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The Future of Newspapers
 

The Future of Newspapers

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Keynotes by Dominique Delport

Keynotes by Dominique Delport
President HM France & UK
Global Managing Director Havas Media Group

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    The Future of Newspapers The Future of Newspapers Presentation Transcript

    • NEWSPAPERS : THE END… SERIOUSLY ? Dominique DELPORT Chairman Havas Media France & Havas Media UK Global Managing Director Havas Media Group
    • STOP THINKING NEWSPAPERS ARE DEAD
    • … ESPECIALLY THE JOURNALISTS! Source : Ross Dawson, futureexploitation.net
    • NEWSPAPER INDUSTRY FACING PROFOUND CHANGES DIGITALIZATION AND MONETIZATION CONTENT DIVERSIFICATION OF FUNDING SOURCES LOWER STRUCTURE COSTS FOCUS ON OFFER AND QUALITY CONTENT AUDIENCE & GLOBAL BRAND REBUILD SHAREHOLDING
    • 1BN+ PEOPLE INTERCONNECTED THROUGH SOCIAL & MOBILE PLATFORMS AUDIENCES NOW THE MEDIA YOUR READERS NOW THE MEDIA WE LIVE IN AN ORGANIC WORLD
    • WE ARE ALL IDENTIFIED BY OUR IP ADDRESS, GEOLOCATION AND REACHABLE 24/7 PER MILI-SEC GEOGRAPHY AND TIME ABOLISHED WE LIVE IN AN ORGANIC WORLD
    • VILLAGES ARE GLOBAL WE LIVE IN AN ORGANIC WORLD
    • CONTENT IS FLUID & CIRCULATES FREELY WE LIVE IN AN ORGANIC WORLD
    • 5 REASONS TO EXPECT A BETTER FUTURE
    • 01 THE RISE OF THE GLOBAL MIDDLE CLASS
    • MIDDLE CLASS PROJECTED GROWTH01 Source : OECD, Jana, 2013
    • EMERGING MARKETS HAVE IMPORTANT SPENDING BUDGET Source : OECD, Jana, 2013 01
    • RISE OF MIDDLE CLASS IN CONSUMPTION01 Source : OECD, 2013
    • CHINA UPPER MIDDLE CLASS CONSUMERS WILL TRANSFORM THE NATION ๏ China’s new middle class is divided into different generations, the most striking of which we call Generation 2 (G2) ๏ It comprised nearly 200 million consumers in 2012 and accounted for 15 percent of urban consumption and in ten years’ time, their share of urban consumer demand should more than double, to 35 percent 01 Source : The magnitude of China’s middle-class, McKinsey & Company, 2013
    • AFRICA’S GROWING MIDDLE CLASS ๏355 million (34% of the African population) in 2010 to 1.1 billion (42% of the African population) in 2060 ๏Today, Africa is the most dynamic continent with a mobile penetration rate of 100% 01 Source : Canback Global Income Distribution Database, Mckinsey Global Institute
    • AFRICA : MOBILE-FIRST CONTINENT IN 2020 Source : Courrier International, October 2013 ๏ According to World Bank, between 2000 and 2012, number of mobile phone subscriptions spent in Africa - 137 to nearly 650 million, as in USA and Europe ๏ Used mobile banking terminals or Internet access, promoting economic and agricultural development ๏ Orange Finance : 8m subscriptions ๏ Kenya : M-Pesa telecoms 14.6m active users in March 2012 (3 out of 5 Kenyans) with more than 650m transactions per month 01
    • 02 MOBILE FIRST
    • MOBILE
 1ST SCREEN TV 2ND SCREEN 02 Source : Millward Brown, 2014
    • freemium model : 10 free articles per month unlimited content : 7 for $99 per month Morning Briefing & Our Picks apps A handpicked feed of stories 02 NY TIMES NOW : 2 APRIL 2014 BECOME MOBILE FIRST NY TIMES OPINION : 4 JUNE 2014 Unlimited access to the NYT Opinion App + NYTO section on NYTimes.com 99¢ for the first 12 weeks & $1.50/week thereafter
    • ALL SOCIAL PLATFORMS BECOME MOBILE FIRST  02 Source : Comscore, * December 2013, Age 18+
    • ONLINE NEWSPAPER READERS GROWING RAPIDLY Differences in digital reach across the newspaper titles. Half of The Guardian’s and The DailyTelegraph readers are now based purely online whereas The Times has just 3% digital only reach thanks to its pay wall. DIGITAL 02 % who read print only % who read digital only Source : NRS PADD period July 2011 to June 2012 43% 54% 54% 81% 91% 91%
    • PRESS ONLINE : THE END OF GOOGLE DEPENDENCE 02 Source : Buzzfeed 2013
