The Hindu Business Line : Newspapers outdo magazines in advertising revenues

MAGAZINES are not raking in as much ad revenues as newspapers, but they are also less dependent on a few specific sectors. And, while lifestyle products such as readymade apparel and watches have emerged as some of the biggest spenders in magazines, they still spend only a small part of their overall print ad budget on magazines, according to a report by TAM-AdEx.

The top five advertising categories in newspapers last year were two-wheelers, corporate/brand image advertising, cars and jeeps, properties and real estate, and cellular phone services. The top spenders in magazines were readymade apparel, corporate/brand image advertising, cars and jeeps, watches, and insurance. Watches are a big category in lifestyle and general interest magazines, while insurance ads pop up in general interest, business and specialist magazines with a male skew, according to TAM-AdEx.

"While magazines and newspapers are both a part of the same category, print, the forces that lead them and shape them are quite different," said Mr Atul Phadnis, Director - S Group, TAM Media Research, which monitors over 600 media brands.

Overall print ad revenues are estimated at Rs 4,400 crore; magazines currently have a 12.5 per cent share, while newspapers make up for the rest, according to TAM-AdEx. Last year, the average monthly print adspend of two-wheelers was over Rs 20 crore, of which 96 per cent was in newspapers, and just four per cent in magazines.

The average monthly print adspend of real estate/property was about Rs 15 crore, of which 98 per cent was in newspapers.

Cell phone service providers spent 98 per cent of their monthly print ad budget of Rs 11 crore in newspapers. In the case of corporate/brand image advertising, 88 per cent of adspend was in newspapers, while cars and jeeps spent 89 per cent of their print ad budget in newspapers, according to TAM-AdEx.

"Interestingly, even the largest product category in magazines — readymade garments — spent only 26 per cent of its press budget on magazines," Mr Phadnis said. "Newspapers simply have a larger influence on overall print ad revenues."

Also, while print ad sizes have declined across the board, magazine ad sizes have registered the greatest decline — a whopping 30 per cent over the past eight years, as compared with a 21 per cent decline in newspaper ad sizes.

But, newspapers may be more vulnerable to declines in specific sectors or industries: the top 10 category spenders in newspapers accounted for 35 per cent of overall newspaper ad revenues, while the top 10 categories in magazines only accounted for 29 per cent of overall ad revenues.

"While the specialist magazines are dependent on specific categories, magazines overall are much more broad-based, and less dependent on a few top industries or sectors," Mr Phadnis said.

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