BtoB Media Business - January 2007 - (Page 8)
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01-15-07 A 8,10 B2DB 1/5/2007 1:05 PM Page 1 COVER STORY The Stateof
B-to-B Media Growing revenue from online products, new leadership and
international opportunities should mean a big year By Sean Callahan “We
expect that the magazine marketplace will continue to be fine, but
you’re going to see the big growth in the online sector,” said Adam
Gross, VP-marketing and communications at media investment bank Jordan,
Edmiston Group. Tech rules Gordon T. Hughes II, president-CEO of ABM,
anticipates that digital revenues will increase 22% to 25% for business
media companies in 2007. He also said these companies are generating on
average 14% of their overall revenue from e-media. Driven by
advertisers’ quest for an immediate and measurable return on investment,
business media companies are embracing online revenue opportunities in many
forms, from banner ads and webinars to video production and blogs. Case in
point: Cygnus Business Media announced in December that it was launching
the Cygnus Video Network, which will include video channels from all the
company’s 15 major markets. Cygnus’ ForConstructionPros.com kicked off
the program with the FCP Video Channel, sponsored by Caterpillar Inc. The
Internet is not the only technology that is remaking business media. In
the spring, Graphic Arts Monthly became the first Reed Business
Information publication to use Job Definition Format. XMLbased JDF
promises to transform the production process by enabling text to be
handled in one file. It is expected to cut costs and streamline
production. F or reporters, 2006 was a good year in b-to-b media.You
couldn’t turn around without bumping into an intriguing story. ¶ The
mergers and acquisitions market remained robust, with blockbuster deals
involving such big names as VNU, Penton Media and 101communications. ¶
There were big-name changes at the top as well, with several
executives—including Dow Jones & Co.’s Peter Kann, Penton’s David
Nussbaum, Canon Communications’ William Cobert and Cygnus Business
Media’s Paul Mackler—leaving their CEO positions. ¶ Meanwhile, the
influence of technology including the Internet and JDF continued to remake
the b-to-b media business. Here are 10 key stories from last year and what
they say about the declined by about 13% in pages through the first three
quarters of 2006, continues to weigh down the BIN numbers. The overall
estimated annual revenue generated by print publications $10.80 billion is
similar to that generated by events $10.40 billion , which shows that
business media are not onetrick ponies any longer but truly reliant on a
triumvirate of channels: in print, in person and online. Private equity in
the public eye The sale of VNU for about $11.1 billion to a consortium of
private equity funds showed the power of private equity in the media
world. It also showed that private equity funds continue to be enticed by
b-to-b media’s cash flows. The consortium included Blackstone Partners,
which brought along former Advanstar chairman Robert Krakoff to run VNU
Business Media. The VNU sale was one of numerous b-to-b media deals fueled
by private equity. Virtually every significant deal, including those for
Penton and 101communications, not only involved private equity money, they
had private equity state of b-to-b media. Magazines still have some
ammunition Through September 2006, b-to-b advertising pages increased 1.1%
compared with the same period in 2005, according to Business Information
Network figures released by American Business Media. Pages increased by
3.9% in 2005. The figures show the relative health of print publications,
especially considering that the technology sector, which 8 | Media
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http://ForConstructionPros.com
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Table of Contents for the Digital Edition of BtoB Media Business - January 2007
Contents
Upfront
Cover Story
Feature
Sales & Marketing
M&A
Events
Production
Online
Circulation
People
Benchmarks
Endnote
BtoB Media Business - January 2007
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