    • The Atlantic (U.S. magazine) doubles the size of its writing since 2009 and making money since 2010. In five years, through social, its online traffic jumped 80% with more than 25 million unique visitors per month without compromise quality of content. The reasons for successes : 02 PRESS ONLINE : THE END OF GOOGLE DEPENDENCE  ๏ recruit new talents ๏ work like a start-up, lean production ๏ know your audience ๏ mobile first ๏ use data and social media ๏ organize events and training ๏ develop brands ๏ create video content Source : The Atlantic president M. Scott Havens, SXSW 2013
    • 02 PRESS ONLINE : THE END OF GOOGLE DEPENDENCE  “It’s become very, very clear to me that digital trumps print, and that pure digital, without any legacy costs, massively trumps print.” David G. Bradley, the owner of the Atlantic Media Company Source : The Atlantic president M. Scott Havens, SXSW 2013
    • MAGAZINES : INCREASING POTENTIAL FOR REVENUE02 Source : Veronis Suhler Stevenson Communication Industry Forecast 25th Edition, 2011-2015 Digital and mobile revenues include spending on the title-related online and mobile extensions of print publications. It includes advertising and content spending, such as subscriptions, apps and online reviews.
    • SERVICE DELIVERED - BEYOND PAPER02 TV GUIDE MOVED TO DIGITAL PROGRAM SCHEDULE TVGuide.com attracts some 16.5 million monthly visitors and the smartphone and tablet apps reach about 2.5 million users Source : CBS 2013
    • 02 SERVICE DELIVERED - BEYOND PAPER VIRTUAL TV ZAPPER Source : TV GUIDE 2013
    • 02 INCOME SOURCES EVOLVING FREEMIUM A combination of free and premium contents. The most popular business model on Internet. Several varieties with a similar base : a limited part and a full access part, fees for access to both. SUBSCRIPTION Provides access to an offer or benefit (yearly/monthly) with regular payment period. This system has been used by press and mobiles but today is increasingly digital. MICROTRANSACTION The principle : payments are small sums to promote repetition and impulse buying. Very common in image/ringtone sales and many apps/mobile games. CLOUD COMPUTING The principle : the customer pays for time spent or number of logins, the amount of downloads, e.g pay per minute with Skype credit or Paypal fee for each transaction. AFFILIATION A type of performance-based fidelity marketing where a business rewards one or more affiliates for each visitor or customer that participates. ONLINE ADVERTISING First source of income for websites. But increasingly difficult to make it a single source of income, because it requires very high traffic.
    • 02 TRANSITION FROM A NEWSPAPER TO A DIGITAL PUBLICATION Source : NYT report, March 2014
    • 02 NYT PAYWALL SUCCESS Total revenues increased 2.6 percent in the first quarter of 2014, with advertising revenues up 3.4 percent and circulation revenues up 2.1 percent. The Company added more net digital subscribers in the first quarter of 2014 than in any quarter in 2013. The total number of paid digital-only subscribers at the end of the first quarter was approximately 799,000, an increase of 39,000 compared with the end of the fourth quarter of 2013. Source : NYT investors, April 2014
    • TRUST IN DIGITAL : PRESS ONLINE INCREASE La Presse newspaper (Canada) launched La Presse+, a free iPad app $40-million bet on a new tablet platform that it hopes will replace its newspaper over three years. 02
    • 03 MOST POPULAR WRITING
    • NEW SUPPORT, NEW CONTENT : ADJUSTING THE EDITORIAL PURPOSE LONG KNOW-HOW POLLSTER & EDITOR THINK VIDEO YOUR REPORTERS ARE YOUR MEDIA YOUR READERS HAVE TALENT EVENT YOUR PROGRAMS 03
    • DEVELOPING STRONG AND SINGULAR EDITORIALS : DIFFERENT KNOW-HOW03 CREATE NOVELIZATION WITH SOLID AND CONSISTENT CONTENT
    • CONFIRMING EDITORIAL AMBITIONS : POLLSTER & LAYOUT PERSON03
    • THINK VIDEO03
