Magazine economics

F1V3 35 Desktop Publishing for Magazine Production

Magazines: Economics

Paul Riddell / Dec 2007

Based on an article ÂŠ2007 CyberCollege InternetCampus

D4SV 04 Electronic Publishing for Magazine Production

Magazines - Economics Income A typical magazine generates around half of it’s income through advertising. The next major source is subscriptions, followed by news stand sales (fig.1). See Appendix 1 for typical advertising rates. Since most magazines rely on advertising so heavily, advertisers can have a degree of control over the editorial content of the magazine, to the extent that editors may avoid controversial subjects that could potentially lose advertisement sales. There are a number of examples of the control advertisers wield on the following webpage: http://www.internetcampus.com/frtv/mag3.htm These examples are from the American market.

Expenditure Advertising A typical magazine’s55% costs are such that the profit margin can be as little Subscriptions 30% 15% asNews 2%stand of the total income. sales

Paper, manufacturing, distribution and circulation costs account for the main bulk of expenses, with Editorial and administration (salaries, etc.) accounting for a much smaller portion. Marketing the magazine through promotions and advertising, and miscellaneous expenses makes up the rest of the total. Circulation

28%

Manufacturing/ Distribution Editorial Administration Marketing Profit

34%

TheMiscellaneous diagram below illustrates the total expenditure breakdown (fig.2). 1% 10%

10% Fig.1 Income

Fig.2 Expenditure

15% 2%

Profit

News stand sales Marketing

Circulation Miscellaneous

Administration Subscriptions Editorial

Advertising

Manufacturing/ Distribution

P&P | Magazine economics.indd v1 | Paul Riddell | Dec 2007

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D4SV 04 Electronic Publishing for Magazine Production

Activities • Read the article on the following webpage: http://www.internetcampus.com/frtv/mag3.htm • Locate the advertising rate cards for at least two magazines. Print these out and they can form an appendix to your assessment for Learning Outcome 1. You may choose any magazines you wish. Compare the rates with those listed in Appendix 1. Note the rates for different advertising positions within the magazine. The back page is generally the most expensive position, followed by the inside front cover. If the magazine has a classified section, then this will usually be the cheapest position to advertise in.

P&P | Magazine economics.indd v1 | Paul Riddell | Dec 2007

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D4SV 04 Electronic Publishing for Magazine Production

Appendix 1: Advertising rates Here are three examples of the rates magazines charge for advertising space in their publications. Note the costs depend on the position within the magazine.

Amnesty International Magazine Circulation: 200,000 Published six times a year: January, March, May, July, September, November. Advertising rates effective: September 2007 Run of Paper (RoP) Display

Cost

Inside Front Cover.............................................£3,750 Inside Back Cover.............................................£3,200 Outside Back Cover..........................................£4,000 Double Page Spread.........................................£7,000 Full Page...........................................................£3,500 Half Page...........................................................£2,500 Quarter Page.....................................................£1,350 Classified Advertising 1/32......................................................................£175 1/16......................................................................£350 1/8........................................................................£700

P&P | Magazine economics.indd v1 | Paul Riddell | Dec 2007

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D4SV 04 Electronic Publishing for Magazine Production

Prospect Magazine Advertising rates effective 2007w DISPLAY Full page . .........................................................£2,600 Cover inside front .............................................£3,200 Cover outside back . .........................................£3,600 Cover inside back .............................................£2,900 First right-hand page ........................................£2,900 Inside front double page spread .......................£5,400 Double page spread .........................................£4,300 Half page ..........................................................£1,500 Third page ........................................................£1,100 Quarter page .......................................................£800 Eighth page .........................................................£450 Agency discount 10%; Guaranteed position 10% CLASSIFIED RATES 6cm x 1 column .....................................................£60 6cm x 2 columns .................................................£120 12.5cm x 1 col .....................................................£120 12.5cm x 2 col .....................................................£240 EXECUTIVE APPOINTMENTS AND COURSES Half page .............................................................£600 Quarter page .......................................................£350 Series discounts: 3 Months: 10%, 6 Months: 15%, 12 Months: 25%

P&P | Magazine economics.indd v1 | Paul Riddell | Dec 2007

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D4SV 04 Electronic Publishing for Magazine Production

Wanderlust Magazine Advertising rates effective 1/1/2007 All prices are in UK Sterling; VAT will be added at applicable rate. Series discounts are available as listed below (approx 15% for a four-series, 30% for an eight-series). All adverts are full colour, except entries in the Specialists’ Directory, which may be either colour or mono.

SPECIAL POSITIONS

Single entry

4-series

8-series

Inside front, DPS

£5,560

£4,700

£3,910

Inside front, full page

£3,130

£2,650

£2,350

Inside back cover

£3,130

£2,650

£2,350

Outside back cover

£3,650

£3,100

£2,550

Single entry

4-series

8-series

DPS

£4,710

£4,010

£3,535

Full page

£2,860

£2,430

£2,140

Half page

£1,630

£1,380

£1,220

£980

£835

£695

Single entry

4-series

8-series

Eighth page colour

£555

£475

£410

Eighth page mono

£475

£400

£315

AGAINST EDITORIAL

Quarter page

SPECIALISTS’ DIRECTORY

P&P | Magazine economics.indd v1 | Paul Riddell | Dec 2007

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