VSS Communications Industry Forecast 2010-2014 Now with Data and Analysis by Both Revenue Stream...

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

2

Previous Edition Analysis

Forecast

The VSS Forecast has historically viewed Communications spending by four Revenue Streams

3

Revenue Stream Sectors

Marketing Services

Consumer End-User

Advertising

Marketing Services

Institutional End-User

Consumer End-User

Forecast

4

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

5

Segments within Revenue Streams

Advertising

Marketing Services


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

6

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

7

Industry Sectors within Communications

Forecast

Targeted Media

Marketing Media

Business &

Professional Info & Services

Entertainment and Leisure

Traditional Consumer Ad

Media

Education

& Training Media & Services

8

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 &




Media

Education


More extensive information on each of the industry groupings can be found in the appendix.

9

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

10

Targeted Media17.7%

Marketing Media

6.7%

Business &


15.9%


24.7%


Media13.6%

Education


21.3%

2009 Communications Industry Spending

Forecast

Advertising17.1%

Marketing Services

18.0%


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

11

Targeted Media19.0%

Marketing Media

5.5%

Business &


17.8%


25.3%


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%


46.1%

Consumer End-User

20.6%

12

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

13

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

14

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

15

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

16

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

17

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

18

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

19

Targeted Media

Marketing Media

Business &




Media

Education


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.

VSS Communications Industry Forecast 2010-2014 Now with Data and Analysis by Both Revenue Stream...

Documents

Transcript of VSS Communications Industry Forecast 2010-2014 Now with Data and Analysis by Both Revenue Stream...