Newspaper Media 2014


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Presentation by Caroline H. Little, President and CEO, Newspaper Association of America, USA, given at the 66th World Newspaper Congress on Wednesday, 11 June 2014, during the closing session explaining the current U.S. Media Market situation.

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  • Thank you and Good Afternoon everyone!
    [Other introductory remarks]
    I’d like to spend a few minutes giving you an overview of the current state of newspaper media in the united states.
  • The themes today include the changing nature of our revenue stream, our growing audiences, and we will take a peek at few examples of innovation.
  • Our revenue stream has changed dramatically in just the past five years.
    In 2007, advertising of all types accounted for over 81% of revenue, paid circulation 16%, and other forms of revenue 3%.
    Last year, the data show a very different picture. Circulation [including paid digital content] now makes up 29% of total newspaper media revenue, new revenue sources 8%, digital advertising 9%, niche publishing and direct marketing 8%, and newspaper print advertising 46%.
    This is a significant, dramatic change in financial profile of our business in just a few short years.
  • Last start with last year’s revenue highlights:
    Overall, total revenue for the multiplatform U.S. newspaper media business amounted to $37.59 billion in 2013.
    Circulation revenue for U.S. newspapers recorded a second consecutive year of growth, rising 3.7% to $10.87 billion.
    Revenue from overall digital channels — advertising, circulation, digital marketing services, and other — rose 5.8% and accounted for 12% of total industry revenue.
    Digital advertising revenue totaled $3.42 billion and accounted for 19% of advertising revenue; pure-play (digital only) advertising rose 14%. Mobile advertising revenue, though a small portion of overall total revenue (less than 1%), jumped 77%.
    The group of newly-developing and other revenue increased 5% overall.  The component of digital agency and marketing services, where newspaper media companies tap into interest among local businesses in the digital environment, increased 43%.
    Traditional advertising in print (daily & Sunday) represents less than half (46%) of total newspaper media revenue.
  • Let’s look now at some key facts about the growing audience for our digital products.
  • In particular, there has been a surge in Americans who use smartphones every day.
  • Mobile devices, both smartphones & tablets, are driving increased news consumption around the globe.
    Here, data from a Reuters study last year among 9 countries surveyed showed that Denmark leads for past week usage of smartphones to get news (43%) and tablets (25%).
  • In the U.S., a recent report from the Reynolds Institute for Journalism showed that consumers used more than one news app on average during the week.
    Men, especially those over age 55, tended to use more news apps than women, especially those women age 18 – 34.
  • The audience engaging with digital content offered by newspaper media reached a new all-time high, totaling 161 million adult unique visitors in March 2014. That count represents a 19% increase from the 135 million unique visitors measured by comScore in April 2013.
  • Among young adults (age 18-24) who were online in March, 71% consumed newspaper digital content, compared with 66% in April 2013. Those young adults who use only mobile devices (smartphones or tablets) to access newspaper digital content increased by 146% in that same period.
    By age, the net reach was highest among those age 25-34, at 84%. Both the 35-44 and 45-54 age groups show the identical net reach of 79%, while the reach among those aged 55 or older was 77%.
  • Respondents with metered systems were asked how many stories users were allowed to view for free before being asked to subscribe or pay. A little more than one in five (28 percent) allowed five or fewer free views in 30 days; fully 70 percent allowed 10 free views or less in 30 days. -
  • The printed newspaper continues to reach more than half of the U.S. adult population across 5 weekdays and more than 57% including Sunday.
    This is not an audience that will be abandoning newspapers anytime soon.
    In fact, advertising revenue generated by daily & Sunday newspapers in the U.S. totaled $17.3 billion in 2013.
  • The Pittsburgh Tribune-Review operates TribLive Radio, streaming audio broadcasts focused on professional sports teams in the market. With professional radio announcers and the sports writers from the newspaper, the programming includes doing multiple remotes, having broadcast live from the NFL Draft, Penguins games, Pirates playoff games and bowling events. The station’s Twitter account has more than 6,000 followers and revenues have gone up.
  • The Elkhart (Indiana) Truth, a family-owned daily newspaper, launched Flavor, a website for what to eat, drink and make. It features online video local chefs with cooking tips, a restaurant guide, interviews with local food producers, and an event calendar. Plans for June 2014 include a quarterly digital magazine for iPad, Kindle or Android tablets.
  • The Washington Post launched a partners program, which allows participating publications to offer The Post’s suite of digital products free as an added value for their paid subscribers. In turn, The Post is able to expand access to its digital content across desktop, mobile web sites and phone and tablet apps. The program now (May 2014) has 100 partners.
  • So what can we foresee?
    No one can predict with certainty how the media landscape will look.
    But we think there are plenty of opportunities for our industry to thrive & prosper.
    It is and will be a multiplaform world, where our revenue comes from [NEXT SLIDE]
  • To use an analogy from the world of quantum physics, we will be navigating through a media multiverse, where many different media universes-each with its own set of unique strengths & applications-compete to communicate with a variety of audiences, as consumers use of media keeps evolving to meet their everyday needs & desires.
    And it is a media multiverse for news. For example, 4 in 10 adults now use social media for news, but more than 80 percent of Americans say they also got news in the last week by going directly to a news organization in some manner—and that was consistent across generations.
    Even for the youngest adults, age 18-29, social media and the web in general have hardly replaced more traditional ways of getting the news. Nearly half of the youngest adults also read news in print during the last week, 3 in 4 watched news on television, and just over half listened to it on the radio. [Source:The Personal News Cycle report]
  • The realignment of the relationship between paid content and advertising will continue, with paid content taking up a more important part of the revenue stream, along with print vehicles such as niche publications, weeklies, and total market coverage products.
  • And the portfolio of digital products will drive a greater revenue share, as our growing audience delivers income and provides an engaged set of consumers attractive to marketers across platforms.
  • Finally, non-traditional sources will gain traction to support our journalistic endeavors, everything from digital services to local businesses, events for local audiences, e-commerce and direct marketing.
  • So that is a brief look at what we see as the landscape for newspaper media today [fill in more words here].
  • Newspaper Media 2014

