Transcript
Page 1: WAN IFRA - Larry Kilman World Press Trends September 2012

World Press Trends

Larry Kilman

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

Page 2: WAN IFRA - Larry Kilman World Press Trends September 2012

World Press TrendsWorld Newspaper Congress, Kiev, 3 September 2012

Larry Kilman

Deputy CEO, WAN-IFRA

[email protected]

© 2012 WAN-IFRAwww.wan-ifra.org

Page 3: WAN IFRA - Larry Kilman World Press Trends September 2012

Newspapers are the world’s most influential medium.

� Over half the world’s 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

Page 4: WAN IFRA - Larry Kilman World Press Trends September 2012

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

Page 5: WAN IFRA - Larry Kilman World Press Trends September 2012

Audience

© 2012 WAN-IFRA

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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 2007

Sources: World Press Trends © 2012 WAN-IFRA

Page 7: WAN IFRA - Larry Kilman World Press Trends September 2012

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 declineare slowing down

© 2012 WAN-IFRASources: World Press Trends

Page 8: WAN IFRA - Larry Kilman World Press Trends September 2012

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 education

© 2012 WAN-IFRASources: World Press Trends

Page 9: WAN IFRA - Larry Kilman World Press Trends September 2012

Newspapers remain popular in traditional markets… with Asian increasing in dominance.

� Scandinavian and Alpine

countries, are traditionally

the world’s most popular

newspaper markets

� Hong Kong and South Korea

have risen to world

leadership positions

© 2012 WAN-IFRASources: World Press Trends

Page 10: WAN IFRA - Larry Kilman World Press Trends September 2012

Newspaper circulation

The unsung foundation of our business

� Over 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 industry’s

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

© 2012 WAN-IFRASources: World Press Trends

Page 11: WAN IFRA - Larry Kilman World Press Trends September 2012

Over 40% of the world’s digital audience read a newspaper online

(up from 34% year ago)……but

© 2012 WAN-IFRASources: Comscore

Page 12: WAN IFRA - Larry Kilman World Press Trends September 2012

Digital newspaper audiences still generate interest

rather than intensity

� 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)

USA Brazil Germany Russia France India

% of web users who ever visit a paper site

66.9 39.1 43.2 33.0 43.5 35.4

% of daily users who visit a paper site daily

17.1 8.5 11.7 7.4 11.6 9.9

% of pages viewed per visitor

1.1 0.6 1.9 0.5 1.6 2.1

© 2012 WAN-IFRASources: Comscore

Page 13: WAN IFRA - Larry Kilman World Press Trends September 2012

© 2012 WAN-IFRA

Advertising

Page 14: WAN IFRA - Larry Kilman World Press Trends September 2012

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 medium© 2012 WAN-IFRASources: Zenith Optimedia

Page 15: WAN IFRA - Larry Kilman World Press Trends September 2012

Search still dominates

� Search still accounts for 58% of online advertising, as display advertising stalls in the digital environment

� Below-the-line marketing increasing share of overall expenditure

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

© 2012 WAN-IFRASources: DMA, IAB, World Press Trends

Page 16: WAN IFRA - Larry Kilman World Press Trends September 2012

Digital is having only a small impact on newspaper revenues and share of media spend

Newspapers

$42B

2007

$76B

2011$96B

2011

$128B

2007

Digital

� Combined value $2.1 billion

� 2.2% of all press advertising

� 2.8% of digital total

� 6.6% of non-search digital

© 2012 WAN-IFRASources: Advertising Association, Zenith Optimedia

Page 17: WAN IFRA - Larry Kilman World Press Trends September 2012

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

Three-quarters of publishers report less than 10 per centof total revenues from digital

© 2012 WAN-IFRA

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

Two-thirds of publishers report less than 10 per centof total ad revenues from digital

© 2012 WAN-IFRA

Page 19: WAN IFRA - Larry Kilman World Press Trends September 2012

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

© 2012 WAN-IFRA

Page 20: WAN IFRA - Larry Kilman World Press Trends September 2012

Tablets

and eReaders

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eReadersThe 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

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News consumers are showing a remarkable affinity with eReaders

� 11% 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 tablet

Sources: Pew Research Centre/ The Economist © 2012 WAN-IFRA

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Conclusions

© 2012 WAN-IFRA

Page 24: WAN IFRA - Larry Kilman World Press Trends September 2012

The model needs to change

� The 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

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

© 2012 WAN-IFRA

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World Press TrendsWorld Newspaper Congress, Kiev, 3 September 2012

Larry Kilman

Deputy CEO, WAN-IFRA

[email protected]

© 2012 WAN-IFRAwww.wan-ifra.org


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