Marketing Trends - October 2019
As part of our service to clients, here's a summary of some of the marketing trends we are seeing in European B2B technology. For more information, contact Mike (email@example.com).
Research Shows European Publishers in Good Health
We've recently conducted research that asked European electronics industry publishers about the performance of their business. Amazingly it seems that most publishers are actually doing rather well:
- 68% of publications grew revenue last year
- Only one publication saw a revenue decline of more than 5%
There were also some surprising results, with print revenue still contributing over 50% of publishers' income, although this is from research across Eastern and Western Europe. For more information read our blog post European Publishing Myths Smashed with Electronics Media Survey. The obvious implications of this research is that the European electronics media is still a very different industry to the media in the USA.
Aspencore Lays of Some of the Best Journalists in the Industry
Although European publications are doing well, it appears that Aspencore, a global publisher owned by electronics distributor, Arrow is not so successful. We've heard that the business hasn't been profitable, although we understand that Aspencore has obtained significant value from the databases they acquired when building the business. I have also been told that the ability to control coverage has been part of discussions when trying to recruit new lines, which in turn has brought Arrow a large increase in revenue and profits. Now much of the financial value has been extracted, a number of high-profile journalists and publishers have been laid off in what appears to be pure cost-cutting measures. Indeed, in a post that was designed to position the layoffs as "blazing a path forwards", Junko Yoshida (Global Co-Editor-in-Chief) admits, "We won’t suggest that these are not hard times."
The implication of this is that Arrow is not prepared to accept the losses we believe Aspencore is turning in, even though the publications provide powerful influence. We're interested to see whether the push for profits also leads to a decrease in independence of the publications, particularly as some of the journalists that were laid off were vocal about maintaining that independence. For more information on what is happening at Aspencore, read Layoffs at Aspencore Spook the Industry.