World Press Trends 2014

© 2014 WAN-‐IFRA

World Press Trends 2014 The defini5ve guide to the global newspaper industry in numbers, trends and changes

Vincent Peyrègne @vincentpeyregne

© 2014 WAN-‐IFRA

We represent news media industry in !120 countries!

We represent more than

18,000 publica5ons

15,000 online sites 3,000 companies

80 associations!

Based in Paris, and Frankfurt, with subsidiaries in Singapore, India, USA!

© 2014 WAN-‐IFRA

The exponen5al growth and adop5on of consumer technologies drives new news media consump5on paSerns on digital and mobile, and disrupt tradi5onal adver5sing revenue models, and forces publishers to react and adjust their business fast.

WAN-‐IFRA works around the world with publishers, editors, chief technology officers, business execuFves, newspaper associaFons, suppliers, service providers and research centres to defend and promote press freedom, and helps independent news publishing companies to succeed in their transformaFon process, increase their business, and perform their crucial role in open socieFes.

WE DO THIS BY DELIVERING

4 MAIN OFFERINGS

Support to innovaFon and

business development

Cri5clal business news and

strategic market insights

Advocacy for press

freedom and news literacy

Interna5onal networking and

knowledge sharing

3 4

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« ...The uncertain is the unknown, and the unknown is the future, and you cannot predict the future.

But the unfamiliar? You can learn to operate with that. »

@jxpaton

© 2014 WAN-‐IFRA

WPT Custom Reports

WPT Annual Report

WPT Data is Available through

www.wptdatabase.org !

Markets & Revenues

CirculaFon & Reach

Media ConsumpFon

AdverFsing

© 2014 WAN-‐IFRA

Our Data Partners!

Ipsos

RAM

PWC

80 Local AssociaFons

ComScore

ZenithOpFmedia

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Global Newspaper Revenues

© 2014 WAN-‐IFRA

The Newspaper Industry Value

102bn Global consumer and educaFonal book

publishing revenues

87bn Global filmed entertainment

revenues

50bn Global music revenues

163bn Global newspaper

revenues

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Global Newspaper Revenue GeneraFon 2013

$78 bn CIRCULATION REVENUE

$85 bn ADVERTISING REVENUE

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Global Newspaper Industry Revenue 2013 development 2009 to 2013 (US$bn)

Source: Zenith Op0media and PWC Global Entertainment & Media Outlook

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Global Newspaper Revenue GeneraFon 2009 – 2013 and 2013-‐2017 (est.)

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

200000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

DIGITAL ADVERTISING PRINT ADVERTISING DIGITAL CIRCULATION PRINT CIRCULATION

Print still accounts for

93% of newspaper revenues!

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Digital vs Print ad revenue poten5al

© 2014 WAN-‐IFRA

Regional Newspaper Industry Revenues 2013 (in %)

© 2014 WAN-‐IFRA Source: NAA, NSK, PwC, BDZV, World Press Trends

CirculaFon and AdverFsing Revenues in Major Na5onal Markets (est. 2013)

© 2014 WAN-‐IFRA

Ads, 81%

Circ.. 16%

Other, 3%

2007

Newspaper Ads 46%

Digital Ads 9%

Niche/Non-‐Daily

8%

CirculaFon 29%

New/Other $ 8%

2013

Source : NAA

Changing Revenue Stream US market 2007-‐2013

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A pa`ern of DisrupFon New revenue streams

ALTERNATIVE DISRUPTIVE DIGITAL REVENUES

Source: NAA, Deseret Media

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Mobile interference

Mobile interference

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Source: eMarketer

US Net Mobile Ad Revenues by Company 2011-14

$0bn

$1bn

$2bn

$3bn

$4bn

$5bn

$6bn

$7bn

2011 2012 2013 2014

Google

Pandora

Twitter

Milennial Media

Apple (iAd)

Facebook

Other

Adjust your business fast Mobile Interference

© 2014 WAN-‐IFRA

Global Newspaper

CirculaFon and Reach

© 2014 WAN-‐IFRA

2.5bn!49% of all adults!

read print newspapers!

0.8bn!46% of all internet

users read newspapers !

in digital formats!

GLOBAL !READERSHIP!

Global Reach 2013

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Global Daily Print Newspaper CirculaFon 2009 – 2013

Global daily paid and free newspaper unit circulaFon in million !

548! 537! 527! 522! 534!

0!

100!

200!

300!

400!

500!

600!

2009! 2010! 2011! 2012! 2013!

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Daily Newspaper CirculaFon by Region 2009 – 2013

Asia and Latin America

continue to enjoy growth

in print circulation!

