By Jeff Bercovici

    As the Nasdaq writhes in the throes of its adjustment, New Economy gurus have turned into doomsday prophets and paper billionaires have watched their fortunes go up in smoke.
      But not everybody’s feeling the buzzkill so acutely. Never mind the dot.com empires collapsing left and right; the magazines that cover them are flourishing like never before.
    As a group, business magazines have been awash in a sea of ad dollars for some time now. But the New Economy titles—Red Herring, Business 2.0, Fast Company and others—have far outstripped their traditional counterparts in percentage growth.
    Imagine Media’s Business 2.0 saw its ad revenue increase by 597 percent in the first four months of this year, vaulting from $2.7 million in January through April 1999 to $19 million in the same period of 2000. It also upped its ad pages by 327.1 percent, with 884 so far in 2000.
Red Herring has more than three times as many ad pages in the first four months of 2000—881 compared to 288 last year. Its revenue is up 365 percent to $17.6 million.
    Fast Company, meanwhile, leads the way with $19.2 million in ad revenue so far this year, compared to $7.9 million at the same point last year. Its ad pages are up 56 percent to 537.
    Things are so good, Business 2.0 is in the process of upshifting to a biweekly frequency, with Red Herring and Upside reportedly contemplating the same move.
     The Industry Standard, meanwhile, at a weekly pace, now carries more than 300 pages in an average issue.
      The big question: As the bubble economy at last threatens to burst, can we expect the torrent of internet advertising to slow to a trickle?
    Lisa Bentley, publisher of Time Inc.’s new eCompany Now, doesn’t think so.
   "We haven’t seen a blip on the screen," says Bentley, never mind the drop in the Nasdaq.
    While it's certainly possible some companies that are here today won't be around next year, says Bentley,  "The companies that are going to survive are going to be doing great."
    Further, she says, for every web company that folds there’s a traditional company going online. She cites Neiman Marcus as just one brick-and-mortar retailer that’s taken to advertising in New Economy books.
    Bentley says a shakeout isn’t inevitable, arguing that though there are a number of technology-oriented business market magazines, each occupies its own unique niche with readers; for instance, Red Herring understands the finer points of venture capital while Fast Company speaks to small business owners.
       Michela Abrams is somewhat less sanguine.
       Abrams, president of Imagine Media’s business division and publisher of Business 2.0, says the health of New Economy magazines isn’t necessarily directly dependent on the Nasdaq.
     "The market had its 24-hour flu a few weeks ago, but we haven’t seen any effect on advertising," she says.
    What’s more, she says, "With the market softening, those companies need to advertise even more than ever for various reasons."
     Ultimately, however, she acknowledges that the level of advertising available is a function of the strength of the economy.
      She predicts advertising will continue at high levels for the next year to 18 months. After that, she says, the shakeout will begin.
     "The brands that will survive will be those that prove they know how to execute an integrated media strategy," says Abrams.
"There will be a shakeout at some point. I can’t predict when, but there always is."

-Jeff Bercovici is a staff writer for Media Life

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