Digital Revenue Growing, Events Surpass Print Revenues for B2B Publications

I’m at the American Business Media/SIIA conference today in Phoenix (come say hi if you’re here!), and just got the hot-off-the-press research from ABM’s Managing

I’m at the American Business Media/SIIA conference today in Phoenix (come say hi if you’re here!), and just got the hot-off-the-press research from ABM’s Managing Profits Report. (Although, the presses don’t seem to be so hot anymore.)Unsurprisingly, print revenues were down across the board, accounting for only 30% (on average) of total revenues across the 82 brands surveyed by ABM. In 2010, print accounted for 45%, said Jack Semler of Readex Research.More surprisingly, event revenue surpassed print revenues, accounting for 35% of total revenues, for the 36 B2B media companies that participated in the research. And digital came in third in this traditional B2B space, accounting for 28% of total revenues.Notably, digital revenues grew 23% from 2012-2013. Events revenue growth was only 4.5% for the same time period, but event revenues grew a whopping 36% between 2011-12, illustrating why this new revenue stream is the lifeblood of many B2B publications.Michael Moran Alterio presented a detailed synopsis of event revenue by company revenue size, and sized up that companies with event revenues over $5 million tend to show higher profit margins (47% on average) versus brands that had event revenues under $1 million, which had profit margins of 13% on average. Still, he recommended that all media brands explore events as an alternate revenue stream to stanch the wound of dwindling print revenues. (If you’re interested in learning more about marketing events for B2B companies, check out our How-To.)In the digital space, the ABM study found an interesting breakdown of revenues. On average, digital advertising accounted for 54% of revenues, with 13% from newsletters, 16% from paid content and 16% from other (undefined). When I asked Alterio  to elaborate, he said the study only asked about “paid content,” with no further questions about subscriptions, but  Lou Brothers of WeiserMazars (a co-presenter) said he suspected a large chunk of that was subscriber revenues (as opposed to one-off sales of reports and eBooks).Which, bodes well for digital subscription publications and marketers, since digital subscriptions are becoming more the norm in both the B2B and B2C space.One last note: Brothers interpreted the revenue data to mean that newsletters were underperforming for the level of content produced while paid content was overperforming since newsletters only accounted for 13% of revenues but paid content accounted for 16%. But I would advise against decreasing newsletter content based on that interpretation. Some may see newsletters as a revenue generator, but given the cost-effectiveness of email marketing, I say it’s wiser to see newsletters as part of your marketing strategy that leads to that 16% in paid content sales. In addition, a later talk by Todd Krizelman of MediaRadar noted that email newsletters can be a great space to sell ads, thereby generating revenue while marketing your own content.

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