The UK economy has been turbulent over the last five years, with major events such as Brexit, COVID and the War in Ukraine sending shockwaves through most institutions and organisations. Magazines are no exception and are affected by the same external factors.

Using data from Marketforce, we explore how the UK economy has affected magazine prices in 2024, and what we can expect in the future.

Buoyant Magazine Sales in Q1 2024

Data from Q1 2024 suggests that magazine sales have increased healthily. As inflation drops and the UK economy recovers, magazine sales continue to trend upwards, since their low point during the winter period of 2022/23.

However, they are still below the peak experienced during Q2 2021. The UK’s cost of living crisis was at its peak in winter 2022/3, with high energy bills and mortgage rate increases severely affecting the public. We can see that as inflation fell over the following months, magazine sales increased:

This trend correlates with changing consumer behaviour which includes:

• 20% of Tesco shoppers (five million people) buying a magazine
• 53% of magazine buyers do so regularly
• Month-on-month footfall improved in April, up 7% MoM from March

However, 75% of magazine titles have raised their prices in the last year. Monthly magazines have experienced a 13% price rise in the last three years, with weeklies showing a 12% increase in the same period. Whilst this may seem high, food and drink prices have risen 20% since 2021, while the average price of a coffee has gone up by 30%.

The Future of UK Magazine Pricing

Knowing if and when to increase your pricing, and by how much, is challenging. The balance of increasing revenue but maintaining your customer base will be unique to every publication. However, some common tactics and approaches can be successful in most instances.

• • Seasonal Pricing: Adopting a seasonal pricing strategy that responds to demand can boost sales and revenue. For example, The Cricketer magazine increases the price by £1 at the beginning of every cricket season and reports 10% YoY growth.
  • Charm Pricing: Luxury magazines report higher sales when their price ends in a 0, while value magazines see more success when ending with a 9.
  • Goodwill Gestures: Offering additional benefits to the buyer such as gifts, additional content, double issues or discount codes can increase sales, but only when they are heavily promoted on the cover.
  • Premium, Event & Anniversary Issues: Offering premium issues with increased pagination, supplements, premium editorial content, gifting and other incentives can further increase annual revenue.

The magazine industry will need to evolve and adapt to changing market conditions and consumer behaviour, but it’s clear that demand remains for print editions. By adopting intelligent pricing that’s driven by market research, as well as building trust and incentivising buyers, profitability in H2 2024 and beyond is achievable. For more information about how InterMedia can help your organisation, don’t hesitate to contact us.