Today's btobonline newsletter brought some sobering news to anyone in the business to business world. According to the latest Business Information Network figures released by American Business Media, ad pages declined 33.06% in March 2009 compared with March 2008. Pages are off 29.70% for the first quarter of 09 vs. 08.
The doom continues unabated for business to business publications. The question is what is causing the shift - the move to digital and or the economy. The article points out that digital revenue is only up 10%. For these publishing companies that revenue increase is miniscule. One rep I know well shared with me that selling a digital campaign is equivalent to selling one page of space, "we're trading dollars for nickels." The question is will the nickels eventually add up?
From a comparison consideration in previous economic downturns (01 and 02), pages were down 19.69% in 2001 and 15.00% in 2002 - not nearly as dire as what business to business publishers are facing today. Could it be that the extra 10% decline is because this economic slump is far worse then 01-02.
It is almost universal that most businesses in whatever segment and or sector they serve are off by 20% +. The lucky ones are only down 10 to 15%. Every form of media is being hit hard - from digital to electronic. Notice how many more PSA spots are airing these days! Newspapers and magazines are easy targets for the doom and gloom. Fueled very much in part by the digital community who have a vested interest!
Will business to business print die a slow death? My opinion is that there will always be a place for great print advertising. Much like the death of movies, TV, radio was forecast many times in the past, print advertising will evolve into another niche medium. It looks dark right now but light may be around the corner. It could be in the form of better corporate profits. This is the key to unlocking the communications budget vault. Let's not write that obituary for business to business press just yet!
Print will never die. As you know, the paper industry is all about the survival of print. I have a wonderful piece that our marketing department just developed "Print with Purpose" that documents heavily the value of print as part of any branding, marketing or sales campaign.
I'll send a few to you. And, I would be delighted to present the "Print with Purpose" in more depth if you or anyone on your sales team would be interested!
Great job on the blogs Bill. You definitely have your hand on the pulse of what's happening!
Regards,
Cathy