World Press Trends- Larry Kilman

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

[email protected]

© 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 decline are 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


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

© 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

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 print

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

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

[email protected]

© 2012 WAN-IFRAwww.wan-ifra.org

World Press Trends- Larry Kilman

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