Mise en page 1 - World Association of Newspapers
Mise en page 1 - World Association of Newspapers
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Shaping the Future <strong>of</strong> the NewspaperANALYSING STRATEGIC DEVELOPMENTS AND OPPORTUNITIES IN THE PRESS INDUSTRYSPECIAL REPORTMAY 2008 © WAN2008<strong>World</strong>DigitalMediaTr<strong>en</strong>ds<strong>Newspapers</strong> are harnessingthe power <strong>of</strong> digital media,which is growing in doubledigitsworldwide, both in usageand rev<strong>en</strong>ue-makingwww.future<strong>of</strong>th<strong>en</strong>ewspaper.comAll the strategy reports are available to WAN members and subscribers at the SFN website
Shapingthe Future<strong>of</strong> the Newspaperwww.wan-press.orgSFN IS A WORLD ASSOCIATION OF NEWSPAPERS PROJECT,SUPPORTED BY FIVE OF THE WORLD’S LEADING BUSINESS PARTNERSwww.atex.com/THE LEADING SUPPLIER OF SOLUTIONS AND SERVICES FOR ADVERTISING,CONTENT MANAGEMENT, CIRCULATION AND ONLINE APPLICATIONSwww.man-roland.com/<strong>en</strong>/p0001/index.jspA LEADING COMPANY FOR NEWSPAPER PRODUCTION SYSTEMSwww.publigroupe.com/<strong>en</strong>/hom.cfmTHE SWITZERLAND-BASED INTERNATIONAL ADVERTISINGAND PROMOTION GROUPhttp://w3.upm-kymm<strong>en</strong>e.com/ONE OF THE WORLD’S LEADING PRINTING PAPER PRODUCERSwww.tel<strong>en</strong>or.com/THE LEADING NORWEGIAN TELECOMMUNICATIONS, IT AND MEDIA GROUP© WORLD ASSOCIATION OF NEWSPAPERS, 2008
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDSTABLE OF CONTENTSExecutive Summary 5Introduction 91 Global Media Advertising Landscape 15Global <strong>en</strong>tertainm<strong>en</strong>t and media market 17Global advertising by category 19Global advertising by region 21App<strong>en</strong>dix 272 Digital Media Advertising Landscape 41Global digital/mobile rev<strong>en</strong>ue 41Online media 41Mobile media 50Games 55Digital TV 573 Media Usage Tr<strong>en</strong>ds 59G<strong>en</strong>eral media usage tr<strong>en</strong>ds 59Online usage and user pr<strong>of</strong>iles 72Mobile usage and user pr<strong>of</strong>iles 934 Impact on Newspaper Industry 105Advertising in newspapers 105News sources 108<strong>Newspapers</strong> readership 109U.S. online newspapers 111Rev<strong>en</strong>ue needs for 2012 in Nordic region 1125 Newspaper Industry Digital Tr<strong>en</strong>ds 115Networks 115quadrantONE: New online U.S. advertising network 118Yahoo! Newspaper Consortium grows 118The growth <strong>of</strong> search functionality and advertising 118Mobile 119Researching online news users: Scripps 121Conclusion 123App<strong>en</strong>dix 1263
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER4
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSExecutive SummaryIn rec<strong>en</strong>t years, the global media industry hasexperi<strong>en</strong>ced dramatic changes, both in terms <strong>of</strong>user behaviour and rev<strong>en</strong>ue-makingperformance. Emerging channels, includingthe Internet, mobile and other interactivemedia, are outperforming their traditionalcounterparts in growth rates and seizingmarket share from them.Digital media are a double-edged sword to th<strong>en</strong>ewspaper industry. Many publishers aroundthe world are experi<strong>en</strong>cing a recession in printadvertising and readership, but at the sametime are seeing new opportunities op<strong>en</strong>ing upin emerging platforms, including online andmobile. The most important task fornewspapers is to wisely navigate these newareas, developing a strong pres<strong>en</strong>ce in onlineand mobile. This means tapping into newrev<strong>en</strong>ue streams with a plan to monetizestrategically both now and in the future,<strong>en</strong>suring increasing str<strong>en</strong>gth in these newareas, which translates into financial gains andstability as time goes on.The <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong>’ 2008<strong>World</strong> Digital Media Tr<strong>en</strong>ds (WDMT)showcases a collection <strong>of</strong> top studies from 71research partners about digital usage andrev<strong>en</strong>ue patterns. This report aims to provide adigital compass for media strategists andmarketers around the world, as they considerhow to best map out and tap into opportunitiesin a new media era.The second edition <strong>of</strong> the WDMT reportexplores global and regional tr<strong>en</strong>ds in digitalmedia for rev<strong>en</strong>ue-making and usage patterns,as well as comparisons to data from othermedia outlets. This year, the report has be<strong>en</strong>expanded by more than 30 perc<strong>en</strong>t, <strong>of</strong>fering awider variety <strong>of</strong> studies and more detailedview on global and regional media usagepatterns and consumption.The foundation <strong>of</strong> the expansion <strong>of</strong> Internetand mobile usage is digital infrastructure anddevice usage. Each year, WAN creates anindex <strong>of</strong> “digital hot spots” around the world,based on the 2008 <strong>World</strong> Fact Book dataproduced by the U.S. C<strong>en</strong>tral Intellig<strong>en</strong>ceAg<strong>en</strong>cy. In its second year, the Digital HotSpots index has be<strong>en</strong> expanded to include notjust combined mobile and Internet hot spots,5
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERDigital Hot Spots, 2008Hottest Mobile > 65% Internet > 40%Hot in mobile Mobile > 65% Internet < 40%Hot in Internet Mobile < 65% Internet > 40%Coolest Mobile < 65% Internet < 40%Source: 2008 <strong>World</strong> Factbook, C<strong>en</strong>tral Intellig<strong>en</strong>ce Ag<strong>en</strong>cy© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008but also individual mobile and Internet hotspots around the world. Several countries havebe<strong>en</strong> added to the list <strong>of</strong> hot spots since lastyear, mostly in southern Europe.The first two chapters in this report detail themedia advertising landscape, with a focus ondigital media. According to consulting groupPricewaterhouseCoopers (PwC), digital/mobilerev<strong>en</strong>ues are predicted to expand within 10years, from US$12.7 billion in 2002 to $153.4billion in 2011, a growth <strong>of</strong> more than 12-fold.These digital rev<strong>en</strong>ues, including onlinesubscriptions, digital mobile, TV and musicdownloads, video-on-demand, online ads,online/mobile video games and e-publishing,mark significant, double-digit range growtheach year.Global advertising has grown steadily since2002, and is expected to reach US$500 billionin 2010, with an average CAGR <strong>of</strong> 5.4 perc<strong>en</strong>tfrom 2007 to 2011, according to PwC.Television is the largest contributor, at $119.9billion in 2002, and is expected to reach$196.9 billion in 2011. It remains responsiblefor the biggest share throughout the time,around 37 perc<strong>en</strong>t.<strong>Newspapers</strong>, although still growing adrev<strong>en</strong>ues from $102.5 billion in 2002 to $132.7billion in 2011, continue to lose market share.Other traditional media such as magazines and%4035302520151050Share <strong>of</strong> Global Advertisingby Sector36,931,5TV <strong>Newspapers</strong> MagazinesRadio Out-<strong>of</strong>-home Internet37,6 37,929,626,514,2 13,4 14,212,48,3 10,88,97,55,72,8 6 5,7 5,82002 2005 2008 201137,12513,8127,36Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20086
