Newspaper strategies for the future.

Searching for value in tomorrow’s publishing world.

Greece in context Newspaper readership
Newspaper readership Copy penetration and Average issue readership Japan Sweden Norway Canada Finland Denmark Singapore Germany Switzerland Austria Portugal Hong Kong Australia Netherlands Taiwan UK Ireland Greece New Zealand USA Czechia Hungary Korea Malaysia Belgium Brazil France Spain Indonesia Italy Ukraine Turkey Poland Thailand India Russia 0 10 20 Sources: World Press Trends, Zenith Optimedia, 30 40 50 60 70

Copy penetration Average issue readership

80

90

100

Greece in context Readers per copy
Greece Portugal Slovakia Croatia Ireland Spain Estonia Belgium France Latvia Poland Denmark Italy Germany Netherlands Slovenia Czech Republic Luxembourg Austria United Kingdom Switzerland Finland Sweden Norway

0

2

4

6

8

10

Greece in context Average circulation
0
Japan United Kingdom Austria Netherlands, Singapore Ireland France Italy Poland India Malaysia South Africa Australia Germany Belgium Canada Sweden Hungary Finland Denmark Turkey USA Norway Spain New Zealand Mexico Switzerland Indonesia Portugal Greece Argentina

100

200

300

400

500

600

700

Source: World Press Trends 2004

Greece in context Advertising expenditure
100 90 80 70 60 50 40 30 20 10 0
Greece Europe

Newspapers

Magazines

TV

Radio

Cinema

Outdoor

Internet

Greece in context Advertising expenditure - print
50 40 30 20 10 0
Greece Europe

Newspapers

Magazines

Greece in context Magazines share of advertising
Greece France Austria Netherla Germany Czech Europe Switzerla Portugal Finland Poland Latvia UK Italy Sweden Spain Belgium Estonia Lithuania Norway Hungary Denmark Ireland

0
Source: ZenithOptimedia

10

20

30

40

1000

Greece in context Newspaper revenue mix
United States

Advertising revenue per copy

Ireland

Luxembourg

500

Uruguay Portugal Norway Denmark France

Australia Canada

0 0

Greece Belgium Spain Germany Iceland Finland United Kingdom Italy Sweden Netherlands Turkey Republic Czech Croatia Japan Lebanon Estonia Latvia Sri Lanka Slovakia Macedonia Armenia

Circulation revenue per copy

250

500

Source: World Press Trends / SFN

Greece in context Advertising expenditure v Europe
Greece
40 35 30 25 20 15 10 5 0
2001 2002 2003 2004 2005 2006 2007 2008 40 35 30 25 20 15 10 5 0
03 04 01 02 06 05 20 20 20 20 20 20 20 07 20 08

Europe

Magazines

Newspapers

Magazines

Newspapers

Greece v the “8 million” nations Circulation trends
Peer countries - Paid for newspapers Circulation trends
4000000

3500000

3000000

2500000

2000000

1500000

1000000

500000

0 2001 2002 2003 2004 Benelux 2005 Greece 2006 Hungary 2007 Portugal 2008 Sweden 2009 2010

Greece v the “8 million” nations Advertising trends
Peer countries - Paid for newspapers Advertising trends
60.0

50.0

40.0

30.0

20.0

10.0

2001 2002 2003 Belgium 2004 Greece 2005 Hungary 2006 Portugal 2007 Sweden 2008 Europe 2009 2010

Greece v the “8 million” nations Key indicators
Country Titles New titles Total sales Readers per copy Titles per cap Titles per Sales Sales per adults Average circ Max circ
/ Million / million / 000 (k) (k) 05 v 01 (k)

Greece 34 2 810 9.2 3.9 42 92 24 75

Belgium 30 2 1684 2.6 3.5 17.8 195 56 289

Hungary 39 3 1800 2.4 4.6 21.7 211 46 255

Portugal 17 2 791 8.6 2 21.5 95 47 121

Sweden 94 -3 4368 1.5 12.6 21.5 583 46 429

Mega trends for publishers

Mega trends Internationalisation

Source: Boeing market outlook 200

Mega trends Aging
Readership penetration of UK daily newspapers by age over time.

