wan ifra - larry kilman world press trends september 2012
TRANSCRIPT
World Press Trends
Larry Kilman
Deputy 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
© 2012 WAN-IFRAwww.wan-ifra.org
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
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 2007
Sources: 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 declineare slowing down
© 2012 WAN-IFRASources: 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
© 2012 WAN-IFRASources: 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
© 2012 WAN-IFRASources: 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
© 2012 WAN-IFRASources: World Press Trends
Over 40% of the world’s digital audience read a newspaper online
(up from 34% year ago)……but
© 2012 WAN-IFRASources: 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
© 2012 WAN-IFRASources: Comscore
© 2012 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© 2012 WAN-IFRASources: 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.
© 2012 WAN-IFRASources: 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
© 2012 WAN-IFRASources: Advertising Association, Zenith Optimedia
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
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
Fact: Newspapers’ share of digital revenues reflects their share of audience intensity.
© 2012 WAN-IFRA
Tablets
and eReaders
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
� 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 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
Conclusions
© 2012 WAN-IFRA
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
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
© 2012 WAN-IFRAwww.wan-ifra.org