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSUS$ million600,000500,000400,000300,000Global Advertising by Segm<strong>en</strong>tOut-<strong>of</strong>-Home MagazinesRadio Internet458,014 478,784<strong>Newspapers</strong> Television325,025 336,840 364,706 383,565 407,457 427,473507,728 530,970200,000100,0000% annual changeOut-<strong>of</strong>-HomeRadio<strong>Newspapers</strong>MagazinesInternetTelevisionTotal20020.73.9-2.6-5.4-8.34.1-0.120033.82.22.51.528.14.93.620046.44.54.94.942.010.68.320056.82.33.24.939.33.55.22006p6.32.12.33.337.96.66.2Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200820076.62.71.43.228.43.94.920087.43.32.83.722.08.87.120096.53.72.74.016.62.74.520106.14.33.34.213.66.76.020115.94.43.23.911.53.44.62007-11CAGR6.53.72.73.818.35.15.4radio are also experi<strong>en</strong>cing share decline, from14 perc<strong>en</strong>t and nine perc<strong>en</strong>t, to 12 perc<strong>en</strong>t andsev<strong>en</strong> perc<strong>en</strong>t, respectively. The most growth ishapp<strong>en</strong>ing in the Internet sector, which ispredicted to surge from $9 billion in 2002 to$73.1 billion in 2011. Its CAGR from 2007 to2011 will be three times more than theaverage, PwC has forecast, with its sharejumping from less than three perc<strong>en</strong>t in 2002to nearly 14 perc<strong>en</strong>t in 2011, and is expectedto continue rising.WDMT Chapter 3 digs deeper into mediaconsumption and usage patterns, building onwhat factors drive rev<strong>en</strong>ue detailed in previouschapters.This year, WDMT has also found manysources pointing out the growing popularity <strong>of</strong>digital channels, such as:• The mobile customer base worldwide hasgrown from 945 million in 2001 to 2.6 billionin 2006. In 2001, more than 60 perc<strong>en</strong>t, or 576million, came from industrialised countries,while 369 million were from developingcountries. In 2006, however, customer bases indeveloping countries surpassed those inindustrialised countries, with 1.7 billion, or 66perc<strong>en</strong>t, versus the 886 million inindustrialised countries.• Global wireless subscriptions continue togrow, from 1.1 billion in 2002 to a projected3.4 billion in 2011, an expansion <strong>of</strong> more thanthree-fold.• The broadband market is expected to growfrom 51.38 million households worldwide inGlobal Mobile Customers& Mobile D<strong>en</strong>sity,Industrialised Countries vs.Developing Countries, 2001 – 2006Industrialised countriesMobile customersMobile d<strong>en</strong>sity (%)Source: Mobile 2007, IDATE© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Developing countriesMobile customersMobile d<strong>en</strong>sity (%)million2,00091.81,80085.5171678.21,60071.61,40060.965.813201,2001,000955886821800748600 57662568270532.152125.0400 36918.313.77.410.320002001 2002 2003 2004 2005 2006%10090807060504030201007
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERGlobal Advertising Sp<strong>en</strong>ding and Market Share: Internet and <strong>Newspapers</strong>US$ millions140,000<strong>Newspapers</strong> ad exp<strong>en</strong>diture (US$ millions)<strong>Newspapers</strong> market share (%)Internet ad exp<strong>en</strong>diture (US$ millions)Internet market share (%)(%)35120,00030100,0002580,0002060,0001540,0001020,0005002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Sources: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20082002 to nearly 540 million households in2011, a growth <strong>of</strong> more than t<strong>en</strong>-fold.Chapter 4 focuses on how tr<strong>en</strong>ds are impactingthe newspaper industry. For newspapercompanies, an obvious tr<strong>en</strong>d has appeared inpast years showing overall global newspaperadvertising market share is dropping. However,several studies have pointed out opportunitiesfor newspapers that are able to embrace digitalformats and marry the two.• A Harris Interactive and Innovation MediaConsulting Group survey in sev<strong>en</strong> countriesconcluded that the Internet will become theprimary news and information source withinfive years, while newspapers will lose thedominating position they have held for morethan a c<strong>en</strong>tury.that newspapers migrating to online shouldcontinue conc<strong>en</strong>trating on print side, keepingexisting print customers happy, while addingonline advertising customers for a morepositive combined rev<strong>en</strong>ue outlook.In Chapter 5, WDMT has highlighted somesavvy newspaper companies, which areachieving success with their digital rev<strong>en</strong>uemakingand audi<strong>en</strong>ce-building strategies,serving as best practices in the digital era.These cases include quadrantONE, the Yahoo!Newspaper Consortium, NYTimes.com, AsahiShimbun, Gannett Company, Inc., Agora andthe E.W. Scripps Company. These pioneeringexamples will be a role models for the industryin this changing era.• A U.S. survey from Datran Media concludednewspapers should not stick to printadvertising as their sole rev<strong>en</strong>ue source, butshould embrace new opportunities in digitalformats. According to the 2007 E-mailMarketing Survey, marketers would like to us<strong>en</strong>ew ad formats more than they would like touse print ads in their marketing plans for thefollowing year. More than 60 perc<strong>en</strong>t <strong>of</strong>responding marketers planned to use e-mail orsearch marketing tactics in 2007, while lessthan 20 perc<strong>en</strong>t planned to use printadvertising.• Studies from comScore and the NewspaperNational Network, on the other hand, report8
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSIntroductionThe <strong>World</strong> Digital Media Tr<strong>en</strong>ds (WDMT)yearbook was born in 2007 in order to shine alight on the digital opportunities that areavailable to newspaper companies worldwide –not through case studies and quantitativeanalysis, but rather, through statistical factsand projections based in solid qualitativeresearch methodology.In its second year, WDMT serves as a deskrefer<strong>en</strong>ce for publishers, business strategists,academics and editors in illuminating the vastarray <strong>of</strong> editorial and rev<strong>en</strong>ue-making productson digital platforms. Statistics clearly showtr<strong>en</strong>ds in usage patterns and rev<strong>en</strong>uetrajectories, which signal opportunities. Forexample, all indications show that both videousage online and corresponding videoadvertising show great promise in many parts<strong>of</strong> the world.A good place to start in the analysis <strong>of</strong>qualitative data is to id<strong>en</strong>tify which digitalchannels show promise in which countriesaround the world. The <strong>World</strong> <strong>Association</strong> <strong>of</strong><strong>Newspapers</strong> conducts Digital Hot Spotsresearch to show which countries showpromise in mobile and Internet access, which isone key indicator for showing promise for moreusage, and therefore, more rev<strong>en</strong>ue pot<strong>en</strong>tial.The WDMT Hot Spots index ranks countriesbased on mobile p<strong>en</strong>etration and Internetp<strong>en</strong>etration, dividing this data into fourcategories:• Hottest: Areas with the highest rankings.Mobile p<strong>en</strong>etration in these regions is higherthan 65 perc<strong>en</strong>t, and Internet p<strong>en</strong>etration ishigher than 40 perc<strong>en</strong>t.• Hot in mobile: Areas with high rankings inmobile p<strong>en</strong>etration, but not the Internet.Mobile p<strong>en</strong>etration in these regions is higherthan 65 perc<strong>en</strong>t, but Internet p<strong>en</strong>etration islower than 40 perc<strong>en</strong>t.• Hot in Internet: Areas with high rankings inInternet p<strong>en</strong>etration but not in mobile. Mobilep<strong>en</strong>etration in these regions is lower than 65perc<strong>en</strong>t, but Internet p<strong>en</strong>etration is higher than40 perc<strong>en</strong>t.• Coolest: Areas with the lowest rankings inboth categories. Mobile p<strong>en</strong>etration in theseregions is lower than 65 perc<strong>en</strong>t and Internetp<strong>en</strong>etration is lower than 40 perc<strong>en</strong>t.9
