In case there’s any confusion about why Condé Nast is cutting magazines and staff, Newsweek clears it up:
Through August, ad dollars already have plunged by about $600 million from the similar eight-month period in 2008 when revenues also were depressed. Of Condé Nast’s two dozen magazines, among them some of publishing’s glossiest titles, all suffered declines, most stretching into the double digits.
…The drop in ad revenue is dizzying. For the eight months ended in August, ad revenue plummeted by more than a quarter to $1.5 billion from the year-earlier $2.1 billion. Among the hardest hit titles are Architectural Digest, off by almost half to $54 million from $102.4 million; Condé Nast traveller, down 42 per cent to $62.1 million from $106.6 million; Wired, down 35 per cent to $33.4 million from $51.8 million; and Vanity Fair, off about 27 per cent to $101.8 million, from $138.8 million.
Revenue figures for September and October issues of Condé Nast’s monthly magazines are not yet available. However, their diminished page counts suggest the revenue shortfall is continuing. Barring an unexpected rebound in advertising spending, revenues for the rest of the year are likely to put the company’s year-over-year revenue decline at close to the $1 billion mark.