The South African consumer magazine market will be worth approximately R10.7 billion in 2017, up from R7.7 billion in 2012, having increased by an average compound annual rate of 6.9%.<\/p>\n
This is according to the\u00a0Fourth South African edition of PwC\u2019s South African entertainment and media outlook: 2013 \u2013 2017.<\/p>\n
PwC says that digital magazine revenues are beginning to gain traction and will grow substantially as fixed and mobile broadband penetration increases along with tablet ownership.<\/p>\n
Digital circulation revenues will increase more than tenfold from R34 million in 2012 to R370 million in 2017, the financial services firm says.<\/p>\n
Overall, the shift away from advertising spend is expected to slow significantly. Advertising spend accounted for 40% of total consumer magazine spending in 2012, down from 52% in 2008.<\/p>\n
By 2017, it will only fall to 38%, as advertising spend remains strong. Advertising spend will increase from R3.1 billion in 2012 to an estimated R4.2 billion in 2017, increasing at an average compound annual rate of 6.1% over the forecast period.<\/p>\n
The report finds that digital advertising spend will increase at a slightly slower rate from R31 million in 2012 to approximately R236 million in 2017.<\/p>\n
While South African publishers have been experimenting with new titles and closing unsuccessful titles, merger and acquisition activity remains stagnant despite significant growth in the market, PwC says.<\/p>\n
And while overall circulation in South Africa is increasing, readership is decreasing. In 2011, 50.5% of South Africans read at least one magazine in the year, but in 2012 this fell to 46.9%.<\/p>\n
Readership of individual magazines also fell, with fewer magazines reaching the threshold of 1 million readers per issue than in 2011.<\/p>\n
This is due to the changing demographics in South Africa, with a growing middle class resulting in an increase in magazine purchases by young professional couples or singletons.<\/p>\n
With more magazines being read in smaller family units, overall readership has declined at the same time as circulation has increased, PwC said.<\/p>\n
The report notes that growth in the middle class in SA has also led to increased advertising revenues, as brands seek to target households with growing disposable incomes.<\/p>\n
Digital advertising in particular will grow by a forecast CAGR of 50.4% as advertisers look to target more affluent households.<\/p>\n