Monday, 22 February 2016

How magazines make money.

Magazine publishers earn money from advertisements, subscriptions & the sales generated from newsstands. One of the most common way, though is through advertisements. For popular magazines such as "Marie Claire" or "Cosmopolitan", it is much easier for them to generate revenue through the advertisements in their magazines since they have a stable customer base that continually purchase and read every issue. Marie Claire has a total of 351 pages per magazine, however 90 of these pages contain adverts; Marie Claire charges £17,807 for one full page of advertising which means they will gain a total of £1,602,630 for advertising revenue. So, the more magazines purchased by consumers, the more they will gain revenue. Here is a screen shot of Marie Claire's rate card which includes their rate for advertising:

Companies who choose to advertise their products in Marie Claire have done this because they know that Marie Claire has a loyal customer base so they know that consumers will view their products, and may be persuaded in buying them. Usually, companies with similar target audiences will more likely to advertise their products in a magazine that would be interested in buying them, for example new fashion products would be advertised in Marie Claire and fitness products would be advertised in Men's Health.

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