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERBy indexing key digital media categories,WDMT has found that Scandinavian countries,most Western European countries, the UnitedKingdom, the United States, Korea, Japan,Australia and New Zealand are the world’smost digital countries.Canada, Russia, Arg<strong>en</strong>tina, Chile, V<strong>en</strong>ezuela,Colombia, the United Arab Emirates, SouthAfrica, Portugal and most <strong>of</strong> the countries inEastern and C<strong>en</strong>tral Europe are not yet fullydigitised, but are either hot in mobile orInternet p<strong>en</strong>etration.However, C<strong>en</strong>tral America, parts <strong>of</strong> SouthAmerica (including Brazil), Africa (except forSouth Africa and Tunisia) and most Asiancountries (including China and India) are stillranked low in terms <strong>of</strong> digital developm<strong>en</strong>t,with mobile p<strong>en</strong>etration in these areas at lowerthan 65 perc<strong>en</strong>t and Internet p<strong>en</strong>etration atlower than 40 perc<strong>en</strong>t.The first two chapters in this report detail themedia advertising landscape, with a particularfocus on digital media. According toconsulting group PricewaterhouseCoopers(PwC), digital/mobile rev<strong>en</strong>ues are predictedto expand within 10 years, from US$12.7billion in 2002 to $153.4 billion in 2011, agrowth <strong>of</strong> more than 12-fold. These digitalrev<strong>en</strong>ues, including online subscriptions,digital mobile, TV and music downloads,video-on-demand, online ads, online/mobilevideo games and e-publishing, marksignificant, double-digit range growth eachyear.Growth in differ<strong>en</strong>t regions is consist<strong>en</strong>tly inthe double-digit range, except for in the UnitedStates in 2002, which is believed to be mostlydue to the economic fallout precipitated by theSept. 11, 2001, terrorist attacks the previousyear. During that time, digital growth was onthe rise in the early half <strong>of</strong> the year, but sloweddown in the second half. However, it stillremained at a stable double-digit increaseyear-over-year.In 2011, the online ad market is expected toreach US$73 billion, growing from just $9billion in 2002, an increase <strong>of</strong> more than eightfold.The United States repres<strong>en</strong>ts the biggestchunk, followed by Europe, the Middle Eastand Africa (EMEA), while the Asia Pacificregion is in the third spot, according to PwC.Meanwhile, the global mobile ad market isalso skyrocketing, from $1.54 billion in 2006to $13.96 billion in 2011, with an increase <strong>of</strong>more than nine-fold within five years, based ondata from research firm eMarketer.US$ millions180,000160,000140,000120,000CanadaLatin AmericaAsia PacificEMEAUnited StatesDigital/Mobile Rev<strong>en</strong>ues113,970133,699153,427100,00094,59080,00075,55860,00040,00020,0000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal12,713200270.530.015.822.9-10.06.418,853200339.731.767.661.836.248.328,565200451.8101.562.955.243.851.541,945200554.868.868.348.134.346.858,308200636.640.843.240.235.839.0200730.331.632.727.528.729.6200825.926.127.726.822.325.2200920.923.223.522.117.120.5201016.218.521.117.814.217.3201114.314.319.313.811.814.82007-11CAGR21.322.624.821.518.721.3Note: Including online subscription r<strong>en</strong>tals, digital mobile/TV downloads, video-on-demand, digital music downloads, mobile music, onlineadvertising, online video games, wireless video games. E-book, and online gamingSource: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200810
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSUS$ millions80,00070,00060,00050,000Global Internet Advertising MarketCanadaLatin AmericaAsia PacificEMEAUnited States49,50157,71965,58573,09640,00040,55830,00020,00010,0009,04711,58816,45122,91731,5930% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal200282.47.519.58.0-16.6-8.3200334.84.745.442.820.928.1200453.646.751.463.432.542.0200554.247.759.147.330.339.32006p42.625.638.745.933.937.9200737.327.327.833.725.628.4200827.321.223.125.919.422.0200921.418.017.020.114.316.6201017.715.214.315.911.813.6201115.013.612.612.99.911.52007-11CAGR23.519.018.821.516.118.3Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Global Mobile Ad Sp<strong>en</strong>ding2006 – 2011US$ million16,00014,00012,000Mobile multimedia ad sp<strong>en</strong>ding*G<strong>en</strong>eral mobile ad sp<strong>en</strong>ding**13,8622,11610,300 11,74610,0001,2956,8908,000749 9,0064,7366,0002,710421 6,1414,0001,541 215 4,3162,0001092,4961,43202006 2007 2008 2009 2010 2011Note: Numbers may not add up to total due to rounding.* Includes sp<strong>en</strong>ding on text message promotions and ad-supportedvoice minutes.** Includes sp<strong>en</strong>ding on ad placem<strong>en</strong>ts around mobile video cont<strong>en</strong>t.Source: eMarketer, Jan. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008WDMT Chapter 3 digs deeper into mediaconsumption and usage patterns, building onwhat is driving rev<strong>en</strong>ue detailed in previouschapters.According to indep<strong>en</strong>d<strong>en</strong>t media ag<strong>en</strong>cynetwork Carat, media consumption haschanged dramatically since 1900. Before 1940,media consumption was dominated by print,occupying about 10 hours per weekworldwide, or more than half <strong>of</strong> overallconsumption.Analogue television emerged in the 1940s,bringing with it the first wave <strong>of</strong> a new mediarevolution. Since th<strong>en</strong>, analogue TVdominated media consumption, and in 1980,totalled 50 hours overall. It accounted for amore than 60 perc<strong>en</strong>t share, or more than 30hours <strong>of</strong> consumption that year.The recession <strong>of</strong> analogue TV began in the1980s, aggravated after 2000, and according todata from Carat, analogue television isexpected to disappear by 2020.However, overall media consumptioncontinues to grow, thanks to the emerg<strong>en</strong>ce <strong>of</strong>various new formats. After 2000, the Internet,digital TV, wireless, games and digital radio allmarked high growth levels, and are expected topush total consumption up to 90 hours perweek in 2020. As media consumptiontransitions from analogue to digital, people aredevoting more and more time to digital mediaformats.According to MAGNA Global, digital media’sU.S. p<strong>en</strong>etration will continue to increasethroughout 2011. In 2000, mobile phonep<strong>en</strong>etration reached about 40 perc<strong>en</strong>t anddigital cable/satellite and TelcoTV p<strong>en</strong>etratedabout 20 perc<strong>en</strong>t, while all other digital mediareached less than 10 perc<strong>en</strong>t in 2000.11
