Monthly maganomics lesson: In other industries, when revenues are up, but the amount of inventory necessary to generate those revenues are down, it is called “an increase in productivity” or “improving margins.” However, in the magazine industry,such a phenomenon results in reports that “advertising pages are slumping.” Again, class, this means, can I be more clear on this (anybody?, anybody?), that last year, magazines were giving away advertising pages; that the goat ate the rate card. This year, well, only pages that are being sold are appearing — pages are not appearing if they are not generating revenue. (Maybe I’m revealing a trade secret here, or something.) I’m sure I’ll be explaining this again next month.
Later: Larry Dobrow of Mediapost continues to flunk maganomics.