Executive%20Briefing

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The Newspaper Outlook Big Trends and Big Ideas
Worldwide
Executive Briefing
Earl J. Wilkinson Executive Director INMA


www.inma.org
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Whats happening to your fathers newspaper?
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Source MediaedgeCIA
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Why Newspapers Matter

• A measure of a countrys freedom
• A measure of a countrys wealth-creation
  capability
• A measure of a countrys intellectual vitality
• A measure of a countrys aspirations (quality,
  popular, depth, superficiality)

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Managing the Transition
Point A
Point B
Single print product Complex print
package Bigger is better
Internal focus Monologue/customers Monetize
monologue Journalism role news/no limits
Marketing non-existent High profit
margins (20)
Multi-media product Focused print
package Smaller is better
External focus
Dialogue/customers Monetize dialogue
Journalism role navigation/local
Marketing constant Medium profit
margins (10)
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History of Newspapers
1440 Gütenbergs Printing Press Invented in
Germany
1610-1650 Weekly Newspapers Developed in Europe
1690-1830 Politically challenging papers in
America
1850-1920 Development of newspaper professions
1910-Present Ownership consolidation
1400
1450
1500
1550
1600
1650
1700
1750
1800
1850
1900
1950
2000
2050
1470-1610 News Books and Sheets in
Italy
1641-1690 Notion of Press Freedom
Developed/England
1830s Penny/Pauper Press in U.S., England, France
1890s Yellow press, sensationalism, competition
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This Presentation

• Structural challenges transforming newspaper
  industry
• Link value creation to big trends at newspapers
• The transition from mono-media to integrated
  multi-media
• Creative ways newspapers are engaging with
  audiences
• Creative ways newspapers are engaging with
  advertisers

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Global Newspaper Industry
11,207 daily newspapers circulating 500,000,000
copies each day
Europe Newspapers 2,398
North America Newspapers 1,577
Middle East Newspapers 272
Asia Newspapers 5,071
Africa Newspapers 400
South Pacific Newspapers 89
Latin America Newspapers 1,400
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Creation of Value

• Shareholders
• Readers
• Advertisers
• Employees
• Geographic communities
• Demographic communities
• Virtual communities

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Newspaper Market Caps
Publicly Traded Newspaper Companies
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Sources/Notes U.S. newspapers, Yahoo, 2005-2006
non-U.S. newspapers, Bloomberg (April 2007), 2006
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Value Disruptors

• Technology Creates alternative access points for
  information, creating a concierge class for
  news-feeding
• Abundance Creates a disconnect between news and
  success (relevance), especially among lower
  middle class

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Technology and Abundance

• U.S. households have more television sets than
  people
• Threshold crossed in the past 3 years
• In this environment, is there really demand for
  another newspaper section?

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Newspapers Amid Abundance Case Of Libération

• Upscale, legendary Paris tabloid
• Single-copy in nature
• Editors wanted to add value for readers
• Added 24-page supplement to 72-page daily format
• Top-flight journalism, highest quality

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Newspapers Amid Abundance Case Of Libération

• Circulation dropped 30
• Research conducted on what went wrong
• Answer Nothing, traditionally speaking
• Readers maintained high opinion of Libération

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Newspapers Amid Abundance Case Of Libération

• Circulation dropped 30
• Research conducted on what went wrong
• Answer Nothing, traditionally speaking
• Readers maintained high opinion of Libération
• Readers felt guilty about not being able to read
  cover to cover (no time)

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Value Levers

• Audience

Brand
Content
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(No Transcript)
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Complexity Accelerating
Source MediaedgeCIA
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Backvertising, Assvertising, Nailvertising
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Lipvertising, Teethvertising, Headvertising,
Fruitvertising
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Eggvertising?
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The Big Picture Chasing
Fragments

• Consumers Fragmenting Technology and abundance
  disrupting information consumption
• Advertisers Chasing Fragments Advertisers
  shifting to multi-media
• Newspapers Regrouping Newspaper business model
  changing as a result
• Fast Change Rewarded Companies changing faster
  rewarded, those changing slower punished

