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WAN IFRA - Larry Kilman World Press Trends September 2012

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World Press Trends

Larry KilmanDeputy CEO, Executive Director of Communications and Public Affairs, WAN-IFRA

World Press TrendsWorld Newspaper Congress, Kiev, 3 September 2012 Larry Kilman Deputy CEO, WAN-IFRA larry.kilman@wan-ifra.org

www.wan-ifra.org

2012 WAN-IFRA

Newspapers are the worlds most influential medium.Over half the worlds adult population read a daily newspaper: Over 2.5 billion in print More than 600 million in digital form More readers/users than users of the internet (2.2 billion) Twice as many content consumers than mobile Growing franchise in print and digital combined 400 years of print are the foundation for digital growth

Sources: World Press Trends, ITU, Comscore

2012 WAN-IFRA

World Press Trends:A changing industry requires a more dynamic and usable reference guide. WPT collects:Circulation from more than 150 countries Advertising revenues from more than 90 countries Data on more than 90% of global newspaper industry turnover

A moving target:Rapidly changing industry Changes in data collection and definition Dependent on local resources and international data suppliers.

2012 WAN-IFRA

Audience

2012 WAN-IFRA

Global circulations continue to rise.

Circulations showed growth in 2011, following a period of slight decline in 2010 Circulation in 2011 was 4.2% higher than in 2007Sources: World Press Trends 2012 WAN-IFRA

Global circulations continue to rise driven by Asia while decline continues elsewhere.Asia continues to see fastest growth in circulation driven by China and India Circulations in Western Europe and North America have declined by 17% in the last five years, but rates of decline are slowing down

Sources: World Press Trends

2012 WAN-IFRA

Newspaper penetrations remain high ...with potential for growth in emerging markets

Western Europe and North America continue to have the highest levels of readership per capita by region Asia continues to see growth, way beyond the growth in population, wealth and educationSources: World Press Trends 2012 WAN-IFRA

Newspapers remain popular in traditional markets with Asian increasing in dominance.Scandinavian and Alpine countries, are traditionally the worlds most popular newspaper markets Hong Kong and South Korea have risen to world leadership positions

Sources: World Press Trends

2012 WAN-IFRA

Newspaper circulation

The unsung foundation of our businessOver 2.5 billion people worldwide read a printed newspaper This figure rises significantly if Sunday and weekly newspapers are included Circulation declines are more due to decline in purchase frequency, than in declines in overall total readership Circulation still accounts for nearly 50% of newspaper revenues and remains the barometer of the industrys health It is vital that as publishers focus on their digital ambitions they continue to invest in the content and marketing of their print products

Sources: World Press Trends

2012 WAN-IFRA

Over 40%of the worlds digital audience read a newspaper online (up from 34% year ago) butSources: Comscore 2012 WAN-IFRA

Digital newspaper audiences still generate interest

rather than intensityUSA % of web users who ever visit a paper site % of daily users who visit a paper site daily % of pages viewed per visitor 66.9 17.1 1.1 Brazil 39.1 8.5 0.6 Germany 43.2 11.7 1.9 Russia 33.0 7.4 0.5 France 43.5 11.6 1.6 India 35.4 9.9 2.1

High occasional visitor numbers do not translate into high levels of regular traffic Desktop computer relatively poor environment for newspaper content (though better on mobile and tablets)

Sources: Comscore

2012 WAN-IFRA

Advertising

2012 WAN-IFRA

Newspapers falling global share of advertising reflects declines in mature markets

Newspapers attract nearly $100 billion of advertising North America accounts for 72% of the decline in the value of newspaper advertising TV continues to be the dominant mediumSources: Zenith Optimedia 2012 WAN-IFRA

Search still dominates

Search accounts for 58% of digital and 13% of all advertising expenditure.

Search still accounts for 58% of online advertising, as display advertising stalls in the digital environment Below-the-line marketing increasing share of overall expenditureSources: DMA, IAB, World Press Trends 2012 WAN-IFRA

Digital is having only a small impact on newspaper revenues and share of media spend2007Combined value $2.1 billion

2011

2.2% of all press advertising 2.8% of digital total 6.6% of non-search digital

$128B $96B

2011 2007

Newspapers

$76B $42B Digital

Sources: Advertising Association, Zenith Optimedia

2012 WAN-IFRA

Digital platforms as a source of revenue Advanced Economies (2012)

Three-quarters of publishers report less than 10 per cent of total revenues from digital 2012 WAN-IFRA

Digital platforms as a source of revenue Emerging and Developing Economies (2012)

Two-thirds of publishers report less than 10 per cent of total ad revenues from digital 2012 WAN-IFRA

Fact: Newspapers share of digital revenues reflects their share of audience intensity.

2012 WAN-IFRA

Tablets and eReaders

eReaders The game changer?Amazon reports that over half their book sales are for the tablet Le Monde reports that reading times of eReader applications are as high as those of printed newspapers American publishers have found that subscription conversion and retention levels for eReaders are higher than for print products A German study found that older people read faster on the iPad than in print Willingness to pay for content, through mobile pricing systems Potentially and exciting environment for advertisers (including branding)

Sources: Internet cuttings

2012 WAN-IFRA

News consumers are showing a remarkable affinity with eReaders11% of US adults already own a tablet computer of some sort 53% of tablet users consume news on their tablet daily Three-in-ten tablet users say they now spend more time consuming news than they did before purchasing their tablet Tablet news users say they prefer tablets over traditional computers, print publications or television 14% of tablet news users have paid directly for content on their devices. 59% of tablet news users say the tablet replaces what they used to get from a print newspaper or magazine 30% of tablet news users now spend more time getting the news than they did before they had their tabletSources: Pew Research Centre/ The Economist 2012 WAN-IFRA

Conclusions

2012 WAN-IFRA

The model needs to changeThe growth in digital audiences, in the current model, may replace the overall numbers lost in print, but current advertising growth levels are not replacing lost revenues. The focus must be on engagement and audience intensity. This will drive advertising revenues and a case for access pricing New devices are overcoming the barriers to consumption: Improved interface Better navigation and user environment Publishers must continue to invest in the foundations of their business as they build their new digital world

2012 WAN-IFRA

Areas identified by participants to create the most opportunities for revenue generation and efficiencies (2012)

2012 WAN-IFRA

World Press TrendsWorld Newspaper Congress, Kiev, 3 September 2012 Larry Kilman Deputy CEO, WAN-IFRA larry.kilman@wan-ifra.org

www.wan-ifra.org

2012 WAN-IFRA

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