Hispanic Magazine Publishers Adapt to a Tough Economy.

Hispanic magazine publishers are responding to a harsh media environment by adjusting publication frequency, reducing circulation and - in some cases - combining and suspending or folding publications.

Recent data show that the downturn in advertising spending which began in 2008 intensified in the fourth quarter and has become even more severe in the current quarter.  For all of 2008, ad pages for Hispanic magazines were down by 11.8%¹ and estimated ad revenue was up by only 1.9%.

For the first two months of 2009, however, the ad page decline was steeper (-17.2%) and ad revenue had dropped by 20.9%. 

Preliminary full first quarter estimates for the largest titles show a continuing severe decline in ad pages and dollars:

• Cosmopolitan en Español (-7.4% pgs; -19.5% dollars

• Hispanic Business (-6.9% pgs; -7.6% dollars)

• Latina (-27.6% pgs; -21.1% dollars)

• People en Español (-24.8% pgs; -16.2% dollars)

• Selecciones (-13.9% pgs; -7.2% dollars)

• Siempre Mujer (-39.8% pgs; -27.6% dollars)

Publishers adjust circulation and frequency.

Presumably in response to a deteriorating economic environment, a greater number of publishers than usual made adjustments (mostly downward) to their circulations and frequency in 2009. 

For example:

• American Media has made a number of changes to Mira!:  Publication frequency has increased from 26x in 2008 to 52x in 2009.  However, rate base has been reduced from 120,000 to 50,000 as home delivery has been suspended and Mira! has become a newstand-only publication.
   
• Comida y Familia (Kraft) has reduced its rate base from 1,000,000 in 2008 to 540,000 in 2009 (-460,000).  Frequency has also dropped from 5x to 4x per year.
   
• Televisa Publishing has reduced rate base for two of its ABC-audited publications: TV y Novelas rate base has been reduced from 190,000 to 155,000 and Vanidades rate base has been reduced from 155,000 to 125,000.  In addition, publication frequency for Hispanic Magazine has been cut from 10x in 2008 to 8x in 2009.
   
• Impremedia has reduced publication frequency for newspaper-inserted Vista magazine from 10x to 5x per year.  Rate base remains unchanged at 900,000 per issue.
   
• Meredith has reduced the frequency of Ser Padres Bebe from 2x to 1x per year in 2009, but has increased its rate base from 300,000 per issue last year to 600,000 per issue in 2009.  Rate base for Ser Padres Espera has dropped slightly from 375,000 to 350,000.

Not all publishers are reducing circulation, however, some have increased their rate base/circulation in 2009:

• Casa & Estilo (from 36,182 in 2008 to 39,040 in 2009)

• Fama (from 150,000 in 2008 to 178,688 in 2009)

• Hispanic Network Magazine (from 112,000 in 2008 to 125,000 in 2009)

• LaTeen Magazine (from 60,000 in 2008 to 100,000 in 2009)

• Latino Leaders (from 99,826 in 2008 to 162,789 in 2009)

• People en Español (from 515,000 in 2008 to 540,000 in 2009)

• Siempre Mujer's rate base has increased from 400,000 last year to 450,000 in 2009 (and continues to be published 6x per year)

• TV Notas (from 57,420 in 2008 to 58,322 in 2009)

Publishers combine, suspend, or fold some titles.

A number of Hispanic magazines folded or suspended publication as economic conditions eroded in 2008.  These include: Batanga (last issue was August/September, 2008), Casa y Hogar (October/November, 2008), ESPN Deportes - La Revista (December/January, 2008), Estylo (June, 2008), Latino University (March, 2008), Sports Illustrated Latino (December/January, 2009), Todobebe (May, 2008), and Tu Ciudad Los Angeles (June/July, 2008).

While no official announcements have been made, we have learned unofficially that Megazines Group will suspend publication of both of its newspaper-inserted titles: Kena and Sobre Ruedas.  We have also confirmed with Ocean Drive en Español's publisher that this magazine has also ceased publication (last issue is March, 2009).

Other publishers have combined existing publications to reduce their portfolio.  Televisa Publishing folded Hispanic Enterprise (last issue June/July, 2008) into Poder and rebranded the combined magazine as Poder Enterprise.

Beginning with 2009, Meredith has also rebranded its 12 Meses magazine as Ser Padres Bebe and Espera as Ser Padres Espera.  With the folding last year of Healthy Kids en Español into Ser Padres, Meredith now publishes four Spanish-language magazines: Ser Padres, Ser Padres Bebe, Ser Padres Espera, and Siempre Mujer.

Some Publishers proceed with New Launches.

Even given this difficult environment, however, two major launches have gone forward. 

• Con tu Familia: published by Cuatro Media (which also publishes Fox Sports en Español magazine), is a new quarterly, newspaper-inserted magazine in Spanish.  Circulation is 300,000.
   

• Disney en Familia:  this magazine published two issues in 2008 and then will begin quarterly distribution in 2009.  Disney en Familia has a circulation of 350,000 and is distributed free by mail to Spanish-speaking and bilingual homes with kids age 4-12 (households identified via the Disney customer database).

¹ All previous-year comparisons are on a "same-titles" basis (i.e. excluding new launches, folds, and any magazines with frequency changes).  This provides for more consistent comparisons from month-to-month.

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Thanks for reading....please let me know if you have any questions about this month's HispanicMagazineMonitor newsletter and/or if I can be of help in any way.

Also, please feel free to forward this email to any colleagues or friends who you feel would be interested.

- Carlos

______________________________
 Carlos Pelay
 Media Economics Group
*Multicultural Advertising Intelligence*
 carlos@media-economics.com
704-841-2030 (main)
 http://www.Media-Economics.com