of long-term clients who locked in campaigns under the old pricing. We may have just pulled forward our normal sales. Historically, July is a decent sales month, with August being light,” the executive added. “We’ll see what happens over the next 60 days.”

A second executive, a chief revenue officer, points out that his growth is going to come from digital, primarily. “The reality is that print revenue is limited, whereas “digital” does not truly exist in the same manner—it represents all digitized media—thus, naturally provides more opportunities for brands.”

A third executive noted that he downgraded his confidence. “I think auto sales are slowing down, so that might lead to more budget cuts in the back half otherwise I’d say 10, not eight,” he said. “Our goal is to stabilize declining revenues in print while we secure growth and new revenue through our emerging channels. And not just ad revenue, but also direct-to-consumer revenue.”

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