Communications Industry Spending & Consumption Trends...Business Information Services Business...
Transcript of Communications Industry Spending & Consumption Trends...Business Information Services Business...
Communications Industry Communications Industry Spending & Consumption TrendsSpending & Consumption Trends
John Suhler
Overview of VSS Verticals thatOverview of VSS Verticals that comprise the
VSS Communications Industryy
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Information Education
Communications Industry Verticals
Information Education Professional Information & Services Business Information Services Business Services
K-12 Materials and Services College Materials and Services For Profit Schools
Marketing Services
Corporate Training
Targeted Media Promotion Agencies Custom Publishing PR and Word-of-Mouth
Internet (Search & Advertising) Mobile Advertising and Content Digital Out-of-Home Subscription TV (Cable &
Direct Marketing Tradeshows and Events
Entertainment Traditional Media
Satellite Television) Advertising B2B Magazines
Newspapers TV Radio Yellow Pages Consumer Magazines
Film & TV Content Movie Theaters Music Videogames Cable & Satellite Television
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Consumer Magazines Cable & Satellite Television
I f ti Ed ti
Representative Companies Comprising VSS Verticals
Information Education
Marketing Services Targeted Media
Entertainment Traditional Media
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I f ti Ed ti
Industry Spending by Vertical
Information Education
$168$249$200
$300
($ Millions)
$224$311
$200
$300
$400($ Millions)
Marketing Services Targeted Media
$113$168
$0
$100
2004 2009 2014
$165$224
$0
$100
2004 2009 2014
Industry Spending
$71 $71 $77$50
$100
($ Millions)
$152$187
$266
$100
$200
$300($ Millions)($ Millions) % of GDP
‘04 $879 7%‘09 $1,054 7%‘14 $1,416 8%
10 yr CAGR:
Entertainment Traditional Media
$02004 2009 2014
$02004 2009 2014
($ Milli )($ Milli )
COMM Industry:4.9%
GDP: 4.7%10 yr CAGR:
$176$143 $159
$100
$200($ Millions)
$203$261
$354
$100
$200
$300
$400($ Millions)
20% h
14% h
11% h
-1.0%
5
$02004 2009 2014$0
2004 2009 2014
share share share
Source: VSS Communications Industry Forecast 2010
Communications Industry yGrowth Trends
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Communications Spending vs. GDP
Industry-wide spending on communications has well outpaced GDP
Communications Industry Spending vs. Nominal GDP Index35 Year CAGRs
Industry wide spending on communications has well outpaced GDP– 2% incremental annual growth due to expanding platforms and increasing consumer engagement
Nominal GDP
Communications Industry Spending
Nominal GDP
Comms.Spending+8.4%
exed
to 1
00)
+6.5%
(inde
x
Time Spentwith00
) Time Spent with Consumer Media Per Person
Time Spent with Media Index
with Consumer
Media+0.5%
(inde
xed
to 1
0 Media Per Person
7Source: VSS Communications Industry Forecast 2010, VSS Communications Industry Historical Database 1975-2010
Time Spent with Consumer Media
Time Spent with Consumer Media: Hours per Person per Year
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Source: VSS Communications Industry Forecast 2010, VSS Communications Industry Historical Database 1975-2010
Time Spent Online
350
400
Time Spent Online with Consumer and Institutional Media
At H d S h l
Total Time Spent Online
Consumer Media
• Broadcast TV and Radio
• Cable & Satellite TV• Pure-play Internet*• Newspapers
250
300
350
per
Year
Time Spent Online 10.5% of Total Time
Spent with Media
Time Spent Online 4 0% f T t l Ti
At Work
At Home and School • Newspapers• Recorded Music• Out-of-Home• Consumer Magazines• Videogames• Consumer Books• Home Video and In-Flight Entertainment
• Pure-play Mobile
150
200
250
er P
erso
n p 4.0% of Total Time
Spent with Media
Pure play Mobile• Box Office• Yellow Pages• Educational Books
Institutional Media
50
100
Hou
rs p
e
• Professional & Business Information
• Training & For-Profit Education
• Business to Business:−Magazines−Tradeshows, Conferences &
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010E
Seminars−E-media
• Business-related:−E-mails, instant messaging and text messaging−Online and mobile search
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Source: VSS Communications Industry Forecast 2010
*Internet and mobile use of traditional media (such as downloaded music, newspaper websites or info alerts, e-books, cable modems, online video of TV programs and internet radio) was included in the traditional media segment, not in pure-play internet or mobile content. Pure-play internet and mobile services includes telecommunications access (such as DSL and dial-up, but not cable modems), pure-play content (such as eHarmony, GameSpy and MobiTV), and mobile instant messaging and e-mail alerts.
