Karnitschnig Business Magazines Issues

Karnitschnig Business Magazines Issues - Karnitschnig,...

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Karnitschnig, Business Magazines Issues, WSJ, Oct. 2007. http://online.wsj.com/public/article/SB119214635778456669.html “Business Magazines' Issues: Ad Slump, Web, New Rival” By MATTHEW KARNITSCHNIG For many decades, publishers of business magazines such as BusinessWeek, Fortune and Forbes thrived by following a simple formula: Target upscale executives and sell ad space to auto makers, financial-services firms and technology companies. But in recent years, that formula has come undone. The dot-com meltdown in 2000 sent technology advertising into a steep decline. The slump in the auto industry has led to a cutback in car advertising. And then there's the Web, which has weakened the magazines' hold on their readers and advertisers. Complicating matters further, the three incumbents face a new threat from a deep-pocketed competitor: Condé Nast's Portfolio, a glossy general-interest business magazine that debuted in April. McGraw-Hill Publications' BusinessWeek and Time Warner Inc.'s Fortune are responding to these crosswinds with redesigns. BusinessWeek's new version hits newsstands today, and Fortune's will debut in December. With Detroit in a slump and the subprime mortgage crisis taking a toll on the financial sector, the situation may get worse. Total financial advertising pages fell 7.3% in the first half of this year, while technology dropped 12.8%, and autos fell 4.5%, according to the Publishers Information Bureau. Hardest hit were BusinessWeek and Fortune, each of which saw ad pages drop 20% in the second quarter, while Forbes LLC's Forbes was down 1.1%. Forbes's competitors say its tally includes supplements and other pages that the rivals don't count. Adjusting for these factors, they say the performance of the three is roughly equal. Forbes denies this and says the data prove that it is well ahead of the competition in terms of ad pages even without the special sections. "They ought to spend more time making ad calls than slinging
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Karnitschnig Business Magazines Issues - Karnitschnig,...

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