Skip to: Navigation | Content | Footer

PUBLISHING FUTURES

The Key Industry Dynamics

The Publishing Futures research is showing that publishers are finding it tough going in 2017, but are optimistic for 2018. Jim Bilton looks at what four key industry metrics tell us about the state of play.

Jim Bilton

Posted on: 26 September 2017

 

At the core of this year’s Publishing Futures project is a structured Health Check for media companies. 99 organisations participated in the survey, which has generated a wealth of benchmarking data. This is helping to define “what good looks like” in a modern publishing operation. Yet what does the overall environment in which we are all operating actually look like currently?

The graph (below) picks up on four key industry metrics.

1. Turnover Growth

  • 58% of the participating companies report that their topline turnover is growing. That is well down on the 72% seen in the last Publishing Futures survey in 2015. Yet the industry is much more bullish about next year with the figure flicking back up to 72% again.
  • In terms of the average rate of growth, that shows the same pattern. Turnovers were rising at +5-6% per year, then slowed to +3% this year. The prediction is that 2018 will be back up to +5% again.

The overall picture is that 2017 is turning out to be a tough year, but that hopes are high for a better 2018.

2. Profitability

  • 79% of the participating companies are currently in profit. As with turnover, this is well down on previous years, but is forecast to bounce back to a record-breaking 90% next year.
  • Looking at the actual profit margins of those companies that are in the black, these are averaging at just over 12% now and are predicted to hold steady next year.

Despite all the pressures, the media business is still delivering profit margins that many other industries would kill for. Yet this is the result on ongoing and grinding cost control which is now baked into the culture of most companies.

3. Headcount

  • 40% of companies claim that their headcount is growing. This is well down on previous surveys – of all the key metrics, headcount is the one that has dived fastest in 2017.

With turnover growing faster than headcount, the industry’s productivity figures are increasing, but many people are finding the pressures intense. A common theme running through the survey is that there are simply not enough people resources to get through the “to do” list which continues to grow longer and longer as the delivery deadlines get shorter and shorter.

4. Marketing Budgets

  • The marketing budget metric is holding steady: 48% of companies are stating that their spend on advertising & promotion, customer research, etc is increasing. This figure is around the same as in 2015.

The industry is continuing to invest in marketing, but this spend is being spread more thinly across an increasing range of areas. It is also clear that it is development areas, typically digital, which are drawing money out of more established, legacy activities – the print newsstand being a prime example for many Consumer publishers.

 

So, all the figures underline the fact that 2017 is a year of great stress, with consolidation being a key feature. This is being seen among publishers themselves, but is currently most obvious among suppliers to the industry with the closure of Dovetail, COMAG and WWMD being high profile examples. Yet once the year of the “stress test” has been endured, then the industry is looking more positively to 2018. Whether this is just wishful thinking remains to be seen. Yet there is no doubt that the publishing business is feeling that it is in the process of getting into better shape to face a volatile future.

In forthcoming issues, we will be looking at what “getting into better shape” actually means in practical terms. The Publishing Futures Health Check covers a wide range of areas from the front-end revenue streams to back-end organisational and structural issues. Extending the life of profitable, established areas while trying to develop newer (but typically lower margin) activities is the key balancing act for the foreseeable future.

“Despite all the pressures, the media business is still delivering profit margins that many other industries would kill for.”

About Jim Bilton
(Details last updated: 15 May 2012)

Jim Bilton is the managing director of media consultancy, Wessenden Marketing, and of BrandLab, a specialist research agency which focuses on how and why people consume media. Jim also publishes the newsletter, Wessenden Briefing.

Tel: 01483 421 690

Email: Send a message to this author

Website: www.wessenden.com

comments powered by Disqus

Most read on InPublishing

These are the most read stories on the InPublishing website over the last 14 days, in order from the top.

Articles

My Publishing Life – Adam Sherman

Adam Sherman
Posted on: 16 October 2017

Hyperlocal – making its voice heard

Nick Turner
Posted on: 26 September 2017

Vertically focused

Ciar Byrne
Posted on: 26 September 2017

It was circ wot won it!

James Evelegh
Posted on: 12 October 2017

Off The Page

David Hepworth
Posted on: 26 September 2017

All change at Condé

Meg Carter
Posted on: 26 September 2017

5 minutes with… Hutch Hicken

Hutch Hicken
Posted on: 30 September 2017

Amid New Revenue Push, Video Is The Solution Du Jour

Karlene Lukovitz
Posted on: 26 September 2017

1984 and all that

James Evelegh
Posted on: 19 October 2017

Man vs Robot

Ray Snoddy
Posted on: 26 September 2017

This list is based on data from Google Analytics, and is refreshed every 24 hours. (Last updated: 23/10/2017 08:31)

Find out more about

Featured job

Circulation Executive
Salary: Competitive
William Reed Business Media
Crawley

Featured in InPublishing Jobs

InPub Weekly: Sign-up

Click here to sign up for our free weekly email newsletter:

Sign up now!

Magazine registration

Publishing Partners Guide