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Figuring out the yearly income on selling ad spaces in Sports Illustrated gave real insight into the world of magazine advertising and the different types of clutter that magazine readers are subjected to. In this week’s issue, October 13, 2008, 23 of the 93 pages were full page multi-colored ads. That’s about 31.2% of the pages filled with just ads. At $290,950 charged per full page ad, the total is $8,437,550 that every issue of Sports Illustrated makes in one week alone. Every year Sports Illustrated publishes 52 issues, so that means $8,437,550 per issue multiplied by 52 issues a year, Sports Illustrated is making approximately $438,752,600 a year just on ad space sales! It makes one wonder what percentage of their total revenue are subscriptions and what percentage are ad space sales. Another aspect to consider is if they publish so many issues a year, they might have to hire more staff to get more articles written at a quicker pace, which could mean higher salary and travel expenses, which could be a reason for charging more for ad space.
When a media planner is developing the media plan, the decisions he or she has to make is who the target market is, what other factors may influence the plan (special events such as the Super Bowl or Olympics, the economy, technology etc.), cost, where the ad should be promoted geographically and what medium to use that will ensure that the client gets the best media mix possible.
To reduce clutter in the magazine environment, the magazines must have fewer ads in the magazine therefore they must sell fewer ads. Magazines do not want to do this because advertisements are how they acquire revenue, which is obvious from our findings in the Sport ...