The Revenue Mix of B2B Media Is Changing, Events & Data Lead the Way
On Monday Connectiv, an association for B2B media companies and a part of SIIA, released its annual Business Information Survey. The survey asked respondents to share which products drive the greatest share of revenue for their businesses today and how that revenue mix might change by 2020. The survey reveals that increasingly B2B publishers will rely on digital, data, and events to drive revenue at their companies. Connectiv interviewed over a third of its member CEOs. CEO respondents hailed from companies for combined annual revenue of $20 billion, out of the $400 billion global B2B media market. Following are the 3 top takeaways from the survey:
1. Events and information services will contribute the largest share of revenue by 2020. Survey respondents estimate that 24% of their total revenue will come from events/programs in 2020. A close second is paid content/data/information products, which respondents predict will contribute 23% of total revenue.
Interestingly, in a 2015 interview with Publishing Executive, Penton SVP of marketing Kate Spellman seemed to foreshadow Connectiv’s survey results in her explanation of Penton’s rebranding. She explained that Penton rebranded itself as an information services company to signal the shift in its revenue mix. Event revenue captured the largest share, exceeding $360 million in 2013, and marketing services was close behind, having grown 20% year over year. Both products drove more revenue than Penton’s print assets, said Spellman.
2. Publishers plan to increase investment in data analytics. 50% of companies surveyed shared that they intend to increase the number of hires in the area of data analytics. That response is 7% higher than any other staffing response in the survey. Programming and digital operations were also among the top talent areas of anticipated growth.
ALM is one of the B2B publishers leading the way in data investments. ALM CEO Bill Carter said that connecting the company’s disparate data assets and creating products around that data is a key focus for 2016. He said that more powerful data analytics gives ALM “an opportunity to become the Gartner Group for the legal industry to produce these types of reports, link this data, and provide those insights.”
3. Print revenue, predictably, will decline. When asked how their revenue mix would differ between today and 2020, respondents indicated print’s revenue share would shrink from 28% to 18%. Although print is currently the top revenue source for respondents’ companies, it will fall behind events, information services and data products, and digital content.
Do these numbers align with the revenue mix at your B2B publishing company? Where are you seeing the greatest revenue growth?