Online Ad Revenue to Surpass Magazine Ad Dollars in 2006
2006 will mark the first time the Internet grosses more advertising revenue than magazines.
(Source: Advertising Age, April 17, citing a Merrill Lynch report)
Online buyers Spent More Than Ever in 2005
Consumers spent more money on online content in 2005 than ever before, with the average annual spending per customer topping $100 for the first time, according to a study by the Online Publishers Association. The study notes that only 12 percent of the total Web population is currently purchasing online content.
Eight of the 11 categories* that were tracked showed revenue increases over 2004 numbers. Categories with revenue growth: business content/investment, credit help, entertainment/lifestyle, greeting cards, personal growth, games, personals/dating, and research. Categories with revenue declines: community-made directories, general news and sports.
*Note: Report does not track pornographic or gambling sites.Source: Online Publishers Association’s 2005 Online Paid Content U.S. Market Spending Report
magazine ad revenue and pages up in march
n Total magazine rate-card-reported advertising revenue for March increased 5 percent compared to March of last year, closing at $2.1 billion.
n Ad pages totaled 21,826.08, up 0.2 percent from March 2005.
Source: MPA’s Publishers Information Bureau
Paper Prices Dropped
Tracking the six-month trend in paper prices:
n The price of 35 lb. uncoated SC A groundwood dropped from $848/ton in October 2005 to $833/ton in March 2006.
n For #5, 40 lb. coated groundwood, the price declined from $908/ton in October 2005 to $892/ton in March 2006.
Source: Publishing Executive’s monthly online Paper Price Index (www.PubExec.com) by Foex.