Digital Poised to Drive Consumer, B2B Markets, According to PwC Report
The financial information market began to recover in 2010, seeing a 0.8 percent increase. While housing remains weak, spending on marketing information is expected to rise with the development of new marketing tools and growth in consumer spending. Marketing information is expected to expand at a 5.2 percent compound annual rate to $19.1 billion in 2015.
New information technologies are allowing for new revenue-generating products to be developed, such as medical data sold as software packages and predictive analysis enabled by algorithms and data-streaming technologies, as well as lead generation built on behavioral and demographic information and tools that analyze social network activity, the report says.
The report sees "the emergence of a digital content market" and advertising growth propelled by a stronger economy as the primary drivers leading to a rebound in trade magazines beginning in 2011.
Trade magazine print advertising in the U.S. is expected to increase from $7.36 billion in 2010 to $9.4 billion in 2015, a compound annual rate increase of 5 percent (still below the 2006 high of $10.9 billion), while U.S. trade magazine digital advertising will increase from $1.18 billion in 2010 to $2.4 billion in 2015, a compound annual rate increase of 15.7 percent. Overall North American trade magazine advertising (print and digital) will average 6.8 percent growth compounded annually from 2010 to 2015, according to the report.
The U.S. trade magazine print circulation spending market will increase from $1.38 billion in 2010 to $1.4 billion in 2015, a compound annual increase of 0.3 percent, while U.S. trade magazine digital circulation is predicted to go from $3 million in 2010 to $231 million in 2015, a compound annual increase of 138.4 percent.
The report bases its estimates of the growth in trade magazine digital circulation on the expanded use of paywalls (full and partial), the monetization of archived content and the growth of the tablet market.