world press trends

World Press Trends CMPF Summer School 2013, Florence, 14 May 2013

Dean Roper

Director of Publications, WAN-IFRA

[email protected]

© 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


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


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


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


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


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


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


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


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


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


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


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


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


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

print

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


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


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



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



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


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


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


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

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

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

world press trends

News & Politics

wanifra wanifra

wanifra members

digitalprint revenues

growth digital

digital offers

print readers

digital mean

digital bundles