Penetration

1974
15-24 25-34 35-44 45-54 55-64 65+

1984 71.7 67.9 70.8 72.6 72.4 62.0

1994 58.1 55.8 57.6 62.9 64.4 61.5

2004 43.8 43.8 45.9 50.9 58.4 57.6

81.0 79.1 77.7 81.1 77.8 68.5

Source: iMedia, UK National Readership Survey

Mega trends Aging
% of population below key ages
Ireland Cyrpus Slovakia poland Romania Malta Lithuania France Estonia Hungary Czech United Kindom Netherlands Luxembourg Latvia Portugal Spain Sweden Denmark EU Slovenia Finland Belgium Bulgaria Austria Greece Germany Italy 0 10 20 30 40

< 35 < 25

50

60

Mega trends Communities on the move
• Shift from communities of geography toward communities of interest:
• Local mass to distributed niche;

• Increasing examples of “media on the move”
• Metro • Mobile

• Context is the new content.
• Where? When? Why? • Not what and how?

Mega trends New titles attract new readers;
• Record number of new launches underway; • New generation of management challenging industry traditions:
• Brand limited to one line • Factory limited to a single product

• New products reaching out (at last) to the increasingly literate younger generation.

Free dailies Over 180 titles. Over 25 million copies
Development of free newspapers Annual total global circulation
30000

25000

20000

Others Metro

15000

10000

5000

0 1991 1992 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

Sources: iMedia, World Press Trends, University of Amsterdam

Free dailies One in five European dailies is free
European daily newspapers Split of paid for and free dailies
120,000,000

100,000,000

80,000,000

60,000,000

Free Paid

40,000,000

20,000,000

-

2000

2001

2002

2003

2004

2005

2006 E

Sources: iMedia, World Press Trends, University of Amsterdam

Free dailies Free dailies dominating many markets
Free circulation as a percentage of total circulation
Botswana Iceland Spain Singapore Portugal Switzerland Denmark Hong Kong Argentina Lithuania Chile Greece Italy France Finland Latvia Czechia Canada Sweden Ecuador Netherlands Hungary South Korea Ireland Russia Estonia UAE Belgium Poland Australia Austria UK Macedonia Mexico Malaysia USA Philippines China Japan
67 44 36 31 31 30 29 34 39 51 86

23 22 21 21 20 20 19 19 18 15 15 14 13 13 12

27 27 26

4 0 0 2

6 6 5 5

8 7

0

10

20

30

40

50

60

70

80

90

Sources: iMedia, World Press Trends, University of Amsterdam

Impact of age – Free dailies Readership patterns (European Cities)
35 30 25 20 15 10 5 0 13-24's 25-34's Free daily Paid daily

Source: Gallup TNS Metro International

What is the impact of the digital world?

Mega trends On line advertising v other media
Advertising dollars per nation hour spent with medium (USA - 2004) $US Millions TV Internet Press Advertising 40 65 316 Access 59 192 65

Sources: Veronis Suhler

Source: iMedia, Veronis Suhler

Mega trends On line advertising v other media
Communication spend per nation hour 400 350 300 250 200 150 100 50 0 1996 1998 2000 2002 2004 2006 2008 TV & Video Internet Newspapers 400 350 300 250 200 150 100 50 0 1996 1998 2000 2002 2004 2006 2008 TV & Video Internet Newspapers Consumer spend per nation hour

Sources: Veronis Suhler

Mega trends Impact of internet on print advertising
140 130 120 110 100 90 80 70 60 50 40 30 20 10 Romania 0 -10 20 -20 -30 -40 -50 -60

Impact of Internet penetration on Display and Classified advertising
Ireland Czechia

