Economy creates vicious cycle for magazine industry

Ashley Carroll
Editor: Lauren Costley

Sifting through any number of magazines, readers trudge through pages upon pages of advertisements before even reaching an article. Although many find this task annoying, it is necessary for the survival of America’s magazine industry.

Without these ads, magazines would cease to exist.

With the economy at an all time low and companies cutting back on spending, the magazine world is finding it hard to thrive. It is not only the print industry that is suffering, but the business world as well. The closures of major magazines such as Blender and Vibe have caused consumers to question the longevity of the magazine industry.

“I feel like every time I hear about magazines or newspapers in the news it’s about one closing. When I hear this, I can’t help but think about how much longer magazines are going to be around,” said Emily Jackson, 19, a psychology major from Atlanta.

The public may believe the decline of the magazine industry is due to consumers and their readership. According to the Magazine Publishers of America, this is not the case. Circulation was down only by 0.4 percent in 2008 from the previous year.

The closing of magazines is “more closely aligned to the economy and advertiser demand than consumer demand,” said an article, “Misperceptions about Magazine Closings”, on MPA’s Web site.

The relation of the economy and the print industry are closely related. With consumers decreasing purchases, businesses must cut back spending as well. In turn, advertisements are axed causing magazines to lose profit and inevitably shut down. Even though the number of magazines closing has increased, the number of magazines being published has also increased. The total number of magazines being published rose by at least 1,000 from the previous year.

According to the MPA’s 2009 Handbook, more than four out of five adults in the United States read magazines. Although many magazines are closing, it is not due to the lack of readership, but due to the business side of the industry.

The total number of magazines is on the rise; the number of advertisements being bought has declined. A report released by the Publishers Information Bureau states the total revenue for advertisement spending in the first quarter of 2009, which is January to March, was down 20.2 percent from the previous year. With businesses and companies having to cut expenses, it would seem logical to cut advertisements first rather than lay off employees.

“If I were a business owner I would definitely try to cut my expenses else where, such as advertising and unnecessary expenses rather than fire my employees,” said Jeremy Paul, 21, from Columbia, Tenn., “there are other ways to save money.”

Small business owners are definitely crunching numbers to make ends meet. Advertisements are a necessary expense for owners, but some businesses are cutting back. Jen Edwards, owner of a small gift shop business in Buford, Ga., understands the cycle of the economy.

“I’ve noticed a significant decrease in customers,” she said. “I’ve had to cut back on everything to make up for it. Buying less stock for the store, advertising, and even freezing bonuses and pay increases for my employees. I don’t want to do it, but it’s necessary.”

Since businesses are tightening their budgets, in turn magazines are feeling the pinch of the economic situation.

Lisa Wagner, 24, a previous summer intern for At Home Tennessee Magazine from Alpharetta, Ga., noticed firsthand the hesitance from business owners to shell out money for ads.

“Businesses were very reluctant to pay for advertisements in the magazine,” she said. “To have a full page ad would cost anywhere from $ 2,800 to $ 3,400 for an ad on the cover.”

To pay such a price for small business owners is hard and in turn magazines suffer continuing the cycle.