vss communications industry forecast 2010-2014 now with data and analysis by both revenue stream...
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VSS Communications Industry Forecast 2010-2014
Now with Data and Analysis by Both Revenue Stream Sector
& Industry Sector
VSS Communications Industry Forecast 2010-2014
Now with Data and Analysis by Both Revenue Stream Sector
& Industry Sector
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Previous Edition Analysis
Forecast
The VSS Forecast has historically viewed Communications spending by four Revenue Streams
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Revenue Stream Sectors
Marketing Services
Consumer End-User
Advertising
Marketing Services
Institutional End-User
Consumer End-User
Forecast
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What is a Revenue Stream?
Revenue Stream: Broad-based, generic descriptions of different types of revenues that comprise the industry. E.g., Advertising and Marketing Services are commercially underwritten consumer and business media and end-user media is paid for by the person or company.
For example, one would think Videogames, a segment of the Entertainment & Leisure Media Industry Sector, would fall only into the Consumer End-User Revenue Stream. However, portions of Videogame spending (online & mobile gaming advertising, in-game advertising) fall into the Advertising Revenue Stream.
Similarly, portions of the Newspaper segment in the Traditional Consumer Advertising Media Industry Sector, has both Consumer End-User (which is paid for subscriptions and single copies) spending AND Advertising spending. Same goes for Consumer Magazines
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Segments within Revenue Streams
Advertising
Marketing Services
Institutional End-User
Consumer End-User
• Newspapers
• Broadcast television & radio
• Cable & satellite television
• Yellow pages
• Internet & mobile
• Consumer mags
• B-to-B mags
• TV programming, license fees & retransmission
• B-to-b trade shows & mag subscriptions
• Education & training
• Biz & professional information
• Biz & professional services• Direct marketing
• B2B promotions
• Consumer promotions
• Branded entertainment
• Outsourced custom pubs
• PR & word-of-mouth
• Cable & sat TV
• Consumer books
• Entertainment media
• Internet & mobile access & paid content
• Newspaper subs
• Magazines subs
Forecast
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Additional Perspective Was Needed…
Rapid changes in the media & information landscape has led VSS to incorporate an additional analysis of spending in the Communications Industry grouped by Industry Sectors
Because media owners, investors and top management require greater awareness of how their companies match up against their industry peers and other industry-specific spending patterns, VSS, for the 2010 Forecast, has added an entirely new and additional data perspective:
Spending by Industry Sectors
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Industry Sectors within Communications
Forecast
Targeted Media
Marketing Media
Business &
Professional Info & Services
Entertainment and Leisure
Traditional Consumer Ad
Media
Education
& Training Media & Services
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Segments within Industry Sectors• Business and Professional
Information• Business Information• Professional Information
• Business and Professional Services
• Business & Professional Processing Services
• Business & Professional Technology Services
• Consumer Promotion
• Business-to-Business Promotion
• Public Relations & Word-of-Mouth Marketing
•Broadcast Television• Newspaper Publishing
• Consumer Magazine Publishing
• Broadcast & Satellite Radio• Out-of-Home Media• Yellow Pages Directories
• Direct Marketing• Direct Mail• Branded
Entertainment• Outsourced
Custom Publishing• Pure-Play
Consumer Internet & Mobile Services
• Business-to-Business Media
• Subscription TV• Entertainment Media
• TV Programming• Home Video• Recorded Music• Videogames• Box Office
• Consumer Book Publishing
Forecast
• Education & Training Media & Services
• Not-For-Profit College Instructional Media
• K-12 Instructional Media
• For-Profit Educational Services
• Outsourced Corporate Training
Targeted Media
Marketing Media
Business &
Professional Info & Services
Entertainment and Leisure
Traditional Consumer Ad
Media
Education
& Training Media & Services
More extensive information on each of the industry groupings can be found in the appendix.