Classified

Poland

Variance in 2000-2005

Estonia Latvia Benelux Norway Greece

30

40

France Spain

Italy 50

Austria

60

UK Finland

70

Denmark Sweden

80

Germany Portugal Switzerland Netherlands

Internet penetration

Mega trends Impact of internet on print advertising
140 130 120 110 100 90 80 70 60 50 Romania 40 30 20 10 Romania 0 -10 20 -20 -30 -40 -50 -60

Impact of Internet penetration on Display and Classified advertising
Ireland Czechia Ireland Poland

Display Classified

Variance in 2000-2005

Norway Estonia Latvia Latvia Czechia Estonia Benelux Benelux Greece Norway Spain UK Finland UK Finland Netherlands 60 70 Denmark Denmark Switzerland Germany Germany Portugal Portugal Switzerland Netherlands

Greece

30

40

France Spain

Italy 50

Austria Austria

Sweden 80

Sweden

Internet penetration

Mega trends News on the Internet - Usage and value
Media consumption trends Impact of online experience in reading online newspapers
70%
% of onlikne users who read a newspaper

60% 50% 40% 30% 20% 10% 0% <1 year

UK Germany France Italy Spain

1 year

2 years

3 years

4 years

5 years

5> yrs

average

Source: iMedia, Forrester Consumer Technographics 2004

years of online experience

Mega trends Service evolution
Service range Mobile/wireless

Fixed internet

Today

time

The New News A reader writes

The New News

The New News

Norway interacts

Austria interacts

The New News
Norway interacts
• • 10,000 readers now send “content” every day; Active programme of polls and participation Newsroom established “portal” to handle content management

Austria interacts
• 100,000 of 350,000 citizens appeared in the paper or website last year; 1,500 are members of 14 community forums Established wireless network through circulation area 350,000 people) enabling free internet access for all subscribers.

The New News The people
• The popularising (and depoliticising) of the process of social debate and inclusion; • People want to be heard as much as listen; • The New News is empowering citizens to participate, influence, and direct; • Multi-media interaction may engage new generations.
The Newspaper / Media Model CRM
Reader knowledge Reader knowledge

Participation Participation

Club

Reader needs and attitudes Reader needs and attitudes

Research

Reader interaction Reader interaction

Contact

The Community / Social Model Identify CRM

knowledge Reader knowledge

Engage Club
Social change Participation

Key social issues and drivers Reader needs and attitudes

Define Research

Participate Contact
Interaction & debate Reader interaction

Analysis
• Greece has one of the highest numbers of newspapers relative to the size of the market, and therefore one of the lowest average circulations; • It’s largest newspaper is half what it should be relative to its market; • Reading demand is high. Purchase is low. • Relative to key international determinants, the market is a third under developed.

Strategic framework
Advertising Readership Editorial Technology Finance

Knowledge

Strategy

Implementation

Performance

Strategic issues
Why are reader per copy levels so high?
Readership survey is wrong? Survey is to international standards, in quality and methodology.

Greeks have weird No social factors to suggest this. reading behaviour? Circulation is under Possible that methodologies do not track all reported? sales. There are copies in Possible that copies are “acquired” that are the supply chain not reported. that are not measured

Strategic issues
Business proposition • God v mammon? • Circulation is vanity…… …… Advertising is sanity Market in the gap? • How can newspapers convert “readership” into a daily reading habit? • Can readership be converted into revenue?

Solutions
• Revisit the newspaper concept
• News, backed by analysis • Readers’ agendas not writers’ agendas

• Industry co-operation across the value chain
• Distribution • Advertising marketing

• Benchmarking and best practice
• Adoption of standards • Approach to quality v costs.

Conclusion

• Demand is under supplied • Readership can be converted into revenue can be converted into profitability. • An opportunity awaits.

Thank you

How can newspapers increase their circulation figures to ensure even larger advertising and Subscription revenues?
• • • • Through better editorial? Better interaction with the readers? Better marketing techniques? Can Arab publishers work together on aggregating their content to increase revenues?