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERAverage hours per week10080604020GamesWirelessOutdoorCinemaDigital RadioAnalogue RadioDigital TVAnalogue TVInternetPrintGlobal Media Consumption per Week• 2020: 80% <strong>of</strong> all media digital• 2010: 66% <strong>of</strong> all media digital• 2007: 50% <strong>of</strong> all media digital01900 1920 1940 1960 1980 2000 2020Source: Carat © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%140120100806040200U.S. Digital Media P<strong>en</strong>etration, 2000 – 20112000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011U.S. digital cable, satelliteand Telco TV householdsU.S. DVR subscriptionsU.S. VOD householdsU.S. broadband householdsU.S. satellite radiosubscriptionsU.S. HD subscriptionsU.S. digital TV shipm<strong>en</strong>tsU.S. mobile phonesubscriptionsSource: MAGNA Global © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2011, U.S. digital TV shipm<strong>en</strong>ts areexpected reach about 120 perc<strong>en</strong>t, whilemobile phone subscriptions will reach 110perc<strong>en</strong>t. Digital cable/satellite and TelcoTVhouseholds and broadband households willreach about 80 perc<strong>en</strong>t. Video-on-demand,digital video recorders, high-definition TV andsatellite radio are forecast to have a relativelylower reach by 2011, each at less than 40perc<strong>en</strong>t.Several studies outlined in Chapter 4 point outopportunities for newspapers moving forwardinto a more competitive and more digitalmedia landscape.According to Harris Interactive and InnovationMedia Consulting Group, the Internet willbecome the primary news and informationsource across sev<strong>en</strong> countries within fiveyears, while newspapers will lose thedominating position they have held for morethan a c<strong>en</strong>tury.A survey from Datran Media concludednewspapers should not stick to printadvertising as their sole rev<strong>en</strong>ue source, but toalso embrace new opportunities in digitalformats. According to the 2007 E-mailMarketing Survey, marketers would like to us<strong>en</strong>ew ad formats more than they would like touse print ads in their marketing plans for thefollowing year.More than 60 perc<strong>en</strong>t <strong>of</strong> responding marketersin the United States planned to use e-mail orsearch marketing tactics in 2007, while lessthan 20 perc<strong>en</strong>t planned to use printadvertising. Some other new formats, such asad networks and contextual targeting, were12
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSfavoured by about 30 perc<strong>en</strong>t. Online videoand mobile marketing are still in their infancy,with less than 15 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>tsplanning to use them.Studies from comScore and the NewspaperNational Network, on the other hand, point outthat newspapers migrating to online should notdrop everything on the print side, either.Keeping existing print customers happy, whileadding online customers, however, meansmore customers and a more positive rev<strong>en</strong>ueoutlook. According to the Newspaper NationalNetwork, the majority <strong>of</strong> online newspaperreaders consume printed versions regularly,and online news usage does not harm overallnewspaper consumption. Moreover, data fromcomScore pointed out that online news alsohas the opportunity to attract those who don’tread printed versions that much, or don’t readthem at all.In Chapter 5, case studies <strong>of</strong> savvy newspapercompanies that are achieving successes in thedigital ar<strong>en</strong>a are detailed, includingquadrantONE, NYTimes.com, Asahi Shimbun,Gannett Company, Inc., Agora and the E.W.Scripps Company.The <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> wishes tothank a long list <strong>of</strong> esteemed global and countryspecificresearch organisations that have sharedtheir data for the purposes <strong>of</strong> this compilation.The <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> hopesthis collection provides the reader with a clearerpicture <strong>of</strong> the digital landscape by analysing thecontext <strong>of</strong> the data, and the opportunities thetr<strong>en</strong>ds may repres<strong>en</strong>t. A list <strong>of</strong> contributingresearch houses and their corresponding Websites can be found in the app<strong>en</strong>dix at the <strong>en</strong>d <strong>of</strong>this book. Web addresses have be<strong>en</strong> provided soreaders can access a wealth <strong>of</strong> data that goeswell beyond the published charts in WDMT.(%)Future Sources <strong>of</strong> News and InformationWhat do you think your sources for news and information will be five years from now?%Online news and information sitesTV network newsCable network newsRadioMajor daily newspapersLocal community newspapersMagazinesNational daily newspapersSchool & work newslettersOther sourcesUSA262215111063314UK26334144321113France26241116524615Base: 8,749 adults in five EU countries, US and Australia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Harris Interactive/Innovation Media Consulting Group, Newspaper Readership Survey 2007Italy392289444812Spain2817101510231212Germany23266171234513Australia30305131042412% <strong>of</strong> respond<strong>en</strong>ts908070605040302010083.2E-mailmarketingAdvertising Tactics U.S. Marketers Plan to Use Next Year,Dec. 200661.7Searchmarketing36.2Displayads31.9Adnetworks27.7 27.7ContextualtargetingTraditionaldirect19.1Printadvertising14.9Onlinevideo10.6MobilemarketingSource: Datran Media “The 2007 Email Marketing Survey: Looking Forward,” February 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20084.3RSS13
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERPrinted Newspaper ReadershipAmong Online <strong>Newspapers</strong>Readers, U.S.Wh<strong>en</strong> was the last time you reador looked at the printed copy ?Time Sp<strong>en</strong>t on Newspaper MediaAmong Crossover Users, U.S.Since you began using a newspaper Web site,has your combined time sp<strong>en</strong>t withprint and Web-based newspaper media?Read longerthan 30 days ago7%Never read3%Decreased12%Don’t know1%Read 8-30days ago9%Readlast 7 days81%Increased35%Remainedthe same52%Base: 710 online newspapers readersSource: Newspaper National Network LP / Scarborough Research,the 2007 Newspaper National Network Integrated NewspaperFootprint Study© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Base: 576 readers who read both online and printed newspapersSource: Newspaper National Network LP / Scarborough Research,the 2007 Newspaper National Network Integrated NewspaperFootprint Study© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Visits to U.S. News SitesAmong Print Newspaper ReaderSegm<strong>en</strong>ts, Summer 2007Print news brandsNYTimes.comWSJ.comWashingtonpost.comLA TimesChicago TribuneTV news brandsMSNBCCNNFoxnews.comCBS News DigitalABC News DigitalInternet news brandsGoogle News SearchAOL NewsYahoo! NewsTopix.comDigg.comComposition IndexHeavy Medium Light1031471091091069982104113948210994827585415898949593901068899991061051029111910195931129082110849510699116122Nonreaders104106951121081061091291151021189499124102WDMT is a work in progress. As years go on,we will continue to illuminate the emerg<strong>en</strong>ce<strong>of</strong> many more digital channel frontiers.We rely on the sources <strong>of</strong> data and theg<strong>en</strong>erosity <strong>of</strong> research houses in order to acton our commitm<strong>en</strong>t to bring the widest array<strong>of</strong> information to our publisher colleagues.To contribute research to this compilation,please contact Martha Stone, director <strong>of</strong> the<strong>World</strong> <strong>Association</strong> <strong>of</strong> Newspaper’s Shapingthe Future <strong>of</strong> the Newspaper project, atmstone@wan.asso.fr.Base: Total U.S. 18+, Home/Work LocationsSource: comScore Plan Matrix© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200814
