Key Facts about the UK Consumer Magazine Industry

1
Key Facts about the UK Consumer Magazine Industry

• The UK consumer magazine industry is worth 2.8bn
• Over 3,200 consumer magazines are published in
  the UK
• Nearly 9 out of every 10 UK adults read magazines
  every year
• Nearly 1.4 billion consumer magazines are sold in
  the UK each year
• Consumers spend more than 2bn a year on consumer
  magazines
• Advertisers spend nearly 800m per year with
  consumer magazines

2
The UK consumer magazine industry is worth 2.8bn
Value of Magazine Industry, 2007 (m)

• The total value of the UK magazine industry in
  2007 was 5.7bn
• Consumer magazines account for 2.8bn 49
  market share

Customer Magazines
Consumer Magazines
Business Magazines
Source PricewaterhouseCoopers (2008)
3
Over 3,200 consumer magazine titles are published
in the UK
Number of Consumer Magazine Titles, 1980 - 2009

• There are currently 3,243 consumer magazines in
  the UK
• In the last 30 years, the number of consumer
  magazines has increased by 135
• In 1980, there were only 1,383 titles

Source BRAD (Feb 2009)
4
Magazines reach at least 85 of UK adults

• In 2008, 85 of all adults reported reading one
  of the 184 titles listed on the NRS
• 57 of adults almost always read at least one
  of these titles
• On average, AIR adults read NRS titles for 88
  minutes every week

Reach of Magazines, 2008
i.e. the 75 who are part of the Average Issue
Readership of any NRS magazine
Source National Readership Survey, January
December 2008
5
Top magazines by readership
Reach (Average Issue Readership)
Volume of Reading per Issue
Volume of Reading per Year
1
Take A Break
Take A Break
SkyMag
2
Radio Times
Tesco Magazine
National Trust
3
Whats On TV
SkyMag
Asda Magazine
4
OK!
National Geographic
Your MS
5
Hello!
Radio Times
Sainsburys Mag
Chat
Readers Digest
National Trust
6
Closer
Whats On TV
7
Whats On TV
8
Heat
Saga Magazine
Sky Sports
Auto Trader
Tesco Magazine
Take A Break
9
TV Choice
OK!
Boots HB
10
Volume of Reading per Issue Average Issue
Readership x Mean time spent reading Volume of
Reading per Year Volume of reading per issue x
Number of issues
Source NRS, January December 2008
6
Nearly 1.4 billion copies of consumer magazines
are sold in the UK each year
Number of Copies of Consumer Magazines Sold, 1980
- 2008
Copies Sold (m)

• 1.374bn copies of consumer magazines were sold in
  the UK in 2007
• At least a further 0.4bn copies were distributed
  for free or discounted in 2007
• The average person in the UK buys 22 copies a
  year

Year
Source AA/WARC (2008)
7
Top magazines by circulation
Average Net Circulation (UK/ROI)
Actively Purchased (UK/ROI)
SkyMag
7,219,922
1
TV Choice
1,369,088
2
Whats On TV
Sky Sports
1,315,543
4,267,042
Sky Movies
1,018,704
3,511,747
3
Radio Times
Asda Magazine
932,651
2,925,656
4
Take A Break
Tesco Magazine
2,016,878
5
Saga Magazine
647,064
Readers Digest
National Trust
550,040
1,737,759
6
Closer
Sainsburys Fresh Ideas
529,671
1,492,957
7
Skymag HD Special
498,776
1,400,000
8
Glamour
TV Choice
1,369,088
OK!
477,641
9
Chat
Whats On TV
454,818
1,315,543
10
Source ABC, July-December 2008
8
Consumers spend more than 2bn a year on consumer
magazines
Purchaser Expenditure of Consumer Magazines
(Constant Prices, 2000, m), 1980 - 2007

• Consumers spend 2.1bn on magazines at current
  prices
• This is equivalent to every person in the UK
  spending 36 a year on magazines
• Expenditure on consumer magazines has grown in
  real terms by 88 since 1990 (see graph)

2,500
2,500
2,500
2,000
2,000
2,000
1,500
1,500
1,500
Purchaser Expenditure (m), constant prices, 2000
1,000
1,000
1,000
500
500
500
0
0
0
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
Source AA/WARC (2008)
Year
9
Advertisers spent almost 750m with consumer
magazines in 2008
Advertising Expenditure (Current Prices) by Medium
18,000

• In 2008, advertisers spent 745m with consumer
  magazines
• Advertising expenditure for all media except the
  internet declined year-on-year in 2008

17,081
16,333
16,423
16,207
791
15,809
745
16,000
Consumer Magazines
812
968
827
14,810
819
839
Business Magazines
1,016
976
1,064
1,082
784
938
Outdoor
933
14,000
897
1,048
848
2,171
Direct Mail
2,040
786
2,322
2,371
170
12,000
168
2,469
Cinema
155
158
2,467
2,747
2,313
Regional Newspapers
160
Advertising Expenditure (m), current prices
10,000
2,782
149
2,994
3,132
National Newspapers
1,805
1,933
2,962
8,000
454
1,913
Radio
497
1,912
1,974
480
6,000
521
1,902
3,819
TV
545
4,016
526
4,000
3,905
4,097
3,955
3,722
2,000
3,300
Internet
2,813
2,016
1,367
825
465
0
Source AA/WARC (2008)
2003
2004
2005
2007
2008
2006
10
The growth of internet advertising has affected
share for all other media
Share of Advertising Expenditure (Constant
Prices, 2000) by Medium
100

• The growth of internet advertising has led to a
  decline in share of expenditure for all other
  media, except outdoor

4.6
4.5
5.3
5.2
5.1
5.0
Consumer Magazines
5.1
Business Magazines
5.7
6.2
6.6
7.1
6.8
90
5.7
5.7
Outdoor
5.7
5.4
5.5
5.3
80
Direct Mail
12.4
12.7
14.2
14.6
15.6
16.7
1.0
Cinema
1.0
70
0.9
1.0
1.0
1.0
14.1
Regional Newspapers
16.1
60
17.0
18.5
19.8
20.0
11.0
National Newspapers
50
11.3
11.7
2.8
Radio
11.8
2.9
12.5
40
12.8
2.9
3.2
23.2
3.4
Television
3.5
30
23.5
23.9
25.3
20
25.0
25.1
20.1
10
Internet
16.5
12.3
8.4
5.2
3.1
0
2008
2005
2006
2007
2003
2004
Source AA/WARC (2008)
Estimates for Q3 Q4 2008
11
Almost 75 of consumer magazine revenue is from
sales
Sources of Revenue for Consumer Magazines at
Current Prices

• In 2007, consumer expenditure accounted for 73.4
  of total revenue for consumer magazines

2,761m
2,850m
2,897m
2,973m
2,736m
2,984m
100
90
26.6
27.7
28.0
28.7
28.4
28.7
Advertising Revenue
80
70
60
50
40
73.4
71.6
72.3
72.0
71.3
71.3
30
Circulation Revenue
20
10
0
2002
2003
2004
2005
2006
2007
Source AA/WARC (2008)