    1. 1. Newspaper Media in 2014Newspaper Media in 2014Newspaper Media 2014Newspaper Media 2014
    3. 3. Newspaper Media: Changing Revenue StreamNewspaper Media: Changing Revenue Stream
    4. 4. 2013 Revenue Highlights: A $37.6 Billion Industry2013 Revenue Highlights: A $37.6 Billion Industry  Circulation revenue rose for 2nd consecutive year to $10.9 billion  Revenue from digital channels — advertising, circulation, digital marketing services, and other — rose 5.8% and accounted for 19% of all advertising revenue and 12% of total industry revenue.  Pure-play (digital only) advertising rose 14%.  Mobile advertising revenue jumped 77%.  Traditional advertising in print (daily & Sunday) represents less than half (46%) of total newspaper media revenue.
    5. 5. The Digital AudienceThe Digital Audience
    6. 6.  90% of American adults have a cell phone  63% of American adults have a smartphone  42% of American adults own a tablet computer  32% of American adults own an e-reader Explosive Growth in Mobile DevicesExplosive Growth in Mobile Devices Source: Pew Research, 2014
    7. 7. Mobile ManiaMobile Mania  75% of Americans bring their phones to the bathroom  67% of cell owners find themselves checking their phone for messages, alerts, or calls — even when they don’t notice their phone ringing or vibrating  44% of cell owners have slept with their phone next to their bed – not to miss any calls, text messages, or updates  Mobile now accounts for 20% of all media consumption time
    8. 8. Surge in SmartphonesSurge in Smartphones Source: Reynolds Journalism Institute, May 2014
    9. 9. Mobile Driving News ConsumptionMobile Driving News Consumption Source: Reuters Institute Digital News Report 2013
    10. 10. News Apps are Popular in U.S.News Apps are Popular in U.S. Avg. Number, News Apps Used Weekly  1.8 overall  Men 2.0, Women 1.5  By Age:  18 – 34: 1.6  35 – 54: 1.8  55 +: 1.9  Range:  M 55+: 2.2  W 18 – 34: 1.2
    11. 11. U.S. Newspaper Digital AudienceU.S. Newspaper Digital Audience  161 million UVs, March 2014  Grew 19% from April 2013  Mobile-Exclusive Digital Users:  More than 46 million UVs  Grew by 86%  Comprises 29% of all UVs
    12. 12. All Age Groups EngagedAll Age Groups Engaged Source: comScore
    13. 13. Survey: 70% Charge for Digital ContentSurvey: 70% Charge for Digital Content  And 60% of those who charge use a metered approach Source: Reynolds Journalism Institute, March 2014
    14. 14. The Print AudienceThe Print Audience
    15. 15. Print: Large Audience & RevenuePrint: Large Audience & Revenue 15  79 million read on average weekday  94 million read on average Sunday  137 million in the past week  60% college graduates read a print newspaper during an average week, 62% of those age 35 or older, and 64% of those with household income $250,000 or more.  More than half (53%) of adult Twitter users in a typical month read a newspaper in print during an average week.  $17.3 billion in advertising revenue 2013
    16. 16. Innovation: Wave of Digital Agency Services  Gannett: G/O Digital  McClatchy: impressLOCAL  Morris Communications: Main Street Digital  Gatehouse Media: Propel Marketing  Dallas Morning News: 508 Digital & Speakeasy
    17. 17. Innovation: Niche in Streaming Radio  Pittsburgh Tribune-Review, TribRadio  Sports talk radio focused on local teams  Broadcasts 9 a.m. to 8 p.m. every day  Live remote broadcasts  Professional announcers and newspaper sports writers  Launched in 2011, now profitable
    18. 18. Innovation: Local Cooking Site
    19. 19. Innovation: Content PartnersInnovation: Content Partners ProgramProgram
    20. 20. The Future: What Do We See?The Future: What Do We See?
    21. 21. Navigating Through the Media MultiverseNavigating Through the Media Multiverse
    22. 22.  TRADITIONAL PRINT  Realign the Ad vs. Consumer ratio  Niche publications Media Multiverse: Multi-Platform Revenue StreamMedia Multiverse: Multi-Platform Revenue Stream
    23. 23.  TRADITIONAL PRINT  Rebalance the Ad vs. Consumer ratio  Niche publications  DIGITAL  Paid content as well as advertising  Mobile, social, online video, search Media Multiverse: Multi-Platform Revenue StreamMedia Multiverse: Multi-Platform Revenue Stream
    24. 24.  TRADITIONAL PRINT  Rebalance the Ad vs. Consumer ratio  Niche publications  DIGITAL  Paid content as well as advertising  Mobile, social, online video, search  NON-TRADITIONAL REVENUE  Digital agency/marketing services  Event marketing  E-Commerce/transactions  Direct Marketing Media Multiverse: Multi-Platform Revenue StreamMedia Multiverse: Multi-Platform Revenue Stream
    25. 25. U.S. Newspaper Media TodayU.S. Newspaper Media Today 25
    26. 26. Newspaper Media in 2014Newspaper Media in 2014Newspaper Media 2014Newspaper Media 2014