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Circulations Down 8
Paid Dailies in Western Democracies During Past
Decade
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Usage, Engagement

• Engaged have become more engaged disengaged have
  become more disengaged
• No time to read
• Fast consumption looking at, not reading
• Simultaneous media use
• Place shifting (print newspaper at home, free
  daily on train, internet at work, Blackberries in
  transit)

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Junkies
8
Loyalists
15
12
25
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Specialists
Engagement
Upper Mass
30
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Lower Mass
20
21
Disconnected
5
5
Source Urban Associates data on U.S. newspapers
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Free Dailies 1995
Launch of Metro in subway system of Stockholm,
Sweden
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Free Dailies 2008
169 free dailies, 30 million copies, 40 countries
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Lite Newspapers
Radical daily miniaturisation,
repackaging of traditional newspapers
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U.K. Qualities, Populars
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U.S. Mornings, Evenings
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U.S. Population vs. Daily
Newspaper Growth
Population up 118

• Readership Gaps
• Working women
• Single-parent households
• First-generation immigrants

Daily newspaper circulation up 33
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Circulation Winners, Losers
Circulations decrease, 1996-2006
Circulations increase,
1996-2006
Others unaudited, incomplete
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So Goes the Middle Class

• Circulation and readership trends are consistent
  worldwide within ABC1 demographics
• Print circulation performance mirrors the middle
  class
• If middle class grows, circulation grows
• If middle class stagnates, circulation stagnates

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What Readers Value
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What Readers Value

• Expectation of always on, customisation
• Looking for connector of ongoing conversation
• Sense of community from geography to interests
• Consuming more media, smaller bites
• Faster consumption looking at, not reading
• Value best at, not sort of good at

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News Diet Changing
Evening News Buffet, 1945-1970
600 700 800 900 1000 1100 1200
1300 1400 1500 1600 1700 1800 1900
2000 2100 2200 2300
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News Diet Changing
Morning News Buffet, 1970-2000
600 700 800 900 1000 1100 1200
1300 1400 1500 1600 1700 1800 1900
2000 2100 2200 2300
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News Diet Changing
Diabetic News Consumer, 2000-Present
600 700 800 900 1000 1100 1200
1300 1400 1500 1600 1700 1800 1900
2000 2100 2200 2300
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The Newspaper Macro View

• Diabetic News Consumer Consumers reading more
  than ever before, but in smaller bites
  throughout the day as technology allows
• Search For Value Print newspaper content package
  has been commoditised by internet, mobile,
  readily available free print products
• Acceleration, Not Discovery Trends been going on
  since 1950, internet is simply accelerating
  trends for all traditional media

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Advertiser View

• Chasing consumers anywhere they live and breathe
• Battle for attention spans
• Growing preference toward measurable media over
  mass media as technology allows
• Will continue to associate with media that
  produce quality, exhibit creativity

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Newspaper USPs

• Unique local content and interaction
• Ability to create products that are digestible in
  one sitting
• Speed with which publishers impart news
• Content based on who an individual is and where
  the individual is at the moment information
  received
• Value of the newspaper brand
• Ability to deliver simple, quantifiable local
  response to advertisers

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Advertising Effectiveness
Ad Recognition by Readership Style
Full-Page Ad Recognition By Age
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Advertising Effectiveness

• U.K. Newspaper ads garner 2x attention as TV
  commercials
• Canada 76 use newspaper ads to track
  availability, prices, offers

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The Hard Questions

• What is the quality of audience reached?
• What is that audiences engagement with the
  medium?
• What is the size of the mediums footprint on the
  attention of readers?
• How frequently do consumers touch the medium when
  making buying decisions?
• Do consumers trust the medium?
• How passionate is the consumer bond with the
  medium?

