PPB June 2018

Patrick Quinn is president and CMO and Leo Kivijarv, PhD, is EVP and research director of PQ Media. The firm, based in Stamford, Connecticut, is a leading provider of global media econometrics and a pioneer in emerging media research. Its industry- leading predictive econometrics system serves executives charged with advancing strategic initiatives in the rapidly changing media, entertainment and communications industries. www.pqmedia.com 2017 U.S. Advertising and Marketing Growth | FEATURE Magazine Advertising Despite efforts by the magazine industry to promote its digital brand extensions, overall magazine advertising declined 7.9 percent in 2017 to $13.52 billion. Business-to-business magazines didn’t drop as deeply as consumer magazines, as B2B publishers offered up new services such as sponsored database listings on their digital sites, and construction magazines listing electricians, masons and others in local markets. Consumer magazines continued to exhibit double-digit declines in single- copy sales, driven down primarily by general-interest titles and the shuttering of retail outlets that carried their magazines. Out-of-Home Advertising Brands find out-of-home advertising attractive for several reasons, including its aversion to ad-skipping technology, which helped drive up revenues 5.1 percent in 2017 to $9.97 billion. Digital out-of-home (DOOH) media is fueling overall growth, particularly digital billboards in transit locations and place-based video networks in doctors' offices. DOOH ad buyers have moved to make media buying easier by implementing programmatic buying technology in recent years, making this media silo among the most proactive in developing ad modules for smart cities being developed nationwide, such as the conversion of old phone booths into ad-supported charging stations and wi-fi locations in New York City. Entertainment Media Advertising While entertainment media recorded the fastest growth of the 13 media silos tracked here, rising 24.5 percent to $7.03 billion in 2017, this growth rate represents a deceleration from prior years due to a slower single- digit increase in console videogame advertising, the largest channel within this category. Fewer new videogame titles were released last year compared with 2016 for PlayStation and Xbox, while many Nintendo Switch titles were aimed at younger audiences that brands often avoid targeting as a result of consumer pressures. Gains in this segment were driven by mobile game ads and recorded music subscription services such as Spotify. Local Directory Advertising For many years, local directory advertising growth plunged at double- digit rates as use of print phone books declined significantly, forcingmany directories to shutter. However, online directory advertising has grown larger than print directories, so the continued print decline didn’t impact overall revenues as substantially, resulting in a 1.6 percent overall decline to $5.90 billion in 2017. Note: PQ Media is the source of all 2017 size and growth data cited in this article, except PPAI data used for promotional products. | JUNE 2018 | 69