2011_B-To-B CEO Survey - Publishers

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30 Folio: MAY 2011 | foliomag.com

FOLIO: B-TO-BCEO SURVEY Will this year be a return to growth?

by Matt Kinsman

2011

From 2008 through 2010,

many b-to-b publishers

were holding on by their

ngertips. While the same could be

said for a disconcerting number of

publishers in 2011, many organiza-

tions are anticipating growth and

actually investing in areas that war-

rant it for the rst time in years.

Print remains the largest single

revenue stream for most b-to-b

publishers but continues to decline.

In 2010, publishers generating more

than $5 million in annual revenue

saw an average of 48 percent of

total revenue coming from print,

compared to 57 percent for smaller

publishers [Chart 1, page 30].

However, e-media was the fast-

est growing revenue stream last

year (cited by 68 percent of largerpublishers and 52 percent of smaller

publishers). While the event indus-

try was hammered almost as hard

as print over the last few years (and

event M&A dwindled to almost

nothing in the media industry aside

from UBM’s acquisition of Canon

Communications for $287 million),

larger publishers said that was their

second-fastest growing revenue

stream [Chart 2, page 30]. Most

smaller publishers—many of which

CHART 1: Approximately how much of your organization’s revenuedo you estimate came from each of these sources in 2010?

print advertising

e-media

events

paid subscriptions

custom publishing

data/market

information salesother

48%

19%

13%

6%6%

4%

5%

Company Revenue:

$5 million+

57%

13%

8%

7%

2%7%

6%

Company Revenue:

<$5 million

0 10 20 30 40 50 60 70 80 90

CHART 2: What were the fastest growing parts of yourorganization’s business in 2010?

52%

19%

21%

16%

33%

4%

3%

12%

68%

20%

10%

5%

7%

8%

online/e-media

events

print advertising

custom publishingpaid subscriptions

data/marketinformation sales

other

online/e-media

events

print advertising



other

Company Revenue

<$5 million

$5 million+



31foliomag.com | MAY 2011 Folio:

don’t have the resources or the audi-

ence to build large shows, said print

was their second-fastest growing

revenue stream last year.

In 2011, 87 percent of larger b-to-b

publishers and 78 percent of smaller

b-to-b publishers say they expect an

increase in overall revenue [Chart 3,

page 31]. The majority of both larger

and smaller publishers (51 percent

and 30 percent respectively) say they

expect a double-digit increase be-

tween 10 percent and 19 percent. No

larger publishers and just 1 percent

of smaller publishers say they expect

overall revenue to decrease this year.

Revenue Ratios

Print will account for 46 percent of

revenue for larger publishers and

54 percent of revenue for smaller

0 10 20 30 40 50 60 70 80 90

CHART 4: Approximately how much of your organization’s revenuedo you estimate will come from each of these sources in 2011?

54%

14%

6%

9%

8%

2%

7%

46%

22%

15%

5%

6%

4%

2%

print advertising

e-media

events



other

print advertising

e-media

events

custom publishing

paid subscriptions


other

Company Revenue

<$5 million

$5 million+

CHART 3: Compared to 2010, how do you expect yourorganization’s revenue to change in 2011?

0 20 40 60 80 100

INCREASE

by 30% or moreby 20% - 29%by 10% - 19%

by 5% - 9%by less than 5%

STAY ABOUT THE SAMEDECREASE

by less than 5%by 5% - 9%

by 10% or more

INCREASEby 30% or more

by 20% - 29%by 10% - 19%

by 5% - 9%by less than 5%

STAY ABOUT THE SAMEDECREASE

by less than 5%by 5% - 9%

by 10% or more

Company Revenue

<$5 million

$5 million+

78%

87%

51%

11%

19%5%

12%

0%0%0%

0%

1%

15%12%

30%15%

6%

1%

1%

0%0%

19%

17%9%

17%8%




publishers this year, while e-media

will account for 22 percent for

larger publishers and 14 percent for

smaller publishers.

When it comes to print, 60 per-

cent of larger publishers say they

expect increased revenue from new

advertisers (versus 57 percent who

anticipate more dollars from exist-

ing advertisers), while 62 percent of

smaller publishers say they expect

more dollars from new print adver-

tisers and 46 percent expect more

dollars from existing advertisers.