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Advice from Advertisers

• Quality index of newspaper companys
  multi-product portfolio
• Bundle consumer research with consumer databases
  and newspaper advertising for an overall
  marketing value package
• Return on investment

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Newspaper Story Evolving

• Increasingly, dealing with newsmedia companies,
  not newspaper companies
• Product lines diversifying online, mobile, TV
  and print
• Ways to reach consumers under newsmedia brand
  proliferating
• Can be great news for advertisers
• Can be great news for newspapers if we can
  figure out the formula

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What are the value propositions for newspapers in
this new marketplace?
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What Is the Value Proposition?
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Music Industry

• Dominated by a single product (CD)
• Sales driven by 1-2 songs per CD, with 90 rarely
  consumed
• Value-added items included to boost sales song
  lyrics, artist photographs, coupons
• Artist-driven industry
• Studio-controlled industry
• An industry, historically, with high protective
  walls around it

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U.S. CD Unit Sales
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Percent of Online Households That Download Music
Illegally
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Hit Albums
Gold, Platinum, Multi-Platinum, Diamond
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Music Industry Copes With Threats To Its Business
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Classifying Media By Threat Level,
Cultural Factors
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Music vs. Newspaper Industries

• Music
• Dominated by a single product (CD)
• Sales driven by 1-2 songs per CD, with 90 rarely
  consumed
• Value-added items included to boost sales song
  lyrics, artist photographs, coupons
• Artist-driven industry
• Studio-controlled industry
• An industry, historically, with protective walls
  around it

• Newspaper
• Dominated by a single product (print newspaper)
• Sales driven by 1-2 stories per edition, with 90
  of content skipped or skimmed
• Value-added items included to boost sales
  promotions, inserts, special sections
• Journalist-driven industry
• Publisher-controlled industry
• An industry, historically, with protective walls
  around it

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Music Industry Re-Imagining Its Value
Proposition

• Music industry abandoning single product
  mentality
• Re-imagining its marketspace
• Still wrestling with commodities, value-addeds,
  and junk
• IBM Slowness to change has cost music industry
  US100 billion

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Moving from product focus to
marketspace focus
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Owning Space

• Procter Gamble Oral Care Selling different
  things to the same customer (owning toothspace)
• Amazon.com Selling different things to different
  customers (owning internet retailspace)
• IDG Selling the same thing to different
  customers (owning knowledgespace)
• Federal Express Selling more of the same thing
  to the same customers (owning shippingspace)

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Newspaper Marketspace
Young
Old
Poor
Rich
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1988 Newspaper Marketspace
Young
Print Daily Newspaper 75 household
penetration 23 advertising share
Old
Poor
Rich
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2008 Newspaper Marketspace
Young
Print Daily Newspaper 48 household
penetration 15 advertising share
Old
Poor
Rich
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2018 Newspaper Marketspace
Young
Print Daily Newspaper 35 household
penetration 12 advertising share
Old
Poor
Rich
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2018 Newspaper Marketspace
Young

• The Newspaper Dream
• Single print product
• Keep the old and rich
• Attract the young and rich
• Flirt with the wannabe young and rich
• Monetize for advertisers

Print Daily Newspaper 35 household
penetration 12 advertising share
Old
Poor
Rich
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2018 Newspaper Marketspace
Young
Print Daily Newspaper 35 household
penetration 12 advertising share
Old
Poor
Rich
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The push for marketspace
means multi-media
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Multi-Media Future
Television
Radio
Mobile
E-mail
Web
Publications
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Total Audience
Print
Web
Mobile
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Total Audience Aftonbladet, Sweden
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Unduplicated Audience
Print
Web
Mobile
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Unduplicated Reach
VG, Norway
Print Newspaper 1,356,000 daily
readers
Total Unduplicated
Daily Coverage
1,847,000 (47
of population)
Web Site 926,000 daily readers
Mobile/SMS 58,000 daily readers
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Duplicated Audience
Print
Web
Mobile
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Duplicated Reach Asahi Shimbun,
Japan
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Value Chain Has Changed

• Yesterday
• Create the biggest product
• Which draws the largest audience
• Which attracts the most advertisers