Newspapers at a crossroads

Different media for different markets
TV’s share of advertising falls as prosperity increases
Press v TV Influence of prosperity on media usage
80

Share of advertising
% reach

70

60

50

40

30

20

10 5,000

Newspapers TV

Wealth (Per(per capita GDP Prosperity capita GDP)

10,000

15,000

20,000

25,000

30,000

Source: Zenith Media/World Bank

Different media for different markets Segmentation and impact
Average Wealth Print

TV

• Because frequent TV viewers tend to be “down-market”, the more you advertise on TV, the more frequency grows at the bottom of the market. • Because frequent readers are wealthier, the more you advertise in print, the more often

Impact

Austria in context Newspapers – the mass medium

• In 1994 there were 40 tradable TV stations in the UK. • Today there are 250+. • In 2014 this is expected to be in the region of 400. Will newspapers become the new mass medium?

Austria in context Newspapers – the sustainable medium

• In 1994 the UK’s “News at 10” enjoyed an audience of 6.6m. Today it is 3.3m. • In 1994 ITV enjoyed a share of TV audience of 39.5%. Today that figure is 23.6%.

• All this content is free of charge.

The New News The invisible media

The need for measurement

Promote advertising effectiveness The agency view

“It is time for the press to catch up with the increasing audience measurement accountability of other major media.”
Frank Harrison. Strategy Director ZenithOptimedia

Promote advertising effectiveness Levels of accountability
Average issue sale or readership What we do currently of the title readership Issue specific sale or readership Page readership Advertisement readership Advertisement response readership of a newspaper on a specific day reading traffic that is exposed to an What the advertisement media buyer is seeking actual numbers of people who read the advertisement number of people who respond to the What the advertiser wants advertisement.

Promote advertising effectiveness Accountability

Publishers currently invest less than 0.5% of ad revenues on evidence of their success.

Promote advertising effectiveness Action points
Newspapers must invest in three forms of advertising research: • Currency • Medium effectiveness • Advertisement effectiveness • Cost: Bi-annual readership survey measures demographics, interests and attitudes. Tracks incremental value of newspapers against other media Ensures advertisers messages are effective <1.5% of revenue

Manage price Value for money?
80 70 60 50 40 30 20 10 0
13 21 23 29 31 40 48 11 15 17 19 25 27 33 35 37 42 44 46 50 1 3 5 7 9

The Sun Equal value Reading traffic per page to readers?
Male Female

Source: eVolt.Co/Newspaper Society

52 TV 2 TV 4

Promote advertising effectiveness Different categories. Different results
Remodelled size effect (key categories only)
16 14 12 Readership levels 10 TV progs 8 6 4 2 0 0 Clubs 10 20 30 40 50 60 70 80 ENTS MEAN. Dept Stores Cinema Leisure Parks Concerts Health Travel Mobile phones Restaurants Insurance
R = 0.3657
2

Cable TV DIY Electrical

McDonalds

Motors FURNITURE MEAN Mixed Furniture Suites Beds

90

100

Ad size (percentage of page)

Source: eVolt.Co/Newspaper Society

The media multiplier study

Promote advertising effectiveness Uniqueness of the study
• Live, in market assessment of six brand campaigns • Primary Research
• TV in Control market • TV and Print in Test market

• Two rounds of measurements
• Pre Campaign Round (to set up benchmarks) • Post Campaign Round (to measure shifts in scores)

• Shifts in Test market measured against Control market to evaluate the Impact Multiplier Effect

Promote advertising effectiveness Brand awareness
Control Market Pre Post Index 50 82 164 15 28 186 98 98 100 98 59 98 94 100 159 Test Market Pre Post Index 205 35 72 205 450 10 45 450 99 99 100 99 94 100 85 101 90

Sundrop Nutrilite Whisper Maxi Limca Aquaguard Active Wheel

Promote advertising effectiveness Ad awareness
Control Market Pre Post Index 26 53 203 4 98 73 34 6 98 83 9 150 100 114 26 Test Market Pre Post Index 268 19 51 268 833 3 25 833 99 99 100 87 42 94 52 108 124 124