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDS1. Global Media AdvertisingLandscapeData from a variety <strong>of</strong> research firms aroundthe world shows that media industryadvertising sp<strong>en</strong>d has be<strong>en</strong> on the rise over thepast decade, and projects an upward tr<strong>en</strong>d forthe foreseeable future. Although predictionsmay vary somewhat from one research houseto another, all the sources estimate global adsp<strong>en</strong>d will reach at least US$450 billion by theyear <strong>of</strong> 2010. These figures, detailed further inthis report, include:• PriceWaterhouseCoopers (PwC) reportsglobal advertising has grown steadily since2002, and predicted it will reach US$500billion in 2010, with an average compoundedannual growth rate <strong>of</strong> 5.4 perc<strong>en</strong>t from 2007 to2011.• According to IBM Institute for BusinessValue, global advertising sp<strong>en</strong>ding willincrease from less than US$300 billion in 2002to more than $450 billion in 2010.• Research firm Z<strong>en</strong>ithOptimedia estimatedglobal advertising exp<strong>en</strong>diture will exceedUS$482 billion this year and reach $539billion in 2010.Wh<strong>en</strong> overall advertising growth is looked atby sector, research firms agree that Internetadvertising exp<strong>en</strong>ditures around the world aregrowing at a much faster rate than othersectors. In 2002, online advertising claimedonly a 2.8 perc<strong>en</strong>t share <strong>of</strong> the overall globalad market share. However, as room for growthis much larger on the Internet than in othersectors, this number will reach 10.8 perc<strong>en</strong>t bythe <strong>en</strong>d <strong>of</strong> 2008 and climb to 13.8 perc<strong>en</strong>t in2011, auditing firm PwC has forecast.While the Internet’s surge comes as nosurprise, its ability to garner billions <strong>of</strong> dollars<strong>of</strong> advertising rev<strong>en</strong>ue has come at the exp<strong>en</strong>se<strong>of</strong> traditional media, including television,newspapers, magazines and radio. <strong>Newspapers</strong>claimed 31.5 perc<strong>en</strong>t <strong>of</strong> the advertising sectorglobally in 2002. That number has dropped to26.5 perc<strong>en</strong>t in 2008, and will continue todecrease, but at a slower rate, to 25 perc<strong>en</strong>t in2011, PwC predicts. Magazines and radio arealso losing market share, with magazinesprojected to slip from 14.2 perc<strong>en</strong>t in 2002 to12 perc<strong>en</strong>t by 2011, and radio projected to dropfrom 8.9 perc<strong>en</strong>t in 2002 to 7.3 perc<strong>en</strong>t in 2011.Focusing on newspapers, growth in print15
DECEMBER 2006SHAPING THE FUTURE OF THE NEWSPAPERGlobal Advertising Sp<strong>en</strong>ding and Market Share: Internet and <strong>Newspapers</strong>US$ millions140,000<strong>Newspapers</strong> ad exp<strong>en</strong>diture (US$ millions)<strong>Newspapers</strong> market share (%)Internet ad exp<strong>en</strong>diture (US$ millions)Internet market share (%)(%)35120,00030100,0002580,0002060,0001540,0001020,0005002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Sources: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008advertising exp<strong>en</strong>ditures have be<strong>en</strong> slow inmany markets around the world. The Internet’srise has be<strong>en</strong> a new opportunity to monetise onyet another platform, cultivating new and wideraudi<strong>en</strong>ces, str<strong>en</strong>gth<strong>en</strong>ing newspaper brandsonline and seeing reach for both cont<strong>en</strong>t andadvertising that was unheard <strong>of</strong> in the past.Opportunities for growing Internet advertisingexp<strong>en</strong>ditures are especially strong in WesternEurope, the Asia Pacific and North America,where online developm<strong>en</strong>t is booming.According to these research houses, Internetadvertising is growing at a fantastic rate acrossthese regions, while its market share has gonefrom less than a one perc<strong>en</strong>t share in 1996, tomore than 10 perc<strong>en</strong>t in 2010. Growth in WesternEurope makes for an especially promisingopportunity, as the Internet is expected to havea more than 15 perc<strong>en</strong>t market share in 2010.In many areas around the world, the online adsector is not making up for print losses fast<strong>en</strong>ough; however, it is a transition period thatcan be managed by an industry that hasremained virtually unchanged for hundreds <strong>of</strong>years, and has the history and solid foundationthat l<strong>en</strong>ds itself to growth and revitalisation.While opportunities online do not come withoutdifficulties, understanding tr<strong>en</strong>ds in rev<strong>en</strong>uestream growth both now and in the future,especially on the Internet, means newspapershave the tools to decide their futures, mappingout the growth and possibilities ahead.Share <strong>of</strong> Global Entertainm<strong>en</strong>t and Media Market: 2003, 2007 and 2011 (%)20032007 201114.46.3 6.6 6.511.97.1 6.5 5.5 5.31.71.611.97.3 6.311.61.59.77.86.1235.28.110.7Filmed <strong>en</strong>tertainm<strong>en</strong>tTN networks broadcast and cableTV distributionRecorded musicRadio/Out-<strong>of</strong>-home advertising8.3126.85.82.5Internet advertisingand access sp<strong>en</strong>dingVideo gamesBusiness informationMagazine publishingSource: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200813.711.32.34.77.410.265.72.516.912.82.14.5Newspaper publishingBook publishingTheme parks and amusem<strong>en</strong>t parksCasino and other regulated gamingSports16
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSGlobal Entertainm<strong>en</strong>t and Media Market by Segm<strong>en</strong>tUS$ million2,500,0002,000,0001,500,0001,000,000SportsCasino and other regulated gamingTheme parks and amusem<strong>en</strong>t parksBook publishingNewspaper publishingMagazine publishingBusiness informationVideo gamesInternet advertising and access sp<strong>en</strong>dingRadio/Out-<strong>of</strong>-home advertisingRecorded musicTV distributionTN networks broadcast and cableFilmed <strong>en</strong>tertainm<strong>en</strong>t1,956,0671,850,5071,732,0661,635,2831,257,520 1,335,689 1,432,395 1,526,1721,104,687 1,161,258500,00002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008%30Growth <strong>of</strong> Global Entertainm<strong>en</strong>t and Media Market, by Segm<strong>en</strong>tFilmed <strong>en</strong>tertainm<strong>en</strong>tTN networks broadcast and cableTV distributionRecorded musicRadio/Out-<strong>of</strong>-home advertisingInternet advertising and access sp<strong>en</strong>dingVideo gamesBusiness informationMagazine publishingNewspaper publishingBook publishingTheme parks and amusem<strong>en</strong>t parksCasino and other regulated gamingSports2520151050-52002 2003 2004 2005 2006 2007 2008 2009 2010 2011-10Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008Global <strong>en</strong>tertainm<strong>en</strong>t and mediamarketThe global <strong>en</strong>tertainm<strong>en</strong>t and media markethas grown from US$1.1 trillion in 2002 to$1.53 trillion in 2007, and is expected to reach$1.96 trillion in 2011. The compound annualgrowth rate from 2007 to 2011 is about 6.4perc<strong>en</strong>t, according to PwC.Brok<strong>en</strong> down by segm<strong>en</strong>t, the biggest gains arein the Internet advertising and access sp<strong>en</strong>dingsector, which is expected to grow more thanfourfold, from $76.4 billion in 2002 to about$331.58 billion in 2011. It has the only CAGRreaching into the double digit range from 2007to 2011, at 13.4 perc<strong>en</strong>t.In terms <strong>of</strong> market share, sp<strong>en</strong>ding is expected17
