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Dean Roper Director of Publications, WAN-IFRA [email protected] CMPF Summer School 2013 for Journalists and Media Practitioners http://cmpf.eui.eu/training/summer-school-2013.aspx
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World Press Trends CMPF Summer School 2013, Florence, 14 May 2013
Dean Roper
Director of Publications, WAN-IFRA
© 2013 WAN-IFRA www.wan-ifra.org
Over 2.5 million in print
More than 600 million in digital form
Sources: World Press Trends, ITU, Comscore © 2013 WAN-IFRA
Over half the world’s population read a daily newspaper
This presentation
Latest trends and developments Golden Age of Experimentation
World Press Trends 2012 Facts & figures
© 2013 WAN-IFRA
About WAN-IFRA
WAN-IFRA = World Association of Newspapers
and News Publishers
Non-profit association
Mission: ”to defend and promote press freedom, quality
journalism and editorial integrity and the development of
prosperous businesses and technology.”
© 2013 WAN-IFRA
WAN-IFRA members
+ 18,000 publications
+ 15,000 online sites
+ 3000 media companies
In more than 120 countries
© 2013 WAN-IFRA
Business/Organising models
Paid Content Strategies
Mobile and Tablet Explosion
New Age Journalism?
Advertising Advances?
© 2013 WAN-IFRA
Golden Age of Experimentation
Business/Organising models
- Print +: Print still reigns, digital is an add-on
- Print-Digital: Investing in print, investing in
digital
- Digital Transformation: Managing print for
profit, digital for growth
- Digital First: Aggressive, fearless, acquisition,
cutting print cost to the bone
© 2013 WAN-IFRA
Golden Age of Experimentation
One other strategy increasingly emerging…
- CONSUMER FIRST: Learn as much about your
customer base before launching any new strategy,
product or service.
© 2013 WAN-IFRA
Golden Age of Experimentation
What does print mean today?
- High-quality printing an absolute must for both daily and niche
products
- more niche products, semicommercial, magazine like
- frequency in question: daily? mid week plus weekend? just
weekend?
- reading experience will be more analytical, opinion, feature,
contextual
The bottomline: Publishers will increasingly manage print for profit
© 2013 WAN-IFRA
Golden Age of Experimentation
What does digital mean today?
- The culture: fearless, experimental, not afraid to fail.
- Products quick to market (speed), innovative, perhaps have
short lifespans
- Costs: variable
The bottomline: Manage digital for GROWTH!
© 2013 WAN-IFRA
Golden Age of Experimentation
The CONUNDRUM:
75% of all publishers still reap 90% of their revenues from the
print side of the business.
The digital pioneers who saw it all coming:
Schibsted in Norway, Springer in Germany, Ringier in
Switzerland, Sanoma in Finland, etc.
- They are reaching that envious position of 50-50 digital-print
revenues.
Sources: World Press Trends, ITU, Comscore © 2013 WAN-IFRA
Golden Age of Experimentation
PAID CONTENT Surge
- About 600 newspapers have launched some sort of paywall
in the US
- About 100 newspapers in Europe have or are about to
launch paywalls
- Publishers in Asia also are getting in on the game, as well as
in Latin America
Sources: PaidContent.Org © 2013 WAN-IFRA
Golden Age of Experimentation
PAID CONTENT Models
Two leaders so far
Metered: Visitors to the site must subscribe after accessing,
typically, 10-20 articles.
- Bundle subscriptions with print readers, all-access offers
- NYT, 80 Gannett newspapers, others in US
Freemium: Editors select what content will be free and what
premium content they will charge for.
- Dallas Morning News, Wall Street Journal, Springer titles in
Germany
© 2013 WAN-IFRA
Golden Age of Experimentation
PAID CONTENT Models
- Upside: In the US, circulation revenue grew 5 percent in 2012. It
is the first gain in this category since 2003, thanks to digital-only
subscriptions and the higher prices being charged for print-only and
print-plus-digital bundles.
- Downside: Critics say paywalls, particularly metered models, may
be strong at converting print loyalists to digital offers, but it falls
short in truly targeting new customers.
Sources: NAA © 2013 WAN-IFRA
Golden Age of Experimentation
PAID CONTENT Models
Lessons learned:
- Make payment systems easy, single sign in
- Customer service centre in place just for this
- Complex, long process to integrate various systems
(legacy) to deal with bundled subscriptions (CRM).
