Magazines reported paid and verified digital circulation of 7.9
million in the second half of last year -- just 2.4% of their total
print and digital circulation, according to the Alliance for
Audited Media. That number does not include every non-replica
edition because some publishers don't report them to the AAM.
One impediment for iPad ads is cost. There are more production
costs required for interactivity, and some publishers, including
Condé Nast and Meredith, have charged advertisers for
But more print advertisers are opting in, said Chris Kevorkian,
chief marketing officer at the MPA-Association of Magazine Media.
"There's real growth in marketers saying "Let's move on, let's go
into this platform.'"
Tablet ownership in the U.S. has nearly doubled in the past
year, with 34% of American adults owning a tablet, up from 18% a
year ago, according to the Pew Research Center. With 56% of these
tablet owners living in households that earn at least $75,000
annually, publishers are pitching brands on reaching affluent
Bloomberg Businessweek offers advertisers several ways to appear
on its iPad and iPhone app. The cost of a quarterly sponsorship --
which includes a full-page ad, a "brought to you by" logo and
various banner ads -- is $85,000. IPad advertisers are given
certain performance metrics on their ads, such as time spent and
content downloads. Microsoft Dynamics and Credit Suisse USA are
among the brands to sponsor sections. The magazine plans to offer
monthly sponsorships starting in the third quarter of this
"There's a certain first-mover status for advertisers on the
tablet," said Hugh Wiley, publisher, Bloomberg Businessweek. The
magazine does not bundle print and iPad ads, meaning advertisers
who want to appear in both must pay separately. The open rate for a
full-page ad in the weekly's worldwide edition is $161,600.
Mr. Wiley said Bloomberg Businessweek does not discount its
mobile or iPad ads, because there is limited inventory and high
demand. "IPad is a big revenue driver for us," he said. The
publication, which in May had more than 225,000 mobile- and
tablet-app subscribers, saw first-quarter ad revenue on the app
grow 147% from a year earlier.
But while the platform is gathering steam, buyers said
publishers still need to provide more ad-performance data.