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERto grow from eight perc<strong>en</strong>t in 2003 to nearly17 perc<strong>en</strong>t in 2011, making it the biggestgainer <strong>of</strong> all. TV distribution, video games andcasino are also expected to rise in this period.On the other hand, most <strong>of</strong> the traditionalmedia are predicted to continue to see declinesthrough 2011, as the whole newspaperpublishing is predicted to drop more than fourperc<strong>en</strong>t within eight years, from 14.4 perc<strong>en</strong>tto 10.2 perc<strong>en</strong>t (as illustrated on <strong>page</strong> 17),while radio/out-<strong>of</strong>-home, book publishing,magazine publishing and film <strong>en</strong>tertainm<strong>en</strong>tadvertising sp<strong>en</strong>d recess.Brok<strong>en</strong> down by region, the United States is stillthe main player in the global <strong>en</strong>tertainm<strong>en</strong>t andmedia market, and is expected to grow from$464.6 billion in 2002 to $754.2 billion in 2011.However, America’s share is expected tocontinue to fall, from 42 perc<strong>en</strong>t in 2002 to aprojected 38.6 perc<strong>en</strong>t in 2011.Europe, the Middle East and Africa (EMEA)are still ranked in second place, but they arealso projected to lose ground gradually – from33.5 perc<strong>en</strong>t to 31.5 perc<strong>en</strong>t betwe<strong>en</strong> 2002 to2011. On the other hand, the Asia Pacific areaUS$ million2,000,0001,500,0001,000,000Global Entertainm<strong>en</strong>t and Media Market by RegionCanadaLatin AmericaAsia PacificEMEAUnited States1,104,687 1,161,258 1,257,120 1,335,689 1,432,3951,956,0671,850,5071,732,0661,635,2831,525,172500,0000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal20026.7-3.44.64.34.74.420036.73.06.54.45.15.120046.910.810.67.77.68.320053.511.88.86.34.76.22006p6.711.510.06.95.97.220076.09.410.35.55.16.520086.49.611.25.96.07.220095.68.88.45.24.95.920105.39.49.36.25.86.820114.67.39.04.44.75.72007-11CAGR5.68.99.65.55.36.4Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%Share <strong>of</strong> Global Entertainm<strong>en</strong>tand Media Market by RegionUS EMEA Asia PacificLatin America Canada4542,14041,239,7 38,635 33,5 33,1 32,3 31,530252422,319,1 20,220151052,8 3 3,2 3,502,6 2,5 2,5 2,42002 2005 2008 2011Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%4035302520151050Share <strong>of</strong> Global Advertisingby Sector36,931,5TV <strong>Newspapers</strong> MagazinesRadio Out-<strong>of</strong>-home Internet37,6 37,929,626,514,2 13,4 14,212,48,3 10,88,97,55,72,8 6 5,7 5,82002 2005 2008 201137,12513,8127,36Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200818
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS<strong>of</strong> the world is growing strongly and gainingits share – from $210.8 billion, or 19.1 perc<strong>en</strong>tin 2002, to $470.4 billion, or 24 perc<strong>en</strong>t in2011. Its compound annual growth rate is alsothe highest, about 9.5 perc<strong>en</strong>t annually from2007 to 2011. Meanwhile, Latin Americacontinues to grow slowly and is predicted toaccount for 3.5 perc<strong>en</strong>t in 2011, only slightlyhigher than Canada, which has lost ground inrec<strong>en</strong>t years.Global advertising by categoryGlobal advertising has grown steadily since2002, and is expected to reach US$500 billionin 2010, with an average CAGR <strong>of</strong> 5.4 perc<strong>en</strong>tfrom 2007 to 2011, according to PwC.Television is the largest contributor, at $119.9billion in 2002, and expected to reach $196.9billion in 2011. It remains responsible for thebiggest share throughout the time,around 37 perc<strong>en</strong>t.US$ million600,000500,000400,000300,000Global Advertising by Segm<strong>en</strong>tOut-<strong>of</strong>-Home MagazinesRadio Internet458,014 478,784<strong>Newspapers</strong> Television325,025 336,840 364,706 383,565 407,457 427,473507,728 530,970200,000100,0000% annual changeOut-<strong>of</strong>-HomeRadio<strong>Newspapers</strong>MagazinesInternetTelevisionTotal20020.73.9-2.6-5.4-8.34.1-0.120033.82.22.51.528.14.93.620046.44.54.94.942.010.68.320056.82.33.24.939.33.55.22006p6.32.12.33.337.96.66.2Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200820076.62.71.43.228.43.94.920087.43.32.83.722.08.87.120096.53.72.74.016.62.74.520106.14.33.34.213.66.76.020115.94.43.23.911.53.44.62007-11CAGR6.53.72.73.818.35.15.4US$ billion450400350300250200150100505.7%Global Advertising Sp<strong>en</strong>ding by Category5.9%02002 2003 2004 2005 2006 2007F 2008F 2009F2010FNew adformats22.4%Traditionalad formats4.4%CAGR(2006-2010)Mobile advertising 41Global Internet 20Interactive TV promotions 19In-game advertising 19U.S. product placem<strong>en</strong>t 20Global cable/multichannel 5Global broadcast 5U.S. MSO advertising 5Global radio and outdoor 5Global magazine 4Global newspaper 2U.S. local station 2Source: IBM Institute for Business Value analysis based on an amalgamation <strong>of</strong> industry forecast, “The <strong>en</strong>d <strong>of</strong> advertising as we know it”, 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200819
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER<strong>Newspapers</strong>, although still growing ad rev<strong>en</strong>uesfrom $102.5 billion in 2002 to $132.7 billion in2011, continue to lose market share. Othertraditional media such as magazines and radio arealso experi<strong>en</strong>cing share decline, from 14 perc<strong>en</strong>t and9 perc<strong>en</strong>t, to 12 perc<strong>en</strong>t and 7 perc<strong>en</strong>t, respectively.The most growth is happ<strong>en</strong>ing in the Internetsector, which is predicted to surge from $9billion in 2002 to $73.1 billion in 2011. ItsCAGR from 2007 to 2011 will be three timesmore than the average, PwC has forecast, withits share jumping from less than three perc<strong>en</strong>tin 2002 to nearly 14 perc<strong>en</strong>t in 2011, and isexpected to continue rising.However, according to figures from IBM,global advertising sp<strong>en</strong>ding will increase fromless than US$300 billion in 2002 to more than$450 billion in 2010, with a steady annualgrowth rate <strong>of</strong> over 5.7 perc<strong>en</strong>t. After 2006, thetotal growth rate has be<strong>en</strong> increasing by anaverage <strong>of</strong> about 5.9 perc<strong>en</strong>t per year, due tothe acceleration <strong>of</strong> digital media.In terms <strong>of</strong> compound annual growth rates,new media formats, including mobile andonline, outperform more traditional media,such as press and radio. New ad formats have amuch higher CAGR from 2006 to 2010, with22.4 perc<strong>en</strong>t, compared with the 4.4 perc<strong>en</strong>tfor traditional formats.Mobile advertising is on top, with 41 perc<strong>en</strong>tCAGR. Other new ad formats, such as theInternet, interactive TV promotions and ingameadvertising, all have nearly 20 perc<strong>en</strong>tCAGR. The CAGR <strong>of</strong> traditional ad formats,on the contrary, lag behind with less than fiveperc<strong>en</strong>t, except for U.S. product placem<strong>en</strong>t,which has a CAGR <strong>of</strong> 20 perc<strong>en</strong>t. Press media,including magazines and newspapers, arestagnant, with only four perc<strong>en</strong>t and twoperc<strong>en</strong>t CAGR from 2006 