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Global Digital Newspaper CirculaFon 2009 – 2013

Global daily digital newspaper paid circulaFon in millions !

80! 178!

543!

1093!

1753!

2009! 2010! 2011! 2012! 2013!

Audiences increasingly ready to pay for content!

+60%

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Source: ComScore!

Global Digital News Audiences 2013-‐2014 (est)

660!812!

2013 2014

Global digital news

audiences grow by 23%!

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Global Newspaper

Media ConsumpFon

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Mobile Usage ConFnues to Rise Rapidly... Mobile usage as % of Web Usage, by Region, May 2014

Source: KPCB, StatCounter, 5/14.

Mobile represents 25% of total web Usage vs. 14% in

2013

% of P

age View

s com

ing from

mob

ile devices

© 2014 WAN-‐IFRA

Time Spent in Media vs. of AdverFsing Spending USA 2013

. Source: KPCB/ Source: Adver5sing spend based on IAB data for full year 2013. Print includes newspaper and magazine. $30B+ opportunity calculated assuming Internet and Mobile ad spend share equal their respec5ve 5me spent share. Time spent share data based on eMarketer 7/13 (adjusted to exclude outdoors / classified media spend). Arrows denote Y/Y shim in percent share

Time spent Ad spent

Revenue changes

increasingly mirror the shics in

consumer 5me

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Mobile Drives News ConsumpFon Devices Used to Access News in Past Week

29%

22%

35%

25% 24%

43%

28%

23% 19%

16%

10% 13% 14%

11%

25%

16% 14%

6%

U.K. Germany Spain Italy France Denmark U.S. Brazil Japan

Smartphone

Tablet

Source: Reuters Ins5tute Digital News Report 2013

© 2014 WAN-‐IFRA

Mon

thly

Exa

byte

s

Mobile Video

Consumer trends …video drives mobile data traffic 2010–2018

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Apps are driving mobile usage 2013-‐2014 (US market)

Source : comScore Media Metrix June 2013-‐June 2014

© 2014 WAN-‐IFRA Source: Comscore

0 5 10 15 20 25 30 35 40 45 50

Monthly Unique Visitors

Average Daily Visitors

Total Visits Total Pages Viewed

Total Minutes

42,48

12,77

5,68

0,79 1,10

46,45

11,77 5,82

0,79 1,03

2013 2014

Global Digital News Audiences 2013-‐2014 (est)

biggest challenge for publishers con5nues to be how to increase the engagement

© 2014 WAN-‐IFRA

Global Newspaper

AdverFsing trends

© 2014 WAN-‐IFRA

Newspaper Print AdverFsing Revenues 2009 – 2013

80bn!

70bn!

90bn!

100bn!

2009

97,439!

2010 2011 2012 2013

US$ million at current prices!

84,694!89,866!94,564!96,484!

13% decrease

over 5 years!

© 2014 WAN-‐IFRA

Newspaper Digital AdverFsing Revenues 2009 – 2013

Source: PwC Global Entertainment & Media Outlook

7bn!

6bn!

8bn!

9bn!

2009

5,722m!

2010 2011 2012 2013

US$ million at current prices!

8,452m!7,637m!7,017m!6,406m!

47% increase

over 5 years!

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Newspaper AdverFsing by Region 2009 – 2013

Latin America continues

healthy growth of advertising in the World Cup

year !

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Global Internet AdverFsing 2009 – 2013

Source: PwC Global Entertainment & Media Outlook

GOOGLE AD REVENUE >77%

OF ALL SEARCH $

AND 38% OF GLOBAL INTERNET AD $

0

10000

20000

30000

40000

50000

60000

70000

80000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

internet classified display internet internet video internet search

© 2014 WAN-‐IFRA

Global AdverFsing Share Share of adspend by medium (%) 2013

Source: ZenithOpFmedia

© 2014 WAN-‐IFRA

Global AdverFsing forecast 2008 – 2017 (est.)

Source: ZenithOpFmedia and PwC Global Entertainment & Media Outlook

0

50000

100000

150000

200000

250000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

CONSUMER MAGAZINE

CINEMA

INTERNET : WIRED AND MOBILE

NEWSPAPER PUBLISHING

OUT-‐OF-‐HOME

RADIO

TELEVISION

© 2014 WAN-‐IFRA

AdverFsing Trends 2008 -‐ 2013

Mobile and video are the main drivers of the global

ad spend growth!

© 2014 WAN-‐IFRA

PRINT REACH AND REVENUES

534 million copies (up 2% vs. 2012) 2.5 billion readers

in print (stable vs. 2012) Print adverFsing 13% decrease over 5 years and 6%

decrease over the last year.

