Group M warns newspapers and magazines under threat

LONDON - Group M has lowered its forecasts for newspapers and magazines, warning that falling advertising revenues threaten the existence of weaker titles.

Newspapers... under threat
Newspapers... under threat

The newspaper industry will see ad revenue fall by 26 per cent year on year in 2009, the WPP-owned media buying operation predicts, a figure revised down from its March forecast of a 20 per cent drop.

Group M is expecting that national newspapers' ad revenue will be down 18.6 per cent year on year for 2009 and the regional newspaper industry is expected to fall 32 per cent.

The consumer magazine ad market will be down 20 per cent year on year for 2009, a downward revision from 16 per cent in March and 9 per cent in December.

Group M has retained its March prediction for the UK TV market of a 14 per cent drop across 2009, but voiced concern over broadcasters such as Five, which has suffered steep ad revenue declines.

Big players in the national newspaper market such as News International and Associated Newspapers will put pressure on weaker players, Group M has predicted.

The report said: "Weaker titles have greater need of cash today than yield tomorrow, so these are the ones making the greatest concessions. Weaker titles are less able to deal with other adversity like paper prices (up about a quarter since sterling's slide), amortising plant investment, and to finance digital diversity.

"The strong therefore get stronger. In national newspapers, this means News International and Associated [Newspapers]. Both have circled their wagons by consolidating their sales forces to negotiate harder."

Become a member of Campaign from just £46 a quarter

Get the very latest news and insight from Campaign with unrestricted access to ,plus get exclusive discounts to Campaign events

Become a member

Looking for a new job?

Get the latest creative jobs in advertising, media, marketing and digital delivered directly to your inbox each day.

Create an Alert Now

Partner content


1 Stop and stare at what these nine brands did for the eclipse

You don't have to shield your eyes from social media during an eclipse - brands from DoubleTree by Hilton to Pizza Hut have found creative ways to capitalise on the total solar eclipse.


1 Job description: Digital marketing executive

Digital marketing executives oversee the online marketing strategy for their organisation. They plan and execute digital (including email) marketing campaigns and design, maintain and supply content for the organisation's website(s).