to 2010,respectively.Global advertising by regionGlobal advertising exp<strong>en</strong>ditures are forecast toexceed US$482 billion by the <strong>en</strong>d <strong>of</strong> 2008,nearly double the $243 billion sp<strong>en</strong>t in 1995,and are predicted to reach $539.2 billion in2010, according to Z<strong>en</strong>ithOptimedia.Of all the regions, North America accounts forthe biggest part <strong>of</strong> ad exp<strong>en</strong>ditures throughoutthe years, although its share has be<strong>en</strong> slightlydropping, from 46 perc<strong>en</strong>t in 2000, and isexpected to continue to drop to about 38perc<strong>en</strong>t in 2010. Sp<strong>en</strong>ding, however, will growfrom $102 billion in 1995 to $207.458 in 2010,about two folds growth.Western Europe is the second biggestcontributor to total ad exp<strong>en</strong>diture, but itsshare is expected to drop to 23 perc<strong>en</strong>t in2010, from 28 perc<strong>en</strong>t in 1995. Sp<strong>en</strong>ding, likeNorth America, will continue to grow, from$67.7 billion in 1995 to $125.2 in 2010.500,000Advertising Exp<strong>en</strong>diture by Region, 1995-2010US$ million at curr<strong>en</strong>t pricesNorthAmericaWesternEuropeYOY growth %600,000AsiaLatin40PacificAmericaC<strong>en</strong>tral& Eastern Europe30400,000300,000200,00020100-10100,000-2001995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010-30Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200820
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSShare <strong>of</strong> Advertising Exp<strong>en</strong>ditureby Region%50454035302520151050North AmericaAsia PacificC<strong>en</strong>tral & Eastern Europe424628 2743Source: Z<strong>en</strong>ithOptimedia© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20083823The Asia Pacific region has be<strong>en</strong> contributingabout one-fifth <strong>of</strong> the world’s total adexp<strong>en</strong>ditures throughout the years. Itssp<strong>en</strong>ding will continue to grow, from $54.6billion in 1995 to $116 billion in 2010.The area with the most pot<strong>en</strong>tial for growth isC<strong>en</strong>tral and Eastern Europe, with double-digitgrowth almost every year since 1996. Its sharehas jumped from two perc<strong>en</strong>t in 1995, and isexpected to continue to do so, to eight perc<strong>en</strong>tin 2010, surpassing Latin America. The adexp<strong>en</strong>diture in C<strong>en</strong>tral and Eastern Europe isskyrocketing, from just $4.3 billion in 1995, toa predicted $43.3 in 2010, growing more thant<strong>en</strong>fold.25Western EuropeLatin AmericaRest <strong>of</strong> the world221921 225 845241995 2000 2005 2010<strong>Newspapers</strong> and television are the two types<strong>of</strong> media with most advertising market shareacross the contin<strong>en</strong>ts, but are both losingground gradually. Meanwhile, Internetadvertising is booming in the three regions,in terms <strong>of</strong> its growth and increase in marketshare.Internet advertising has surged across theseregions. Meanwhile, its market share hasgone from less than a one perc<strong>en</strong>t share in1996, to more than 10 perc<strong>en</strong>t in 2010.Asia PacificAccording to Z<strong>en</strong>ithOptimedia, advertisingsp<strong>en</strong>ding in Asia Pacific will double within 15years, from $58.1 billion in 1996 to nearly$117 billion in 2010. In terms <strong>of</strong> growth,cinema and Internet advertising have boomeddramatically, with a more than 700 perc<strong>en</strong>tincrease in cinema, and an increase <strong>of</strong> morethan 100,000 perc<strong>en</strong>t in Internet. TV,outdoor/others and radio are still growingstrong, by more than 70 perc<strong>en</strong>t from 1996 to2010. Although the newspaper industry hasbe<strong>en</strong> facing chall<strong>en</strong>ges in the past years insome parts <strong>of</strong> the world, its growth continuesto be remarkable in the Asia Pacific, increasingmore than 60 perc<strong>en</strong>t, higher than the othertwo contin<strong>en</strong>ts.Regarding shares <strong>of</strong> total ad sp<strong>en</strong>ding,TV has remained on top throughout theUS$ million120,000Asia Pacific Advertising Exp<strong>en</strong>diture, 1996-2010<strong>Newspapers</strong> Magazines TV Radio Cinema Outdoor/others Internet100,00080,00060,00040,00020,00001996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200821
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERyears, accounting for more than 40 perc<strong>en</strong>t<strong>of</strong> advertising exp<strong>en</strong>ditures. <strong>Newspapers</strong>,however, made up about one-third in 1996,and will continue to lose its share, droppingto about one-fourth in 2010. Outdoor/othersare more important compared to that in NorthAmerica and Western Europe, accounting forabout 10 perc<strong>en</strong>t.North AmericaIn North America, ad sp<strong>en</strong>ding w<strong>en</strong>t up fromUS$109 billion in 1996 to $207 billion in2010. Among all media, the Internet, outdoorand magazines increased most – with morethan 100 perc<strong>en</strong>t growth. For newspapers,however, growth is relatively slower, with only38 perc<strong>en</strong>t during the 15 yearsUS$ million250,000North America Advertising Exp<strong>en</strong>diture, 1996-2010<strong>Newspapers</strong> Magazines TV Radio Cinema Outdoor/others Internet200,000150,000100,00050,00001996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008US$ million140,000120,000Western Europe Advertising Exp<strong>en</strong>diture, 1996-2010<strong>Newspapers</strong> Magazines TV Radio Cinema Outdoor/others Internet100,00080,00060,00040,00020,00001996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200822
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERU.S. Advertising Sp<strong>en</strong>ding, by Media,First Half 2006 vs. First Half 2007US$ millionsTVNetwork TVCable TVSpot TVSpanish-language TVSyndication (national)Magazine mediaConsumer magazinesB2B magazinesSunday magazinesLocal magazinesSpanish-language magazinesNewspaper media<strong>Newspapers</strong> (local)National newspapersSpanish-language newspapersInternetRadio mediaLocal radioNational spot radioNetwork radioOutdoorFSIsTotalJanuary-June 200632,396.012,277.58,148.77,706.62,154.02,109.113,913.410,756.22,003.7824.3236.690.613,710.111,763.71,766.5179.94,690.45,280.53,570.41,226.0484.11,838.8954.372,783.0January-June 200731,627.711,835.98,379.07,287.62,127.51,997.114,551.711,501.91,858.9860.0228.5102.412,916.611,091.11,653.5172.05,519.05,139.83,516.21,161.0462.61,903.9934.772,593.4% change-2.4%-3.6%2.8%-5.4%-1.2%-5.3%4.6%6.9%-7.2%4.3%-4.2%13.1%-5.8%-5.7%-6.4%-4.4%17.7%-2.7%-1.5%-5.3%-4.4%3.6%-2.1%-0.3%Source: eMarketer / TNS Media Intellig<strong>en</strong>ce as cited in press release, September 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008LocalTelevision15.5%NetworkTelevision16.2%Share <strong>of</strong> Ad Sp<strong>en</strong>ding by Medium, U.S., July 2007NationalMagazines13.1%Coupons8.7%CableTelevision20.7%Internet6.9%Local<strong>Newspapers</strong>5.4%HispanicTelevision3%Other10.4%SyndicatedTelevision2.5%Outdoor2.5%LocalRadio2.8%NetworkRadio1% National<strong>Newspapers</strong>0.9%National SundaySupplem<strong>en</strong>t0.7%LocalMagazines0.1%Source: Niels<strong>en</strong>//NetRatings AdAcross © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200824
