Emap Advertising has announced a pounds 1 million cross-media deal
with a major beverage brand, but admitted revenue performance last year
was hampered by the disruptive advertising sales restructure.
The recently formed Emap Advertising operation has been set a revenue
target of pounds 25 million, to be gained from cross-media deals over
the next three years.
The drinks brand win follows hot on the heels of last week’s
announcement of another pounds 1 million cross-media deal to promote
BT’s GetOutThere youth internet venture.
The name of the drinks brand is not being revealed at the moment, but
the deal is thought to run across Emap’s music and men’s lifestyle
magazine brands such as FHM and Q, as well as radio stations including
Kiss.
Annual results, announced last week, revealed Emap’s UK consumer
magazine revenues grew by only 1 per cent last year and revenue from the
business magazine group fell by 2 per cent.
Chief executive Kevin Hand blamed the disappointing performance on
disruption caused by the creation of Emap Advertising’s cross-media
sales operation.
Total UK revenue, including radio, was pounds 591.5 million for the 12
months to March, an increase of 0.6 per cent.
Defending the results, Hand said Emap had pursued a strategy of
improving ad yields and developing new revenue streams from its magazine
brands.
This, he said, had resulted in a more profitable mix of revenues.
He admitted the merger of the magazine, radio and online sales teams had
caused internal disruption as people moved to new locations. Hand said
this had slowed the rate of growth in the last quarter of the year.
The chief executive also warned that the negative impact of this
disruption would carry through to this year’s first-quarter results. The
restructure was first announced last November and was completed in
April.
The group has set aside pounds 75 million for investment in digital
projects.
Other investment this year will be concentrated in rolling out
international editions of FHM. Launches are planned in Germany, Brazil
and Taiwan.