• Today
• Target a niche audience
• Create a product to serve tightly-defined
  audience
• Sell advertising around target audience

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Audience Value Proposition

• Yesterday
• Size

• Today
• Size
• Scope
• Shape
• Quality
• Frequency
• Engagement

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Newspapers cannot be defined by the second
word paper. Theyve got to be defined
by the first word news.
Arthur Sulzberger Jr., The New York Times
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History of Newspapers
1440 Gütenbergs Printing Press Invented in
Germany
1610-1650 Weekly Newspapers Developed in Europe
1690-1830 Politically challenging papers in
America
1850-1920 Development of newspaper professions
1910-Present Ownership consolidation
1400
1450
1500
1550
1600
1650
1700
1750
1800
1850
1900
1950
2000
2050
1470-1610 News Books and Sheets in
Italy
1641-1690 Notion of Press Freedom
Developed/England
1830s Penny/Pauper Press in U.S., England, France
1890s Yellow press, sensationalism, competition
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you
CANT
do that
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Valentines Day Editions
Polands Gazeta Pomorska Male and Female
Versions of Newspaper
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Dagbladet on Playstation
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Words Matter
Slogan Celebrates Written Word, Importance of
Reading Newspaper
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Mozaic
Het Nieuwsblad Print Brand Campaign Using Reader
Photos
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Mozaic
Het Nieuwsblad Print Brand Campaign Using Reader
Photos
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Breast Cancer Awareness
Sydney Morning Herald Printed In Print to Draw
Awareness
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Drive-Through Classifieds
El Universal Creates Escape From Urban Chaos,
Generates Revenues
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Toward Magazines?
The Power of Canadas Globe and Mail Front Pages
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Place Classifieds At Newsstands
Gazeta do Povo Generating Revenue by
Democratising Access Points
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Podcasts, Bluecasts
Londons City AM Taking Technology Further
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Weight Club
Aftonbladet Generates Millions From 200,000 Paid
Club Subscribers
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Social Networking
Bakersfield Californian MySpace Meets Yellow
Pages
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Hyper-Local Content
Bluffton Today Free Home Delivery, Local-Only
News
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Expressen TV
Online Video YouTube Style With Quality News,
Sports, Entertainment
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Las Ultimas Noticias
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South Africa Daily Sun

• Popular newspaper aimed at aspiring black at
  the beginning of upward social mobility
• Audience 75 has never read a newspaper before
• Short stories, heavy graphics (maps)
• Founded in 2002 today, circulation nearly
  500,000 and growing as company expands nationally

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When Pigs Fly

• Like most urban dailies, circulation declined for
  years
• Contributes to overall bad image of newspapers
• Knight Ridder sells to owner who believes in
  marketing

• Cynics said circulation would grow again in
  Philadelphia when pigs fly
• Increases marketing budget from US300,000 in
  2005-06 to US14,000,000 in 2006-07

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(No Transcript)
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you
CANT
do that
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Islam File Koran Giveaway

• Promote 15-part pullout supplements in De
  Standaard on Islam
• Gave away free Korans to coincide with special
  report
• Involve readers in community discussions,
  important in Belgium because of Danish cartoons
  unrest
• Single-copy sales up 138 on day of Koran
  giveaway

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Free Prince CD

• The Mail on Sunday aimed to create buzz among
  young readers and retail outlets
• Free Prince CD
• Sold out 2.8 million copies, including 600,000
  new readers
• Largest promotional uplift for a U.K. Sunday
  national daily

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Wednesdays Stand Out For Media Buyers

• Promotional campaign by Mid Day for clients and
  media agencies at Hard Rock Café
• Mid Day brand Making Workdays Fun
• Media Nites promoted via print, radio, and online

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Online Template For Students To Produce Newspaper

• Ekstra Bladet creates The Newsroom,
  internet-based editorial platforms where schools
  produce their own newspaper
• Only known application of its kind in the world
• Develop writing skills, participate in editorial
  meetings, lay out newspaper
• Ekstra Bladet colour prints copies and delivers
  to schools (100 newspapers so far)

