Looking beyond the undisputed free fall in print ad pages in the last half of 2008 (continuing into 2009), the relative health in online publishing, events and data products have helped contain revenue declines at well-integrated b2b media companies to 2.2% in 2008, according to the 2009 Media Financial Survey from American Business Media. Presented yesterday to kick off the ABM annual conference on Amelia Island, Fla., the survey revises the previous poll of b2b media by assessing all pieces of the business model, not just print. “This is the first time we looked across all categories,” says Richard Mead, managing director, The Jordan, Edmiston Group, which sponsored the research. Mead says that when looked at more “holistically,” b2b media is healthier than many presume. “Under the circumstances, it shows a very impressive effort.”
The survey included 20 companies of various sizes, and the results showed online revenues in 2008 leading growth with a 15.1% surge in 2008, with trade shows up 4.3%, data products up 7% and conferences up 9.9%. Magazine revenue was the obvious drag on growth, down 10.2% for the year. Custom publishing was relatively flat.
As contributors to the b2b revenue mix, both online activity and trade shows indexed considerably higher than other factors last year, although data and conferences also saw their profitability rise.
Between 2006 and 2008, the share of b2b media company revenue coming from print has declined from 72.6% to 62.4%, while online contributions have grown from 13.1% of total income to 19.6%. Trade show share in these businesses also rose from 6.6% of revenues to 9.7%.
“The marketing mix is evolving,” says Mead. “Print magazines will continue to play a role, but not as key a role as in the past.” In a survey question asked of the participants about their plans to launch any new print products in 2009, 94.4% said “no.” Mead believes that when seen broadly, b2b companies are more resilient and flexible than many analysts seem to think. “The industry has demonstrated the ability to embrace the change and to work with customers in new and enhanced ways.”
Mead admits that the relatively small sample of 20 was likely skewed to larger firms with integrated models, so these findings may not represent a comprehensive view of the industry. “A pure publishing company is hard to start on a print magazine platform,” he says. “You will have to acquire. I can see a fair amount of consolidation in the next few years.”
The ABM survey drilled further into the revenue contributions of each of the five media components covered as well as executive attitudes toward investment in the coming year. For a more detailed report, see next week’s issue of min’s b2b.
Source: http://www.minonline.com/
The survey included 20 companies of various sizes, and the results showed online revenues in 2008 leading growth with a 15.1% surge in 2008, with trade shows up 4.3%, data products up 7% and conferences up 9.9%. Magazine revenue was the obvious drag on growth, down 10.2% for the year. Custom publishing was relatively flat.
As contributors to the b2b revenue mix, both online activity and trade shows indexed considerably higher than other factors last year, although data and conferences also saw their profitability rise.
Between 2006 and 2008, the share of b2b media company revenue coming from print has declined from 72.6% to 62.4%, while online contributions have grown from 13.1% of total income to 19.6%. Trade show share in these businesses also rose from 6.6% of revenues to 9.7%.
“The marketing mix is evolving,” says Mead. “Print magazines will continue to play a role, but not as key a role as in the past.” In a survey question asked of the participants about their plans to launch any new print products in 2009, 94.4% said “no.” Mead believes that when seen broadly, b2b companies are more resilient and flexible than many analysts seem to think. “The industry has demonstrated the ability to embrace the change and to work with customers in new and enhanced ways.”
Mead admits that the relatively small sample of 20 was likely skewed to larger firms with integrated models, so these findings may not represent a comprehensive view of the industry. “A pure publishing company is hard to start on a print magazine platform,” he says. “You will have to acquire. I can see a fair amount of consolidation in the next few years.”
The ABM survey drilled further into the revenue contributions of each of the five media components covered as well as executive attitudes toward investment in the coming year. For a more detailed report, see next week’s issue of min’s b2b.
Source: http://www.minonline.com/
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