World Press Trends: Print and digital together increasing newspaper audiences

“Unless we crack the revenue issue, and provide sufficient funds so that newspapers can fulfill their societal role, democracy will inevitably be weakened,” Larry Kilman, secretary general of WAN-IFRA, told the 66th World Newspaper Congress in Torino.

“The role that newspapers play in society cannot be underestimated, and has never been more crucial,” he says. “If newspaper companies cannot produce sufficient revenues from digital, if they cannot produce exciting, engaging offerings for both readers and advertisers, they are destined to offer mediocre products with nothing to differentiate them from the mass of faux news. Finding the sustainable business models for digital news media is not only important for your businesses, but for the future health of debate in democratic society.”

The survey, presented annually at the global summit meetings of the world’s press, reveals:

• Print circulation increased 2% globally in 2013 from a year earlier but declined by 2% over five years. Around 2.5 billion people around the world read newspapers in print and 800 million on digital platforms.
• Print circulation continues to rise in countries with a growing middle class and relatively low broadband penetration, but long-term structural declines in print circulation continue in mature markets as audiences shift their focus from print to digital. Circulation rose 1.45 per cent in Asia in 2013 from a year earlier and 2.56% in Latin America; it fell 5.29% in North America, 9.94 per cent in Australia and Oceania, 5.20% in Europe and 1% in the Middle East and Africa.
• Over five years, newspaper circulation rose 6.67% in Asia, 6.26% in Latin America and 7.5% in the Middle East and Africa; it fell 10.25% in North America; 19.59%in Australia and Oceania; and 23.02% in Europe.
• Print advertising world-wide declined 6% in 2013 from a year earlier and declined 13% over five years. Digital advertising for newspapers increased 11%t in 2013 and 47% over five years, but remains a relatively small part of overall internet advertising. Much of internet advertising revenue goes to only a handful of companies, and most of it goes to Google.
• Print newspaper advertising increased 3.9% in Latin America in 2013 compared with a year earlier, but fell in all other regions: 3.2% in Asia and the Pacific, 8.7% in North America, 8.2% in Europe; and 1.8% in the Middle East and Africa.
• Over five years, print newspaper advertising increased 3.3% in Asia and the Pacific, 49.9% in Latin America. It declined 29.6% in North America, 17.9% in Europe, and 21.1% in the Middle East and Africa.
• While digital advertising continues to grow, it still represents a small part of overall newspaper revenue. Globally, 93% of all newspaper revenues continue to come from print.
• Global newspaper publishing revenues from print circulation and advertising were stable year-on-year at US $163bn in 2013. But that figure is down from US $187bn in 2008.
• Paid digital circulation increased 60% last year and rose more than 2 000% over the last five years, albeit from a very low starting point.

“There is growing understanding by the public that you get what you pay for, and an increasing willingness to pay for newspaper content on digital platforms,” says Kilman. “With all the free offerings out there, people are still willing to pay for news that is professionally written and edited, that is independent, entertaining and engaging. In short – what newspapers have offered for 400 years, and continue to offer, on emerging and existing platforms, no matter how it is delivered.”

The World Press Trends survey includes data from more than 70 countries, accounting for more than 90 per cent of the global industry’s value. The data is compiled through an enormous undertaking by dozens of national newspaper and news media associations and generous support from global data suppliers: Zenith Optimedia, IPSOS, ComScore, RAM and the ITU.

While newspapers attract a significant portion of the total internet audience, the biggest challenge for publishers continues to be how to increase the engagement of audiences on digital platforms. While 46% of the digital population visits newspaper websites, newspapers are a small part of total internet consumption, representing only 6% of total visits, 0.8% of pages viewed and 1.1% of total time spent on digital platforms.

Newspapers have begun working to increase these measures of engagement, and are doing so in a variety of ways, the survey found:

• By increasing their social media presence to interact with audiences and building their brands;
• By promoting upcoming material and providing incentives through database marketing;
• By improving site navigation and restructuring pages based on audience interest, to encourage increasing page visits; and
• By developing audience knowledge based on past visits to enhance their experience and increase the time they spend.

“While there is much to be done, the good news is, there is evidence that progress is being made,” says Kilman. “And it is essential for our industry to continue to come together to exchange ideas, learn what others are doing, find inspiration about what can be done so, ultimately, we can continue to provide the accurate and credible news and information that citizens need, and have long come to expect from us, to make informed decisions in democratic society.

“This is the ultimate goal, and the challenge,” he says. “Your successes – and your failures – will not only have an impact on your businesses today, but are also likely to have a profound impact on your children, on the shape of society in the future.”

The survey also found:

• Television continues to maintain the largest share of global advertising revenues, with 40.1 per cent, followed by internet with 20.7%, newspapers with 16.9%, magazines with 7.9%, outdoor with 7%, radio with 6.9%, and cinema with 0.5%.
• The newspaper industry’s value – US$ 163bn annually from circulation sales and advertising – compares with US$ 102bn book publishing revenues, US$ 87bn film revenues, and US$ 50bn music revenues.
• Regionally, 36% of newspapers’ market value is in Asia, 34%in Europe, the Middle East and Africa, 21% in North America and 9% in Latin America.
• While single copy newspaper sales have fallen 26% since 2008, subscription sales have fallen only 8%, indicating higher loyalty and stronger customer relationships with subscribers.

This post was first published on the Wan-Ifra website. Follow all the action at the 66th World Newspaper Congress in Torino, Italy with Twitter hashtags: #wnc14 (Congress), #editors14 (Editors Forum), and #waf14 (Advertising Forum).