B-to-B industry grows 3.3 percent in first half

Sept. 12, 2012 - The business-to-business media and information industry grew 3.3 percent in the first half of 2012, from $12.09 billion for the first six months of 2011 to $12.49 billion for the corresponding period this year. Revenues for three of the four component parts of ABM’s Business Information Network Report grew: trade shows, the largest component, up 4.4 percent; digital advertising, up 14.2 percent; and data and business information, up 7.4 percent. The second-largest component of the BIN Report, print advertising, fell 4.2 percent.

The total industry revenue figure for the first half of 2012 declined by a slight 0.3 percent in comparison with the prior half-year, from $12.52 billion for the second half of 2011 to $12.49 billion for the first half of 2012.

 BIN Report - total industry revenue reported semi-annually in $billions bar graph

Looking at how each component contributes to the BIN Report, trade shows and events comprises 45.7 percent of the total; print advertising, 30.0 percent; digital advertising, 15.6 percent; and data, 8.8 percent. Following long-running trends, the print component continues to make up a slightly smaller slice, while the digital component continues to grow its share of the pie.

BIN Report - revenue stream sourcing by channel pie chart - event, data, digital, print

Considering the market components that drive the print advertising figures, the only market segment reporting a double-digit percent increase was agriculture magazine advertising, up 11.2 percent, while four b-to-b magazine segments saw double-digit percent decreases: computing and software, down 22.3 percent; healthcare, down 12.2 percent; movies, radio, TV, down 10.8 percent; and aviation and military, down 10.1 percent. In total, 15 of the 22 print market segments saw print ad revenue fall.

The data and business information component of the BIN Report has been revised upward by Outsell to reflect improved revenue information recently made available. “Almost all of the increase in total data revenue is the result of increased visibility into McGraw-Hill Platts revenue and Reed Elsevier reports of RBI data revenue, especially from FlightGlobal following the acquisition of Ascend Aviation and Accuity, acquired from SourceMedia parent InvestCorp,” says Chuck Richard, vp and lead analyst at Outsell.

For 2012, the BIN Report revised its estimation of the contribution from digital advertising based on a deep analysis of the Interactive Advertising Bureau’s (IAB) Internet Advertising Revenue Report. The revised data can be seen in the following table, with corrections extending back to 2010. In the table, data in red represents an ABM estimate based on the source data, and for 2012, the data in red is actually a forecast. A detailed explanation of the methodology for that analysis can be found here on ABM’s MediaPace blog.

BIN Table

The data presented for the BIN Report’s four components is not adjusted for inflation.

ABM compiles the core data for its BIN Report from four sources. Trade show data is contributed by CEIR, the Center for Exhibition Industry Research. The data and business information stream is provided by Outsell, a research and advisory firm focused on the publishing and information industries. Digital advertising data is an ABM estimate based on first quarter 2012 data from the Interactive Advertising Bureau; ABM will revise its estimates after IAB releases its second quarter 2012 data in mid-October. The print advertising data for the first half of 2012 is provided by Inquiry Management Systems (IMS), a technology- and research-based publishing service bureau; the print data for previous periods has not been revised and is an ABM estimate based on the figures released at the time by IMS.

By Michael Moran Alterio