−B-to-B e-commerce and m-commerce
Spending on Pure-Play Internet and Mobile Advertising
Resilience in search spending and strong growth in video and social media offset
Pure-Play Internet and Mobile Advertising Spending($ billi )
Resilience in search spending and strong growth in video and social media offset declines in classifieds and display
$40.0
$45.0
$50.0
Pure-Play Internet Advertising
Pure-Play Internet and Mobile Advertising Spending($ billions)
$25.0
$30.0
$35.0
$Pure-Play Mobile Advertising
Total Pure-Play Internet and Mobile Advertising
$10.0
$15.0
$20.0
$0.0
$5.0
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Source: VSS Communications Industry Forecast 2010, VSS Communications Industry Historical Database 1975-2010
Consumer Media Spending & Industry Spend as a % of Disposable Income
Consumer end user media spending per household has grown rapidly since 1975
Consumer Media Spending per Household and as % of Disposable Income
Consumer end-user media spending per household has grown rapidly since 1975– Consumer media spending now represents approximately 2% of disposable income
$2,000
$2,400
2.0%
2.3%
(
Consumer Media Spending as a % of Disposable Income
--------
$1,200
$1,600
1.4%
1.7%
er h
ouse
hold
)(%
of disposab
Doubled in 35 years
$800 1.1%
($ s
pent
pe
ble income)
Consumer Media Spending per Household ($)
--------10x bigger in 2010 than it
was in 1975
$0
$400
1975 1980 1985 1990 1995 2000 2005 2010E0.5%
0.8%as 9 5
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Source: VSS Communications Industry Forecast 2010, VSS Communications Industry Historical Database 1975-2010
Communications Spending by Industry
Traditional Consumer Advertising has lost substantial market share
Total Communications Spending by Industry
Traditional Consumer Advertising has lost substantial market share– Both Entertainment & BIS have expanded, while Education & Training has contracted as a % of total
($ millions)
$1,000,000
$1,200,000
p g y y
1975 2010% of Total:
29% 13% -55%
Industry Sectors
Entertainment & Leisure
Traditional Consumer Ad Media
Relative Change
$600,000
$800,000
31% 22%
11% 25%
-29%
227%Education & Training
Marketing
Business Information & Services
T d
$200,000
$400,0007% 16%
8% 6%
29%
228%
-25%
Targeted
$0
$ 00,000
1975 1980 1985 1990 1995 2000 2005 2010 E
14% 18% 128%
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Source: VSS Communications Industry Forecast 2010, VSS Communications Industry Historical Database 1975-2010
VSS Communications Industry Forecast
Please contact John Suhler at suhlerj@vss com Please contact John Suhler at [email protected] more information about this presentation and for access to our newsletter
More information about the VSS Communications Industry Forecast can be found at www.vss.com/forecast
To order your copy today, visit www.vss.com/orders
As an industry research leader for over 25 years, VSS publishes and distributes various forecasts
d t hi hli hti t d d j tiand reports highlighting trends and projections including the VSS Communications Industry Forecast and the VSS Communications Industry Historical Database
– This research informs not only investment decisions but enables performance monitoring of portfolio companies compared to peer groups
6 Industry Sectors 4 Revenue Streams 20 Segments 100 Sub Segments
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100 Sub-Segments 395 Charts and Graphs