    • YOUR REPORTERS ARE YOUR MEDIA03 READER SUBSCRIPTIONS TO SPECIFIC JOURNALISTSJOURNALIST AS THE BRAND
    • 03 YOUR REPORTERS ARE YOUR MEDIA
    • A NEW GENERATION OF EXPERTS TO EXPAND YOUR ECOSYSTEM 03 YOUR READERS HAVE TALENT
    • 03 400 bloggers - correspondents are paid by click YOUR READERS HAVE TALENT Source : Forbes, 2014
    • 03 YOUR READERS HAVE TALENT Source : Forbes, 2014
    • EVENT YOUR PROGRAMS03 CULTURE SECTION IN THE UK'S SUNDAY TIMES PROMOTED BY PULLING TOGETHER SIX ICONIC MOMENTS CAPTURED IN SINGLE SHOT MOMENTS IN 50 SECONDS
    • 04 DATA EXPLOITATION DRIVING BUSINESS
    • WE LIVE IN A BIG DATA WORLD04
    • 04 WE LIVE IN A BIG DATA WORLD
    • WE LIVE IN AN ALGORITHMS WORLD04 MARKETING
    • THE GUARDIAN, 1ST worldwide media who have launched data-journalism in 2009 04 NEW WRITING FORMS : THE DATA-JOURNALISM MAKING SENSE OF DATA - ENGAGE READERS (CROWDSOURCING)
    • STAGING INFORMATION TO HIGHLIGHT KEY UNDERSTANDING 04 NEW WRITING FORMS : THE DATA-VISUALIZATION
    • 04 NEW WRITING FORMS : THE DATA-VISUALIZATION #MH360
    • 14 segments 25% with ratio > 140% 04 NEW MARKETING OPPORTUNITY : KNOWLEDGE OF FINE-GRAINED TARGET Selected Internet user profile characteristics reveal a very strong correlation with the sales conversion rate. This able marketers to build highly differentiated Web user segments, with best performance. Source : Mckinsey, 2013
    • 05 INNOVATION & AGILITY
    • 05 A MAGAZINE BECOMES AN ECOSYSTEM MEDIA THINK MILLENNIALS
    • 05 YOUTH UNEMPLOYMENT IN SEVERAL EUROPEAN ECONOMIES IS DISTURBINGLY HIGH, WITH RATES OF UP TO 40% : WHOSE NEWSPAPER IS HELPING THEM ? Source : Eurostat 2013 THINK MILLENNIALS EUROPEAN YOUTH UNEMPLOYMENT
    • INNOVATE TO SIMPLIFY THEIR READING APPLICATION FOR CONVERTING AN ARTICLE INTO AUDIO APPLICATION FOR CONVERTING AN ARTICLE INTO VIDEO IN 5 SECONDS 05
    • USE HIGH TECHNOLOGIES TO SHARE INSTANT INFORMATION05
    • PERSONALIZE & SOCIALIZE05
    • PERSONALIZE THE PAPER VERSION Meganews, a newspaper vending machine with Internet access, prints in real-time a copy of the magazine you have selected. You purchase your magazine through screens on the kiosk and pay by credit card. It only takes two minutes from making your purchase until a freshly printed magazine drops down the hatch. Consumers can choose from over 200 magazines and newspapers - reduces publishing and distribution costs. (Sweden) 05 SELECT, SET, PRINT
    • PERSONALIZE YOUR OWN NEWSPAPER05 FROM WEB TO PAPER PaperLater lets you save the good stuff from around the web and enjoy it in a newspaper made just for you. When you find yourself on something you’d prefer to read in print, just press the ‘Save for PaperLater’ button in your browser. When you’ve got enough articles, hit print and we’ll automatically layout, print and ship you a newspaper. It’ll be on your doorstep in a few days. It’s quick and easy and only £4.99. (UK)
    • NEWSPAPERS ARE USEFUL05 UMBRELLA NEWSPAPER It rains a lot in Ecuador and that could be a problem even for EXTRA newspaper, during rainy season we printed a special edition that comes with a plastic film on its cover making it waterproof. Compared to last year, same season, circulation increased 12%. MOSQUITO REPELLENT NEWSPAPER Mawbima is one of Sri Lanka’s most popular newspapers has created the Mawbima Mosquito Repellent Paper to fight against Dengue, printed using an ink containing a bug-repelling ingredient. Even with a bigger print run, the paper sold out by 10am - a sales increase of 30% and the newspaper's readership increased by 300,000.
    • FOR ALL : UPGRADING WHAT WORKS05 ! DIGITAL NEWSPAPER HOLDER PIMPING A LO-FI SUPPORT WITH TECHNOLOGY - SHOWING PEOPLE THE VALUE OF REAL-TIME NEWS SERVICES WHILE READING THE PRINTED EDITION (GERMANY)
    • 05 FOR ALL : UPGRADING WHAT WORKS
    • Source : Ross Dawson, futureexploitation.net
    • ENDING OF THE DECLINIST