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Growth in Non Print Products Offsets B2B Revenue Decline

10 Jun 2009

Revenue growth in online, live events and data products helped to offset declines in B2B magazine revenue in 2008, according to American Business Media's 2009 Media Financial Survey, as reported in Publishing Executive.


Among the companies participating in the survey, B2B revenue dropped 2.2 per cent in 2008 as opposed to 2007. Profitability declined even further: B2B media company contribution (revenue less operating expenses) dropped 7.8 per cent. The 2008 revenue and profitability figures however, remain above 2006 figures due to large gains in 2007.


Despite an overall decline in 2008 there were several key revenue categories that showed gains such as online revenue which showed the strongest growth, up 15.1 per cent in 2008 and rising at a compound annual growth rate of 26.8 per cent from 2006 to 2008. Online display and search advertising, which accounts for more than 50 per cent of total online revenue, gained 12.4 per cent in 2008 and grew at a compound annual growth rate of 30.7 per cent since 2006.


Trade Shows, the third largest revenue stream for B2B publishers, behind magazines and online grew 4.3 per cent in 2008, among those companies participating in the study and at a compound annual growth rate of 25.4 per cent from 2006 to 2008. Revenue from data and conferences also increased 7.0 per cent and 9.9 per cent respectively. Custom publishing revenue has remained relatively flat.


Magazines were the weakest performers, showing an 8.4 per cent decrease and a 3.9 per cent decline on a compound annual growth rate basis over the three year period.


As for profit performance, all major B2B media company revenue categories, except for magazines, for participating publishers increased on a contribution basis in 2008 and across the three year period of 2006 to 2008. Key magazine operating costs such as ad sales, editorial and production have not declined in line with revenue, and therefore, have negatively affected magazine contribution, which dropped 26.8 per cent in 2008 as opposed to 2007 and at a compound annual growth rate of 16.5 per cent from 2006 to 2008.



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