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Ad Industry Views on US Magazines Fortunes | October 30 2001 |
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The recent American Magazine Conference has painted a largely gloomy picture of the short-term outlook for US media advertising. Covering the range of printed titles, the speakers were particularly concerned for the health of American magazine publishers. "Our ad dollars are going to be constrained substantially," announced Frederick Hill, VP-marketing and communications at J P Morgan Chase. "We understand what we should be doMRS Conference 2002 Info & Registrationdollars will be constrained till the second quarter." He also predicted a turnaround in fortunes might be possible by the end of next year, 2002. Conference coverage indicates that speakers, such as Jon Mandel, the co-managing director and chief negotiating officer at MediaCom, were less confident about any future upturn in ad revenues. Mandel in particular was reported as claiming that he did not see any possible improvement before 2003. The ad industry, he added, typically lags the overall economy by nine months when conditions are improving and six months when they are in decline. Further pessimism was voiced by David Verklin, chief executive of media buying shop Carat North America, "We are projecting that total ad volumes are going to be down 10% in 2001 and 2002." Equally as downbeat, Peggy Kelly, VP-global ad services at Bristol-Myers Squibb, believes that the US magazine industry is in for a particularly bumpy ride due to its relative inflexibility. She also ventured the view that US advertisers, who are asked to book space in magazines some time in advance, would be less willing to do so in the current climate. Simple printable version of this article. Email this article to a friend.
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