GLOBAL REVENUE

$163 billion global revenue

(stable vs. 2012)

DIGITAL REACH

800,000 on digital (Up 23%

compared to 2012 )

Combined print-‐online audience

is huge

DIGITAL BUSINESS MODEL

$1,7 billion circulaFon revenue

(up 60% vs. 2012)

$8,5 billion adverFsing revenue (up 11% vs. 2012)

© 2014 WAN-‐IFRA

TRADITIONAL PRINT §  Realign the Ad vs. Consumer ra5o §  Niche publica5ons §  Rely on your margin to build the

future business model DIGITAL §  Paid content as well as adver5sing §  Mobile, social, online video, search §  The industry’s center of gravity

slowly shims from subscriber growth towards mone5za5on.

§  Sales are increasingly moving from page-‐views to chunks of 5me

not print or digital first, AUDIENCE first to build mul5 plarorm revenue stream

NON-‐TRADITIONAL REVENUE §  Personal Informa5on Management

Services §  Digital agency/marke5ng services §  Event marke5ng §  E-‐Commerce/transac5ons §  Direct Marke5ng

THE BIG ARE GETTING BIGGER §  The world’s largest media owners

are gesng a bigger share of global revenue.

§  The top 30 companies increased their revenues by 8,2%, well ahead of the 3,7% growth in global ad expenditure in 2013 (Zenith Op5media

© 2014 WAN-‐IFRA

ConvenFonal «rules» of business do not apply anymore in strategy, marke5ng and innova5on

Five likely founda5ons for failure

Focus on only one strategic « discipline » is not anymore the graal 1 …. Instead, rely on all three “generic” disciplines

at once : low cost, product innova5on, customer in5macy

2 Transfer of commercial model from print / web to mobile

…. tradi5onal adver5sing models will not fund the long term growth of news. Audience of newspapers is huge and an asset to harness.

5 OrganisaFon is first, audience is second …. Successful media companies put audience first, and place organisa5on second

3 Copying print form (both on content and adver5sing)

…. Video drives mobile growth and engagement of young genera5ons, na5ve ad is the new nom, etc.

4 Neglect your print business …. Vote for a dual transforma5on process : protect the margin of print and develop paid online content + diversify to non-‐news-‐related digital business-‐fields

© 2014 WAN-‐IFRA

Five likely founda5ons for success

Address the revenue shic Realign the Ad vs. Consumer ra5o

Defend your rights in the digital age. CollecFvely 5 ….Independent news publishers can only grow within a

fair regula5on framework. Think what net neutrality, copyright, right to be forgoSen mean to your mission.

CMOs and CIOs to start forging strategic partnerships 2 …. to turn new technologies into profits and growth,

marke5ng and IT will need to change how they work—and how they work together.

Build on your huge audience to embrace disrupFve revenues 1 …..personal Informa5on Management Services could

be worth £16.5 billion for UK only.

Build on Engagement and use real user insights to drive 3

….enabling interac5on on every possible level, sharing mechanisms, maximizing on context. Data is increasingly driving newsrooms. Business will follow

4 Learn from innovaFon and start-‐ups

…. Seek innova5on through rapid-‐fire, low-‐cost experimenta5on on popular plarorms with industry wide collabora5ve projects.

© 2014 WAN-‐IFRA

With our publica5ons, reports, we deliver cri5cal business news on new consump5on paSers, how business models evolve, benchmark best cases, iden5fy new trends, and understand how to operate with the unfamiliar..

WNPF and blogs, Business and technology trends, Shaping the Future of Newspaper, ExecuFve programs, World Press Trends

NEWS INSIGHTS

NETWORKING KNOWLEDGE SHARING

« No man is an island. No one stands alone ». We encourage community engagement by providing the right plarorms at the right place for the right people at the right scale : global, regional, local.

World Publishing Expo, World Newspaper Congress, World Editors Forum, World Printers Forum, DMx Conferences, Regional commi`ees, NaFonals Club, SMBs Club, Media InnovaFon Map

INNOVATION BUSINESS

DEVELOPMENT

ConsulFng and advisory services, Media InnovaFon Hub, Global Alliance for Research and InnovaFon, Standards semng

Our advisory service provides strategic and opera5onal support to help news businesses transform their model. The media Innova5on Hub helps developing/acquiring tools and find news publishers with similar goals and needs to collaborate on poten5al innova5on projects

ADVOCACY COLLECTIVE SUPPORT

Everything we do is because we believe that freedom of expression is a fundamental right, a touchstone of all our freedoms, and press freedom enhanced by solid independent news publishing companies as one of its fundamental pillars.

