World Press Trends 64th World Newspaper Congress and 19th World Editors Forum

1. World Press Trends
Larry Kilman
Deputy CEO, Executive
Director of
Communications and
Public Affairs, WAN-IFRA

2. World Press Trends
World Newspaper Congress, Kiev, 3 September 2012
Larry Kilman
Deputy CEO, WAN-IFRA
larry.kilman@wan-ifra.org
www.wan-ifra.org © 2012 WAN-IFRA

3. 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

4. World Press Trends:
A changing industry requires a more dynamic
and usable reference guide.
WPT collects: A moving target:
 Circulation from more than  Rapidly changing industry
150 countries
 Changes in data collection and
 Advertising revenues from definition
more than 90 countries
 Dependent on local resources
 Data on more than 90% of and international data suppliers.
global newspaper industry
turnover
© 2012 WAN-IFRA

5. Audience
© 2012 WAN-IFRA

6. 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

7. 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
Sources: World Press Trends © 2012 WAN-IFRA

8. 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
Sources: World Press Trends © 2012 WAN-IFRA

9. 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
Sources: World Press Trends © 2012 WAN-IFRA

10. Newspaper circulation
The unsung foundation of our business
 Over 2.5 billion people  Circulation still accounts for
worldwide read a printed nearly 50% of newspaper
newspaper
revenues and remains the
 This figure rises significantly if barometer of the industry’s
Sunday and weekly newspapers health
are included
 It is vital that as publishers
focus on their digital ambitions
 Circulation declines are more
they continue to invest in the
due to decline in purchase
frequency, than in declines in content and marketing of their
overall total readership print products
Sources: World Press Trends © 2012 WAN-IFRA

11. Over 40%
of the world’s digital audience
read a newspaper online
(up from 34% year ago)…
…but
Sources: Comscore © 2012 WAN-IFRA

12. Digital newspaper audiences still generate interest
rather than intensity
USA Brazil Germany Russia France India
% of web users who
66.9 39.1 43.2 33.0 43.5 35.4
ever visit a paper site
% of daily users who
17.1 8.5 11.7 7.4 11.6 9.9
visit a paper site daily
% of pages viewed
1.1 0.6 1.9 0.5 1.6 2.1
per visitor
 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)
Sources: Comscore © 2012 WAN-IFRA

13. Advertising
© 2012 WAN-IFRA

14. 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
Sources: Zenith Optimedia © 2012 WAN-IFRA

15. Search still dominates
Search accounts for
58% of digital
and 13% of all
advertising expenditure.
 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
Sources: DMA, IAB, World Press Trends © 2012 WAN-IFRA

16. Digital is having only a small impact on newspaper
revenues and share of media spend
2007
 Combined value $2.1 billion
 2.2% of all press advertising
2011
 2.8% of digital total
$128B  6.6% of non-search digital
$96B 2011
2007
Newspapers
$76B
$42B
Digital
Sources: Advertising Association, Zenith Optimedia © 2012 WAN-IFRA

17. 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
© 2012 WAN-IFRA

18. 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
© 2012 WAN-IFRA

19. Fact: Newspapers’ share
of digital revenues
reflects their share of
audience intensity.
© 2012 WAN-IFRA

20. Tablets
and eReaders

21. eReaders
The 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)
© 2012 WAN-IFRA
Sources: Internet cuttings

22. 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

23. Conclusions
© 2012 WAN-IFRA

24. 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

25. Areas identified by participants to create the most
opportunities for revenue generation and
efficiencies (2012)
© 2012 WAN-IFRA

26. World Press Trends
World Newspaper Congress, Kiev, 3 September 2012
Larry Kilman
Deputy CEO, WAN-IFRA
larry.kilman@wan-ifra.org
www.wan-ifra.org © 2012 WAN-IFRA