Sports titles, food titles and many lifestyle titles are witnessing non renewals of sponsorship or big demands on value added benefits for 2010.
ACP Magazines food glossy Australian Gourmet Traveller is one believed to have lost a $250,000 sponsor in a harbinger of the tough year unfolding in the magazine advertising market, according to The Australian.
Electrical appliance maker Electrolux is said to have ended its three-year sponsorship of the title's annual restaurant awards and its Restaurant Guide as part of global cost-cutting caused by worsening economic conditions.
Electrolux Australia managing director John Brown said the company did most of its advertising in newspapers and magazines.
"There will be a significant reduction in that sort of advertising this year," he stated in The Australian.
Another industry source said Paris retail giant LVMH Group had cut its local advertising this year by 30 per cent.
Despite spending less, advertisers were getting more demanding.
"Last year was OK until the last quarter," MediaCom Australia business director Scott McCaffrey said.
"This year, across the board, clients' budgets have been reduced. Clients are expecting so much more, not just in rates but in value as well. They'll certainly be pushing titles to get additional value."
A good example was MediaCom client Audi, which had signed as principal sponsor of Pacific Magazines' InStyle new "Women of Style" awards.
"With this, there's a whole heap of added value involved," Mr McCaffrey said.
ACP was also working hard to generate ad revenue, launching its own magazine beauty awards and introducing a second themed promotional advertising event "30 Days of Health and Wellbeing", in June.
Consumer magazine advertising increased 4.1 per cent to $780 million in 2007, according to PricewaterhouseCoopers' Australian entertainment and media outlook.
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