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Search Engine Marketing Campaign Drives Traffic

• Houston Chronicle search engine marketing service
  that optimises traffic volume to an advertisers
  web site or physical site, as well as quality of
  sales leads
• Campaign enhances Chronicles position as local
  online advertising resource
• 260 growth in customers
• 317 growth in Chron.com SEM revenue

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Ask Readers for Suggestions On Slogans
Promoting Elections

• 10,000 ideas from Gazeta Wyborcza readers
• Printed 4 versions of the front page with 4
  different headline/ slogans, available at
  newsstand
• I dont migrate, I vote
• Put yours
• Only a monkey doesnt vote
• Vote, you (old) prick
• Circulation up by 20,000
• Strong public relations

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Contest Photo/Video Uploads

• Dallas Morning News launches microsite for high
  school sports
• Encourages students, parents, fans to upload
  photos and videos
• Daily cash prizes for best photos
• School with most uploads win US10,000 cash prize
  for high school prom
• 129,004 photos, 5,497 videos uploaded

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Lead India

• Launched campaign on Indian Independence Day in
  2007 by The Times of India
• Country advancing in spite of (not because of)
  its politicians
• Encourages everyday people to become leaders
• Multi-media campaign showing India as half
  full, not half empty
• Wrapping The Times of India in this future

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MediaLab for Advertisers

• Philadelphia Inquirer created MediaLab to show
  advertisers the power of newspaper advertsing
• Shopping channel QVC was shown power of print in
  national image campaign
• Benefited Inquirer and other newspapers

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Stunt All Eyes on (ST701)

• Miss Singapore lives in a glass house for a week
• Lives on materials that can be accessed through
  Straits Times ST701 micro-site
• Keeps regular blog
• Ancillary contests
• ST701 web site traffic up 50 over 7-day period
• Generated lots of buzz

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you
CANT
do that
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Advertising Experiments
Frances 20 Minutes
Scented Advertising
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Advertising Experiments
Germanys Frankfurter
Allgemeine Zeitung Transparent Cover
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Advertising Experiments
China Double Panorama
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Advertising Experiments
Finlands Helsingin
Sanomat Substitute Front Page
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Advertising Experiments
Germanys Handelsblatt
Spadea
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(No Transcript)
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Irregular Ads
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Irregular Ads
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Irregular Ads
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Irregular Ads
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Irregular Ads
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Irregular Ads
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Folha Origami
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Giant Folha
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Vertical Giant Folha
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Giant Folha
Horizontal Giant Folha
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Folha Top Cover
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Folha Belt
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you
CANT
do that
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Conclusions
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Source MediaedgeCIA
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Is the Sky Falling?

• Circulation down
• Print advertising down
• Number of journalists down
• Media ownership consolidation is up

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Re-Arranging Clouds

• Circulation down
• Total audience across media platforms is up
• Print advertising down
• Advertising across newspaper-branded platforms is
  up
• Access to readers who bring us advertising is
  growing
• Number of journalists down
• Number of journalist roles is up
• Media ownership consolidation is up
• Stock buy-back programmes are up

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Newspaper Value Propositions

• Newspapers re-imagining their value proposition
• Audience development
• Value for advertisers
• Provided technological alternatives, consumers
  choosing to consume news on many platforms
• Advertisers chasing consumers across platforms
• Newspapers creating new platforms, reinventing
  themselves as multi-media companies
• (Im)patiently waiting for business models to
  emerge

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INMA Harvester of Ideas
Constantly In Search of Global Best Practices

• Know your value proposition and sell it dont
  equivocate
• About positioning your brand amid technology,
  abundance
• Change is a constant moving forward
• Old practices are dying, new practices are
  created
• The newspaper will never be the same

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Not Your Fathers Newspaper
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If you would like a copy of this presentation,
please give me your business card at the break
Executive Briefing
The Newspaper Outlook Big Trends and Big Ideas
Worldwide
Earl J. Wilkinson Executive Director INMA


www.inma.org