By 2013, advertising in Canadian consumer print magazines will decline by 2.3%, while b-to-b print ads will drop by 5.5%, according to the latest entertainment and media forecasts
from PricewatehouseCoopers (PWC).
The loss in print revenues will be somewhat offset by a 29.6% jump in ad spending on consumer magazine websites and a 22.6% boost for trade magazines online. But when the predicted drop in consumer spending on magazines is factored in (-1.9% for consumer, -1.4% for trade), the overall trend is slightly down: a consumer magazine shrinkage of 1.1% and a trade magazine shrinkage of 2.4%.
Overall industry worth, not including government grants or ancillary products such as trade shows, will be around $1.37 billion in 2013, according to PWC.
Last year, PWC predicted that by 2012, consumer magazines would grow at a 2.7% compound annual rate.
Internet access and Internet advertising are the entertainment/media sectors poised for the biggest growth over the next five years in Canada, according to PWC. By 2013, consumer spending on Internet access will reach $5.59 billion, while Internet advertising will have grown by 8.6% and be worth $2.1 billion.
PWC predicts that overall entertainment and media spending in Canada by both consumers and advertisers will grow by 2.2% over the next five years.
Globally, the consumer magazine industry will continue to suffer into 2010, with PWC predicting a cumulative 19.9% drop in print advertising. There will be some recovery in the following years, PWC predicts, but overall the global industry will contract by 0.9% from $80 billion in 2008 to $77 billion 2013.