What will Meredith’s acquisition of Time Inc. mean for the Hispanic Magazine market?
The U.S Magazine market will change substantially if the acquisition of Time Inc by Meredith Corporation is confirmed in the next few days. Many questions are open including whether the cultures of New York City's (Time Inc) will clash with Des Monies, Iowa based Meredith.
The new company would have average an average magazine circulation of about 55 million. By far the leader in the U.S. magazine market, followed by a distant Hearst Magazines with a circ of over 30 million. During Q4 2012 combined sales would have been US $1,216 million (US $967 million at Time Inc and US 4 249 million at Meredith)
Combining Time Inc and Meredith Hispanic Ventures would amount to half of the ad revenues of the Hispanic magazine market.
But how would the possible merger impact the Hispanic Magazine Market? We talked with Carlos Pelay, president of Media Economics Group, a Hispanic digital and print media advertising tracking service, in order to answer this question. Both Time Inc and Meredith are important players in the Hispanic market. People en español, which alone amounts to a third of the Hispanic magazine advertising volume, immediately would become the new company's leading Hispanic title, followed by Meredith's Ser Padres (parenting title) and Siempre Mujer. In fact, the ad revenues of Meredith Hispanic Ventures titles and Time Inc's People en español together amount to half of the annual advertising revenues of the Hispanic magazine market.
Are People en español and the Meredith titles good or competitors when it comes to lure media buyers in different advertising categories. Carlos Pelay, president of Media Economics Group, tells Portada that, "they are competing in the same space, of course, although Siempre Mujer is more directly targeting female readers with a readership that is 75% female, compared to 50% for People en español." Pelay adds that the top 3 categories for Meredith’s baby/parenting magazines are: Personal care – Baby/Children products, Department stores, and Food products.
For Siempre Mujer and People en espanol, Personal Care Products (cosmetics, hair care, oral care, etc.) is by far the leading advertising category accounting for 50% of each magazines' total ad revenue in 2012. Food category is the second leading category for both magazines also (12.5% for Siempre Mujer and 5% for People en español).
Advertising Revenues of Meredith's and Time Inc's Hispanic titles
|People en Espanol||Time, Inc.||
|Ser Padres||Meredith Corporation||
|Siempre Mujer||Meredith Corporation||
|Ser Padres Espera (was Espera)||Meredith Corporation||
|Ser Padres Bebe (was 12 Meses)||Meredith Corporation||