Sundrop Nutrilite Whisper Maxi Limca Aquaguard Active Wheel

Promote advertising effectiveness Control Post campaign analysis Market
On delivery of safe drinking water, I trust this brand Kid’s grow great with safe water delivered by this brand Brand has a 3 stage water purification system Protects kids from diseases Has a 3-stage Ultra Violet water purification system Brand forms a part of the healthy upbringing of my child Removes stains but keeps colours intact Removes the toughest of stains Removes stubborn stains from collar Superior quality For health conscious people Brand is light….Food cooked in it is not heavy Brand is a blend of 2 oils Brand meant for people who want to stay slim Healthy oil for healthy people It keeps you active Aquaguard 89 88 72 84 56 77 44 31 31 34 34 34 31 33 32 32

Test Market 94 92 88 91 88 81 50 50 50 72 76 75 61 79 76 80

+15%

Active wheel

+42%

Sundrop Nutrilite

+95%

Gives info. regarding body, hair and skin Gives a hygienic feeling For hygiene conscious people Gives updated info. on menstruation/periods Created awareness on sanitary protection & hygiene

36 44 44 45 49

85 92 89 +106% 91 92

Whisper Maxi

Promote advertising effectiveness Accountability
Advertising effectiveness = The effectiveness of the medium x The effectiveness of the advertisement • A high proportion of advertisements don’t work; • Before we can make the media accountable we have to make the ads accountable; • Publishers must invest in audience measurement and advertisement

In conclusion
• Print media are experiencing a renaissance:
• New publishing concepts • New content, marketing and technology solutions

• Digital media will enhance – not diminish – the publishing industry • Print remains the world’s most effective medium.

To do
• Aura: Free dailies, new launches Zenith update.

• • • •

Greece in context Mega trends for publishers The value of print Future developments

Mega trends Strategy to exploit the New News
Readership penetration of UK daily newspapers by age over time. Penetrationn I
Ga me tern Prin boy et g t bi ene and ase 1974o 1984 o 1994 rati m d bile n

2004 43.8 43.8 45.9 50.9 58.4 57.6

2014 37.1 36.9 39.5 44.8 53.1 54.6

15-24 25-34 35-44 45-54 55-64 65+

81.0 79.1 77.7 81.1 77.8 68.5

71.7 67.9 70.8 72.6 72.4 62.0

58.1 55.8 57.6 62.9 64.4 61.5

Mega trends Generations of technology
Meet the new editor • • • • • Fast Flexible Low expenses Low opinion of himself Cheap to run.

Ireland in context Circulation trends by world region
Circulation Trends Paid Dailies 2000-2005 40 35 30 25 20 15 10 5 0 -5 -10 Old Europe New EU Other Europe Asia Latin America North America Australasia

Source: World Press Trends / PwC

Ireland in context Circulation trends – Paid dailies
40 30 20 10 0
s ai n Sw e Sw de it z n er la nd k an y d nd ux a nc e w ay ec e l Ita ly Fi nl a Fr a G re D en N or Au Ire Sp

Circulation trend Four year circulation variance - paid dailies

G er

he r

Be

-10 -20 -30 -40

Paid dailies

Source: World Press Trends / PwC

N et

Po

rtu ga

ne l

m

la nd

m ar

st ri

la n

U K

Ireland in context Circulation trends – Paid and free dailies
40 30 20 10 0
s ai n Sw e Sw de it z n er la nd k an y d nd ux a nc e w ay ec e l Ita ly Fi nl a Fr a G re D en N or Au Ire Sp

Circulation trend Four year circulation variance - paid and free dailies

G er

he r

Be

-10 -20 -30 -40

Paid dailies

N et

All dailies

Source: World Press Trends / PwC/ University of Amsterdam/ Various

Po

rtu ga

ne l

m

la nd

m ar

st ri

la n

U K

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