Press Freedom, Protest and Fact finding mission, Public affairs and Media Policiy, 3 may , News Literacy and Youth engagement, Media Development.

© 2014 WAN-‐IFRA

Focus areas 2014-‐2015

InnnovaFon MEDIA INNOVATION MAP GLOBAL ALLIANCE FOR R&D

Advocacy and knowledge sharing WORLD MEDIA POLICY FORUM

© 2014 WAN-‐IFRA

The Media InnovaFon Hub is a change accelerator, an internaFonal alliance of innovaFon pracFFoners, research and innovaFon centres, and emerging technology providers powered by Wan-‐Ifra.

INNOVATION

Media InnovaFon Map

Our central point Connect partners of the digital innova5on ecosystem. Encourage experience sharing, provide team up opportuni5es with a central business plarorm for publishers, suppliers, start ups, innovators, developers, tech centres

© 2014 WAN-‐IFRA

Media InnovaFon MAP THE CORE OF THE PLATFORM

PROFILE ID

SKILLS

CATEGORY

FUTURE PROJECTS

PRODUCTS SERVICES

HOOK UP

© 2014 WAN-‐IFRA

The Global Alliance for research and InnovaFon is One of the three central projects of the Media Innova5on Hub. It aims to facilitate the access of news publishers and suppliers with growth poten5al to pre compe55ve Research and Innova5on programs, including the EU “Horizon 2020” framework program and other na5onal R&D calls. INNOVATION

Global Alliance for RESEARCH AND INNOVATION

Our central point Encourage R&D collaboraFve projects between publishers / suppliers and research centres, academic tech clusters around the world

© 2014 WAN-‐IFRA

How do publishers around the world engage with the growing number of corporate, media policy and pressing global regulatory issues. Do they share a common understanding on digital governance and strategic topics like copyright and related rights, net neutraity, privacy and data protection, fair competition in the digital market, environment…?

ADVOCACY KNOWLEDGE SHARING

World Media Policy Forum

Our central point Provide a plarorm, where business professionals, engaged with internet policy and digital governance, representa5ves from crea5ve and content industries opera5ng in digital media, can share a common understanding on cri5cal global media policy issues. This means ensuring that these groups are well resourced, well connected. We aim to introduce crea5ve thinking and ideas with our Forums and knowledge sharing plarorms

© 2014 WAN-‐IFRA www.wan-ifra.org

WORLD PRESS TRENDS APPENDIX (INTERNET & SMARTPHONE)

NEW DIRECTIONS LIVING VALUES

WAN-‐IFRA is the trusted and reliable global partner for the news media industry at the forefront of press freedom, quality journalism, global industry issues, and innova5ve and sustainable business and technology models. WAN-‐IFRA defends and promotes press freedom, and helps independent news publishing companies to succeed in their transforma5on process, increase their business, and perform their crucial role in open socie5es.

© 2014 WAN-‐IFRA

Source: United Na5ons / Interna5onal Telecommunica5ons Union, US Census Bureau. China Internet user data from CNNIC (12/2013). Iran Internet user data from KPCB es5mates per data from Islamic Republic News Agency, ci5ng data released by the Na5onal Internet Development Center.

Established ‘Big’ Internet Markets China / USA / Japan / Brazil / Russia

+7% Growth in 2013 vs. 8% Y/Y = Slowing

© 2014 WAN-‐IFRA Source: United Na5ons / Interna5onal Telecommunica5ons Union, US Census Bureau. Indonesia Internet user data from APJII (1/2014)..

‘Big’ Internet Markets India / Indonesia / Nigeria / Mexico / Philippines +20% Growth in 2013 = Strong, Material Penetra5on Upside

© 2014 WAN-‐IFRA Source: Informa. Note: Japan data per Gartner, Morgan Stanley Research, and KPCB es5mates.

Established ‘Big’ Smartphone Markets USA / Japan / UK / Germany / Korea +17% Growth in 2013 = Slowing, Well Past 50% Penetra5on

© 2014 WAN-‐IFRA Source: Informa.

Developing ‘Big’ Smartphone Markets China / India / Brazil / Indonesia / Russia +32% Growth in 2013 = Strong, Material Penetra5on Upside Remains

© 2014 WAN-‐IFRA

THANK YOU FOR YOUR ATTENTION

Vincent Peyrègne CEO Wan-‐Ifra vincent.peyregne@wan-‐ifra.org @vincentpeyregne

World Press Trends 2014

Data & Analytics

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