Companies in the U.S. will spend approximately $1 billion for custom publishing services in 1999, according to a study conducted by the Magazine Publishers Association, Veronis, Suhler & Associates and the American Business Press.
A majority of U.S. firms use custom publishing to gain new customers (57%) or to retain existing ones (52%). Of 35 industries contributing to the custom publishing revenue stream, healthcare, technology, finance, insurance and real estate lead the pack. Companies are paying an average of $300,000 per custom title, according to the study.
Magazines account for 40% of all custom products and 90% of ad revenue, while newsletters make up 29%. The remaining balance includes video, audio, Web and CD-ROM. Firms will spend an estimated $700 million to advertise in custom products.
Sixty percent of all custom publishing titles, including 65% of the magazines, are created for consumer audiences. Business customers receive two-thirds of all custom newsletters, 92% of all CD-ROMs and virtually all custom e-mail campaigns.
Although custom publishing has been around for decades, more than half of current custom publishers entered the industry in or after 1990; nearly one quarter launched in or after 1995. Older companies – those that entered the market in the 1980s and earlier – generate an average 43% higher revenue than newer companies. However, the newer companies will be responsible for significant future growth.
Questionnaires were mailed to both large and small custom publishers in the first half of 1999. Statistical simulations were run to make the small sample size representative of large publishers. The research was analyzed by Wilkofsky Gruen Associates.
Network
