World Press Trends

World Press Trends
CMPF Summer School 2013, Florence, 14 May 2013
Dean Roper
Director of Publications, WAN-IFRA
dean.roper@wan-ifra.org
© 2013 WAN-IFRAwww.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

 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

- 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

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

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

“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

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

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-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
© 2013 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
© 2013 WAN-IFRASources: 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-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.
© 2013 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
© 2013 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 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

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