Study: B-to-B Media in 3-Year Decline

NEW YORK The slumping economy and ongoing reader and advertiser shift to online sources continue to impact business-to-business media, which held their revenue flat from 2005 to 2007, according to American Business Media’s “ABM Financial Trend Report, Three-Year Analysis, 2005-2007.”
All three measured revenue streams showed declines over the three-year period. The report, prepared by the Jordan, Edmiston Group, was based on data provided by 18 b-to-b media companies representing 118 publications.

The biggest of the three revenue streams, advertising, declined at a compound annual rate of 0.5 percent to $4.1 million for the average publication.
Circ revenue declined 2.2 percent to $480,000 on the same basis as the expansion of online information eroded readers’ need for paid subscriptions to print magazines. Meanwhile, high-margin ancillary revenue, from sources like licenses, collateral products and list rentals, slipped 5.8 percent to $361,000.
On the cost side, expenses rose at a 2 percent compound annual growth rate over the period, with lower ancillary and production expenses offset by higher postal and editorial costs.