- Content must be unique
- Invest in analytics to gauge what readers like, to match
content with marketing campaigns, i.e. maximise
monetisation.
© 2013 WAN-IFRA
Golden Age of Experimentation
PAID CONTENT Models
Reality check:
Like tablets, paywalls should be considered as one part of an
overall digital strategy. It is NOT a panacea for news
publishers.
© 2013 WAN-IFRA
Golden Age of Experimentation
Mobile and tablets
Mobile explosion
- Mobile subscribers worldwide will reach 6.9 billion by the end
of 2013, about 90% of the world’s population
- In the developed world, there is one mobile per person.
- China is the largest mobile market in the world, but with
only about 18% of the population owning one.
- 84% of the population in Africa will have a mobile by 2015
and most will be accessing the Internet for the first time via a
mobile.
© 2013 WAN-IFRA
Golden Age of Experimentation
Sources: ComScore, Portio Research
Mobile and tablets
“In the not so distant future, more people in Africa
will be connected via mobile phone than have
electricity at home.”
-Trevor Ncube, Deputy Executive Chairman,
the Mail & Guardian, South Africa
© 2013 WAN-IFRA
Golden Age of Experimentation
Mobile and tablets
Tablets building mass
- Research firm NPD DisplaySearch says new
tablet shipments will outnumber laptops for the
first time in 2013.
- Tablet shipments will jump to 256.5 million
globally in 2013, then more than double to
579.4 million by 2017.
© 2013 WAN-IFRA
Golden Age of Experimentation
Sources: NPD DisplaySearch
Tablet trending
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
Willingness to pay for content, through mobile pricing systems
Potentially and exciting environment for advertisers (including branding)
Sources: Internet cuttings © 2013 WAN-IFRA
© 2013 WAN-IFRA
Golden Age of Experimentation
Tablets
La Presse +
- US$ 40m investment
- 3 years development
- 100 journalists hired
- Free subscriptions
- Dedicated edition
- Video, audio, infographics
- 26 ad templates
New Age Journalism?
Maintaining quality journalism in the face of:
- Shrinking newsrooms staffs
- Ethics, trust, regulation issues
- A largely print-centric staff are being asked to do largely
digital tasks.
- 1-2 daily deadlines being replaced with 1500.
© 2013 WAN-IFRA
Golden Age of Experimentation
New Age Journalism?
Embracing new forms of story-telling
- While the array of digital tools can be daunting, they can still
help and improve the life of a carefully constructed story.
- Data journalism opens new doors.
- Visual/video/audio offer incredible new ways of story-telling.
- Engaging on social media platforms only brings us closer to
our audience… a path to growth.
- And long form journalism is getting new legs thanks to e-
books.
© 2013 WAN-IFRA
Golden Age of Experimentation
Sources: ComScore, Portio Research
Advertising Advances?
- Sponsored content/native advertising
- Pulling video content/advertising from behind walls to reap
larger profit margins
- Datawalls: combining real-time bidding to increase CPMs
- Dynamic, interactive ad formats for tablets.
- Incorporating analytics and metrics to “chase” the audience
© 2013 WAN-IFRA
Golden Age of Experimentation
Sources: ComScore, Portio Research
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.
© 2013 WAN-IFRA
Audience
© 2013 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 2007
Sources: World Press Trends © 2013 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
© 2013 WAN-IFRA Sources: World Press Trends
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
© 2013 WAN-IFRA Sources: World Press Trends
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
© 2013 WAN-IFRA Sources: World Press Trends
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
© 2013 WAN-IFRA Sources: World Press Trends
Over 40% of the world’s digital audience read a newspaper online (up from 34% year ago)… …but
© 2013 WAN-IFRA Sources: Comscore
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
© 2013 WAN-IFRA Sources: Comscore
© 2013 WAN-IFRA
Advertising
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 © 2013 WAN-IFRA Sources: Zenith Optimedia
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.
© 2013 WAN-IFRA Sources: DMA, IAB, World Press Trends
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
© 2013 WAN-IFRA Sources: Advertising Association, Zenith Optimedia
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
© 2013 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
© 2013 WAN-IFRA
Fact: Newspapers’ share of digital revenues reflects their share of audience intensity.
© 2013 WAN-IFRA
Conclusions: 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 innovate in all aspects of their business
as they build their new digital world
© 2013 WAN-IFRA
Thank you!
Dean Roper
Director of Publications, WAN-IFRA
© 2013 WAN-IFRA www.wan-ifra.org