Expectations for custom pub-

lishing and marketing services

have jumped signicantly. Forty-

one percent of larger publishers

expect more revenue from custom

this year, compared to 25 percentof smaller publishers [Chart 5,

page 32].

ProftabiitProts are a different story. While

28 percent of larger publishers say

they had a prot margin between 15

percent and 19 percent in 2010 (and

zero said they weren’t protable),

57 percent of smaller publishers

said their prot margin was be-

tween zero and 9 percent [Chart 6,

CHART 5: From which sources do you anticipate increasedrevenue for your organization in 2011?

0 10 20 30 40 50 60 70 80 90

66%

62%

46%

27%

60%

41%

28%

0%

57%

88%

61%

25%

25%

12%

6%

16%

online media

new print advertisers

existing print advertisers

events

custom publishingreaders (subscriptions,

content sales, etc.)

data/market information sales

other

online media

new print advertisers

existing print advertisers

events

custom publishingreaders (subscriptions,

content sales, etc.)

data/market information sales

other

Company Revenue<$5 million

$5 million+

0 5 10 15 20 25 30

CHART 6: What was your organization’s overall profitability in 2010?

4%

17%

28%

16%

17%

15%

0%

6%

9%

7%

17%

19%

19%

19%

30% or more

20% - 29%

15% - 19%

10% - 14%

5% - 9%

less than 5%

not profitable

30% or more

20% - 29%

15% - 19%

10% - 14%

5% - 9%

less than 5%

not profitable

Company Revenue

<$5 million

$5 million+

0 5 10 15 20 25

CHART 7: How profitable were each of these areasof your organization in 2010?

12.8%

22.1%

21.8%

15.5%

13.5%

13.5%

14.1%

10.5%

events

online/e-media

data/marketinfo sales

print

events

online/e-media

data/marketinfo sales

print


$5 million+




page 32]. Events and e-media were

the most protable areas for larger

publishers, while data and informa-

tion sales was the most protable

area for smaller publishers [Chart 7,

page 32]. Print was the least prot-

able area for both large and small b-to-b publishers (13.5 percent and

10.5 percent, respectively).

Operatin Expenses anTecnoo InvestmentTech spending on e-media in-

creased for both large and small

b-to-b publishers and will again

in 2011, according to respondents

(larger publishers expect operat-

ing expenses to jump 6 percent in

e-media, while smaller publishersexpect a 5 percent increase).

Larger publishers will see the

lowest rise in operating expenses

in circulation (followed by edito-

rial), while smaller publishers will

see the lowest increase in spending

against distribution and production

(2.9 percent for each).

Seven percent of larger publish-

ers invested $1 million or more in

new technology last year (while the

majority say they spent between

$100,000 and $249,999. The majority

of smaller publishers (39 percent)

CHART 8: Compared to 2009, about how much did your organization’soperating expenses increase in each of these areas in 2010?

0

1

2

3

4

5

6

4.8%

5.6%

3.5%

2.4%2.6%

1.7%

4%

3.4% 3.4%

2.5%

2.9%

e - m e d i a

s a l e s

d i s t r i b u t i o n

p r o d u c t i o n

e d i t o r i a l

c i r c u l a t i o n

e - m e d i a

s a l e s


p r o d u c t i o n

e d i t o r i a l


Company Revenue

<$5 million

$5 million+

2%

CHART 9: Compared to 2010, about how much do you anticipate yourorganization’s operating expenses will increase in each of these areas in 2011?

0

1

2

3

4

5

6

l

l

5%

6%

4.4%

3.8%

3.2%

2.8%

2.5%

5.6%

3.6% 3.6%

2.9% 2.9%

e - m e d i a

s a l e s

e d i t o r i a l



p r o d u c t i o n

e - m e d i a

s a l e s


p r o d u c t i o n

e d i t o r i a l


Company Revenue

<$5 million

$5 million+

0 5 10 15 20 25 30 35 40

CHART 10: How much did your organization invest in new technology in 2010?

