Arnoldo Mondadori Editore S.p.A.Segrate, Italy

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Mondadori Competition

Now Viewing Mondadori's competition in: Magazine Publishers (primary)

Recent Developments

Publisher Hopes Hi-Tech Ink Boosts Sales, Ad Revenue - Men's magazine Esquire will try to boost advertising and readership by using electronic ink on the cover of the October 2008 issue. A 10-square-inch display on the cover flashes the words "The 21st Century Begins Now" with a collage of illuminated images. The effect is achieved with micro-capsules of ink controlled by an electric charge.

US Magazine Sales Decline at Newsstands - US sales of magazines at newsstands fell 6.3 percent in the first half of 2008 compared to the same period in 2007, according to the Audit Bureau of Circulations, which industry analysts blame on the weak US economy. Overall magazine circulation, which includes subscriptions and newsstand sales, was flat during the 2008 period, but revenue from newsstand sales is usually higher than from subscriptions, so circulation revenue is declining for most magazines.

Ad Revenue Declines - Ad revenue at US magazines declined 3.1 percent in the first half of 2008 compared to the same period in 2007, according to Publishers Information Bureau (PIB); ad pages in magazines declined 4.7 percent. The decline is attributed to sustained economic weakness, particularly in the auto sector, in the first half of 2008. Both ad revenue and ad pages are expected to be lower throughout 2008 compared to 2007.

Competitive Landscape

Demand for magazines is driven largely by growth in consumer income. The profitability of individual companies depends highly on marketing expertise. Small companies can compete by specializing in niche topics and markets, while larger companies benefit from a wide selection of magazine titles to offer advertisers. Large companies also have economies of scale in production and distribution. The industry is labor-intensive: average annual revenue per worker is $120,000.

Magazine Publishers Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US periodical publishing and printing, which includes magazine publishing, is forecast to grow at an annual compounded rate of 3.1 percent between 2007 and 2012.

Periodical Output Growth Steadies

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating

The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

  • Demand: Tied to consumer income
  • Need effective marketing
  • Risk: Slowing economy limits spending on non-essentials

Industries Where Mondadori Competes

  • Media
    • Publishing
      • Periodicals Publishing (primary)
  • Business Services
    • Advertising & Marketing
    • Commercial Printing