Features and tRends

(December 2008)

Is There Practicality in Print Advertising?

In 2009, The Christian Science Monitor will become a print weekly and a Web-based daily. PC World will be all-digital. Gannett saw a 14 percent drop in advertising sales in the second quarter of 2008. Considering these announcements, it is again time to ask if print advertising is losing its effectiveness. The answer: It all depends on where you’re looking.

In the last five years, some print categories have grown, according to The National Directory of Magazines. This is the second consecutive year in which the number of regional magazines outnumbers all other groups with 1,126 titles. Trish Hagood, president of Oxbridge Communications, publisher of The National Directory of Magazines, attributes this growth to local advertisers as well as readers’ interest in local attractions. At 241, the number of home magazines nearly tripled between 2004 and 2008. Other genres, including real estate, health and fitness, and lifestyle, also added titles.

Following the growth experienced in 2007, TNS Media Intelligence predicted a 3.6 percent increase in ad spending for consumer and Sunday magazines in 2008. These publications often provide advertisers with narrowly segmented audiences at a lower price than national, general-interest magazines.

Not all outlooks are equally optimistic. The number of news and management magazines fell 39 and 32 percent, respectively, during the last five years. TNS also forecasts drops in business-to-business magazine and newspaper advertising through 2008. Explanations for these numbers may be seen in Texterity, Inc.’s survey of 33,897 digital magazine readers. 55 percent of respondents are in professional or managerial positions, and nearly 20 percent have been in their industry for 30 years or more. The high percentage of experienced, upper-level management choosing digital editions leaves a void in business and management print magazines.

A third consideration in analyzing print advertising’s usefulness is the audience. Online ad representative, blogger and author Josh Gordon sees digital as an extension, not a replacement for print. He suggests that if a print audience is stable, a company’s print advertising levels should follow, while digital ads simultaneously increase. This ensures total market coverage and advertisers reach distinct yet complementary groups of consumers.

The Rise of the Banner Ad
When print advertising loses its effectiveness or needs to be enhanced, online ad content can fill the gaps. More specifically, banner advertisements have become an increasingly important marketing communication tool since their debut on HotWired in 1994. Named for their 468x60-pixel dimensions, the name is now synonymous with Internet display ads, which vary in size and shape.

Banner ads are exhibiting steady growth and, along with tools such as “search” and “rich media”, are contributing to record-high Internet advertising revenues. Price drops have lead to increased use as advertisers look to cut costs, and niche Web sites provide opportunities for even the smallest companies. Click-through rates may seem low at first glance, yet studies show that each exposure raises consumers’ familiarity with and positive awareness of the brand.

Despite an overall drop in U.S. advertising expenditures, Internet display ad sales increased by 8 percent in the first half of 2008, according to TNS. This trend may likely continue as tightening budgets demand easy-to-measure ROI… an important characteristic of banner ads.

Overall print advertising is still a viable part of the integrated marketing mix for some companies. Those that should continue advertising in print have audiences in regional and subject-specific magazines in areas demonstrating growth. Because they target a specific audience, these publications offer value and effectiveness to the advertiser. Conversely, news and business-related content is going digital at faster rates and print advertising is becoming less effective in those arenas.

For more information, contact Steve Kleber at 770.518.1000 or by email at sk@kleberandassociates.com.

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