Brand extensions ‘to earn £1bn for consumer mags’

Revenue from consumer magazine brand extensions is predicted to increase five-fold to more than &£1bn over the next three years, according to new research commissioned by the Periodical Publishers Association.

Brand extensions account for about six per cent – or &£200m – of the total &£3.2bn revenue for the consumer magazine sector. The PPA predicts that revenue from brand extensions will rise to 22 per cent of the total by 2003, accounting for about &£1bn of an expected &£4.6bn total revenue for the sector.

The report, called Developing Consumer Magazine Brands, was unveiled at the PPA Magazines & B2B 2000 conference this week. It is based on in-depth questionnaires and interviews with 60 key people in consumer magazine publishing.

The survey estimates that electronic activity accounts for &£25m – about an eighth of the total revenue for brand extensions. It predicts that revenue from electronic activity will increase to &£586m – about half of the total estimated revenue from brand extensions.

By 2003, 57 per cent of consumer magazine publishers believe they will be either a multimedia publishing company or a multimedia communications company.

Websites are the most popular form of brand extension, with 90 per cent of respondents currently undertaking them. Activities to reinforce core brand values apart from websites include masthead TV and radio programmes.

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