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Added perspective; greater depth and detail Total Communications Spending is on pace to increase 3.5% in 2010
and grow at a CAGR of 6.1% in 2009-2014 period to $1.416 trillion, fueled by measured economic growth, digital technology advances, institutional spending on Business Information & Services and consumer spending on Entertainment & Leisure Media
Traditional Consumer Advertising Media will continue to decline in 2010 and 2011 as brands shift to alternative advertising and marketing strategies
Business & Professional Information & Services will be fastest growing Industry Sector in 2009-2014 with 8.2% CAGR
Entertainment & Leisure Media to remain largest of six major Industry Sectors, growing to $353.87 billion in 2014
Institutional End-User to remain largest and fastest growing Revenue Stream, expanding at a CAGR of 7.3% to $661.48 Billion in 2014
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Targeted Media17.7%
Marketing Media
6.7%
Business &
Professional Info & Services
15.9%
Entertainment and Leisure
24.7%
Traditional Consumer Ad
Media13.6%
Education
& Training Media & Services
21.3%
2009 Communications Industry Spending
Forecast
Advertising17.1%
Marketing Services
18.0%
Institutional End-User
44.2%
Consumer End-User
20.6%
Forecast
Communications Spending by Industry Sector
Communications Spending by Revenue Stream
2009 Communications Industry Spending:
$1,055.2 billion
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Targeted Media19.0%
Marketing Media
5.5%
Business &
Professional Info & Services
17.8%
Entertainment and Leisure
25.3%
Traditional Consumer Ad
Media11.4%
Education &
Training Media & Services
22.3%
2014 Communications Industry Spending Forecast
Forecast Forecast
2014 Communications Industry Spending:
$1,399.0 billion
Communications Spending by Industry Sector
Communications Spending by Revenue Stream
Advertising16.8%
Marketing Services
16.3%
Institutional End-User
46.1%
Consumer End-User
20.6%
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Appendix (greater definition of Communications Industry Sectors)– Business and Professional Information & Services– Targeted Media– Marketing Media– Education and Training Media & Services– Entertainment and Leisure– Traditional Consumer Advertising Media– Examples of companies by Industry Sector
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Business & Professional Information
– Business Information• Marketing Information • Financial & Economic Information• Credit & Risk Information• General Industry News
– Professional Information• Legal & Regulatory Information• Scientific & Technical Information• Health & Life Sciences Information
Business & Professional
Information & Services
Business & Professional Services
– Business & Professional Processing Services
• Payroll & Human Resource Services• Financial Processing Services• Other Outsourcing Services
– Business & Professional Technology Services
• Institutional Internet Access• Wireless Data• SaaS & Licensed Software
Forecast
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Direct Marketing– Direct Mail– Telesales– Catalog– E-Mail– Direct Response Television– Other Direct Marketing
Branded Entertainment– Consumer Events– Paid Product Placement
Outsourced Custom Publishing
– Custom Magazines– Custom Newsletters– Custom E-Pubs– Custom Tabloids
Targeted Media
Pure-Play Consumer Internet & Mobile Services
– Pure-Play Internet Services• Pure-Play Internet Advertising• Pure-Play Internet Access• Pure-Play Paid Internet Content
– Pure-Play Mobile Services• Pure-Play Mobile Advertising• Pure-Play Mobile Access• Pure-Play Mobile Paid Content
Business-to-Business Media – Trade Shows, Seminars &
Conferences– Business-to-Business Magazines
• Advertising• Paid Circulation
– E-Media Advertising & Content
Forecast
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Consumer Promotion– Point of Purchase– Coupons– Promotional Licensing– Premiums– Loyalty Programs– Product Sampling– Games, Contests & Sweeps
Marketing Media
Business-to-Business Promotion
– Promotional Products– Travel & Incentive Marketing
Public Relations & Word-of-Mouth Marketing
– Public Relations– Word-of-Mouth Marketing
Forecast
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Education & Training Media & Services– Not-For-Profit College Instructional Media– K-12 Instructional Media– For-Profit Educational Services– Outsourced Corporate Training
Education & Training Media & ServicesForecast
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Subscription TV– Subscription & Content– Advertising– License Fees
Entertainment Media– TV Programming– Home Video– Videogames– Recorded Music– Box Office
Entertainment & Leisure
Consumer Book Publishing– New Books– Used Books– Audio Books– E-Books, Digital Content &
Advertising
Forecast
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Broadcast Television– Network & Local Station Advertising
• Network Advertising• National & Local Spot
– Online & Mobile Advertising & Content
– Retransmission Fees
Newspaper Publishing– Daily Newspapers
• Print Advertising• Print Circulation
– Weekly Newspapers– Digital Advertising & Content
Consumer Magazine Publishing– Advertising– Circulation– E-Media and Mobile Platforms
Traditional Consumer Advertising Media
Broadcast & Satellite Radio– Broadcast Radio
• Radio Stations• Radio Networks
– Satellite Radio– Online & Mobile Advertising &
Content
Yellow Pages Directories– Print Yellow Pages
• Telephone Company Publishers• Independent Competitive
Publishers– Internet Yellow Pages
Out-of-Home Media– Traditional Out-of-Home– Digital & Alternative Out-of-Home
Forecast
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Targeted Media
Marketing Media
Business &
Professional Info & Services
Entertainment and Leisure
Traditional Consumer Ad
Media
Education
& Training Media & Services
Examples of Companies by Industry Sector
Forecast
Please note, the VSS Forecast doesn’t not report or forecast any information regarding any specific company. The list above is solely for reference to ensure readers understand the composition of each Industry Sector.