0%

0%

0%

1%

1%

7%

6%

22%

39%

23%

7%

3%

11%

23%

11%

15%

13%

9%

4%

5%

$1M or more$500,000 - $999,999$250,000 - $499,999$100,000 - $249,999

$75,000 - $99,000

$50,000 - $74,999$25,000 - $49,999$10,000 - $24,999

less than $10,000did not invest in 2010

$1M or more$500,000 - $999,999$250,000 - $499,999$100,000 - $249,999

$75,000 - $99,000$50,000 - $74,999$25,000 - $49,999$10,000 - $24,999

less than $10,000did not invest in 2010

Company Revenue

<$5 million

$5 million+



35foliomag.com | MAY 2011 Folio:

say they spent less than $10,000.

The majority of large publishers

spent the bulk of their tech invest-

ment on the Web site while smaller

publishers spent the most on com-

puter hardware and software.

Wat’s Next

Smaller and larger publishers have

many of the same priorities in 2011.

Revenue growth and increasing

protability are the top priorities

for both larger and smaller b-to-

b publishers in 2011 [Chart 14,

page 36] as is increasing the Web

business and delivering ROI for

advertisers.Cutting costs remains a top

priority for 10 percent of smaller

publishers.

Meanwhile, 35 percent of larger

publishers plan to launch an online

startup while 20 percent expect to

launch a new print magazine in

2011 (a fairly high number con-

sidering the shift away from print

in recent years). Last year, just 12percent of larger publishers said

they expected to launch a new print

product. “We’re being protable by

0 5 10 15 20 25 30

CHART 11: In what one area was your organization’s largesttechnological investment in 2010?

30%

20%

7%

1%

3%

23%

21%

19%

9%

3%

5%

4%

0%0%

29%

0%

1%

2%

computerhardware/software

web site

CMS

lead generation system

social media

video

webinars

other

did not invest in 2010

computerhardware/software

web site

CMS

lead generation system

social media

videowebinars

other

did not invest in 2010


$5 million+

0 10 20 30 40 50

CHART 12: In which of these areas is your organization planning to hire in 2011?

33%

23%

11%

8%

7%

4%

6%

5%

44%

37%

43%

31%

17%

9%

8%

8%

1%

0%

sales

e-media

editorial

marketing

events

design

production-

circulation

other

sales

e-media

editorial

marketing

events

design

production-

circulation

other

Company Revenue

<$5 million

$5 million+




growing our smaller publications,”

said one respondent.

Meanwhile, 27 percent of smaller

b-to-b publishers plan to launch an

online startup, while just 13 percent

are planning a magazine startup.When it comes to mergers and

acquisitions, 25 percent of larger

publishers say they’re looking to

buy another company, compared to

4 percent of smaller publishers. Just

5 percent of larger publishers expect

to be sold, compared to 7 percent of

smaller publishers.

METhOdOlOgy

The survey sample of 1,000 was selectedby Folio: and Readex Research from

domestic subscribers with executive

management titles in b-to-b and con-

sumer publishing. Data was collected

via mail survey from January 14, 2011

to February 28, 2011. Results were fl-

tered to include only those who say they

are involved in b-to-b publishing. The

margin of error based on those 217 re-

spondents is plus or minus 6.2 percent

at the 95 percent confdence level.

0 5 10 15 20 25 30 35

CHART 13: Which of the following changes do you anticipatefor your organization in 2011?

27%

23%

13%

4%

7%

35%

33%

20%

25%

5%

online startup

ancillary servicestartup

magazinestartup

acquisition of another company

acquisition by another company

online startup

ancillary servicestartup

magazinestartup

acquisition of another company

acquisition by another company

Company Revenue

<$5 million

$5 million+

0 10 20 30 40 50

CHART 14: What would you consider yourorganization’s top priorities for 2011?

45%

47%

38%

24%

22%

17%

16%

16%

13%

10%

10%

5%

4%

4%

49%41%

39%

31%

20%

19%

17%

12%

5%

7%

7%

5%

3%

3%

revenue growth

increasing profitabilityincreasing web business

delivering ROI for advertiserscreating new marketing

tools for advertisers

revenue diversificationincreasing market share

creating live events

editorial integrity

cutting cost

spin-off businesses

hiring

staff stability

other

revenue growthincreasing profitability

increasing web businessdelivering ROI for advertisers

creating new marketingtools for advertisers

revenue diversificationincreasing market share

creating live eventseditorial integrity

cutting cost

spin-off businesseshiring

staff stabilityother

Company Revenue

<$5 million

$5 million+

2011_B-To-B CEO Survey - Publishers

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