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS% <strong>of</strong> totaland US$ millionTelevision<strong>Newspapers</strong>MagazinesRadioInternetYellow <strong>page</strong>sOutdoorOtherTotal (US$ million)U.S. Advertising Sp<strong>en</strong>ding, by Media, 2007MorganStanleyOctober 200635.722.611.99.99.47.23.3–209,971MyersReportSeptember 200731.319.819.39.17.26.33.04.0230,617Opp<strong>en</strong>heimer& Co.January 200733.128.36.711.29.18.33.2–212,011UniversalMcCannJune 200723.415.84.76.93.75.0–40.5290,300Veronis SuhlerStev<strong>en</strong>sonAugust 200732.825.711.79.58.77.33.60.7218,451Source: Jack Myers Media Business Report, “Advertising and Marketing Communications Forecast 2006-2009,” September 17, 2007;Morgan Stanley, “US Internet Advertising Outlook, 2006-2010E,” October 13, 2006; Opp<strong>en</strong>heimer & Co. Inc. with company data, “The DigitalConsumer: Examining Tr<strong>en</strong>ds in Digital Media,” January 2007; Universal McCann**, “Insider’s Report: Robert Co<strong>en</strong> Pres<strong>en</strong>tation on AdvertisingExp<strong>en</strong>diture,” June 26, 2007; Veronis Suhler Stev<strong>en</strong>son, “Communication Industry Forecast 2007-2011,” August 7, 2007; eMarketer calculations,October 2007. © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Advertising in the United StatesAccording to eMarketer and TNS MediaIntellig<strong>en</strong>ce, U.S. advertising sp<strong>en</strong>ding reachedUS$72.6 billion during the first half <strong>of</strong> 2007.Compared with the same period in theprevious year, it was down 0.3 perc<strong>en</strong>t.Media reporting gains in advertising sp<strong>en</strong>dingare the Internet, magazines and outdoor. Notsurprisingly, the Internet grew the most,increasing by nearly 18 perc<strong>en</strong>t. On the otherhand, TV, radio and newspaper sp<strong>en</strong>ding hasdeclined; the drop was most serious fornewspapers, with a 5.8 perc<strong>en</strong>t recession.As <strong>of</strong> July 2007, cable TV accounted for thelargest share <strong>of</strong> U.S. ad sp<strong>en</strong>ding, with about21 perc<strong>en</strong>t, while network TV and local TVeach made up 16 perc<strong>en</strong>t. National magazineswere still strong with a 13 perc<strong>en</strong>t share andthe Internet accounted for nearly sev<strong>en</strong>perc<strong>en</strong>t. <strong>Newspapers</strong>, including local, nationaland Sunday supplem<strong>en</strong>ts, only made about asev<strong>en</strong> perc<strong>en</strong>t contribution <strong>of</strong> the overall adsp<strong>en</strong>ding, according to Niels<strong>en</strong> Online data.Differ<strong>en</strong>t sources have slightly differ<strong>en</strong>tpredictions <strong>of</strong> U.S. advertising sp<strong>en</strong>ding for2007. However, what’s consist<strong>en</strong>t is that TV isthe medium with the most sp<strong>en</strong>ding, whil<strong>en</strong>ewspapers are ranked second. The Internetstill has a lot <strong>of</strong> growing room – it made upless than 10 perc<strong>en</strong>t <strong>of</strong> the total sp<strong>en</strong>dingacross all the companies’ predictions.%100806040200U.S. Advertising Breakdown,2000, 2005, and 20086 6 5 Yellow Pages4 5 82 2Internet9 837 Outdoor7 10 10 Radio2118 Cable18Television8 723 20201924 232000 2005 2008Source: McCann Erickson / Credit Suisse Estimates© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20087MagazineNewspaperDirect MailU.S. Advertising Sp<strong>en</strong>ding Growth,by Media, 2007 – 2009%353028.52520.02015108.66.08.3 4.35 3.1 3.10 0.1-0.37-1.3 -3.2-5-4.6 -4.5-102007 2008 2009InternetMagazinesTelevisionOutdoorYellow <strong>page</strong>sNewspaperSource: Jack Myers Media Business Report, “Advertising andMarketing Communications Forecast 2006-2009,”September 17, 2007; eMarketer calculations, October 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008RadioTotal25
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERUS$ millions16,00014,00012,00010,0008,0006,0004,0002,0000CinemaInternetAdvertising Sp<strong>en</strong>ding in China by Media, 2003-200737 (0.48%)137 (1.79%)334 (4%)970 (13%)2,663 (34.8%)3,511 (45.88%)RadioOutdoorPress*Television41 (0.48%)241 (2,81%)429 (5%)1,364 (15.9%)2,491 (29.04%)4,014 (46.79%)45 (0.43%)346 (3.33%)512 (4.92%)1,723 (16.57%)2,825 (27.17%)4,945 (47.56%)51 (0.42%)529 (4.34%)652 (5.35%)1,929 (15.82%)3,038 (24.92%)5,992 (49.15%)56 (0.39%)793 (5.56%)770 (5.4%)2,218 (15.55%)3,232 (22.66%)7,190 (50.42%)2003 2004 2005 2006 2007* Includes magazine press and daily newspapers.Note: as <strong>of</strong> March 2006 sponsored search was included in the Internet estimates; numbers may not add up to total due to rounding.Source: Interdeco expert, BIPE and OMD, “Ad Barometer 2007,” November 24, 2006 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008If we examine the U.S. advertising breakdownin 2000, 2005 and 2008, we can find obviousdrops in television, newspaper and radio. Onthe other hand, Internet and cable TV bothmark a growth in share, with the Internetdoubling and cable TV growing more than 40perc<strong>en</strong>t.In terms <strong>of</strong> the annual growth rate, the Internethas more than 20 perc<strong>en</strong>t growth annuallyfrom 2007 to 2009, while all the other medialag far behind. Growth in outdoor andmagazines is slowing, with about five to nineperc<strong>en</strong>t per year, while newspapers are facinga downturn from 2007 to 2009, declining at arate <strong>of</strong> four perc<strong>en</strong>t per year, according to theJack Myers Media Business Report.Advertising sp<strong>en</strong>d in ChinaAdvertising sp<strong>en</strong>ding in China has be<strong>en</strong>growing from less than $8 billion in 2003 tomore than $14 billion in 2007. Of all themedia, TV and press accounted for the lion’sshare in 2003, with 46 perc<strong>en</strong>t and 35 perc<strong>en</strong>trespectively. However, the press has droppedmore th<strong>en</strong> 10 perc<strong>en</strong>t and had only 23 perc<strong>en</strong>tshare left in 2007, while TV is still strong, upto over half <strong>of</strong> the overall ad sp<strong>en</strong>ding inChina, according to Interdeco Ad Barometer2007.In addition, outdoor media was also gainingshare in the five years – from 13 perc<strong>en</strong>t up to15.5 perc<strong>en</strong>t. The Internet is also doing well,up from $137 million (or 1.8 perc<strong>en</strong>t) in 2003to $793 million (or 5.56 perc<strong>en</strong>t) in 2007.26
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDSUS$ millions2002 2003Converg<strong>en</strong>t Platform Market *United States% changeEMEA% changeAsia Pacific% changeLatin America% changeCanada% changeTotal% change209,7367.4139,3069.785,4899.514,002-3.713,41112.9461,9448.2224,4877.0153,35610.197,03713.515,0047.214,5598.6504,4439.2Converg<strong>en</strong>t Platform Marketvs. Other Entertainm<strong>en</strong>t and Media Platforms2004248,86710.9173,02912.8114,33117.817,35515.716,01910.0569,60112.92005263,7766.0189,0349.3131,29214.820,30317.017,0076.2621,4129.12006288,1289.2209,38710.8151,17615.123,63216.417,9915.8630,31411.12007309,5167.4229,9229.8175,05215.826,90313.819,1016.2760,49410.22008335,6118.4251,9309.6201,10814.930,55413.820,2576.1839,46010.42009356,4756.2273,4068.5226,50812.634,04511.421,4155.7911,8498.62010381,6687.1294,9977.9254,09612.238,24612.322,5245.2991,5318.72011403,3265.7315,2096.9284,30711.941,9159.623,6535.01,068,4107.82007-11CAGR7.08.513.512.15.69.1Other Entertainm<strong>en</strong>t and MediaPlatform**United States% changeEMEA% changeAsia Pacific% changeLatin America% changeCanada% changeTotal% change254,8562.7230,5341.3125,3351.417,086-3.214,9321.7642,7431.7263,6693.5232,8851.0127,5751.817,008-0.515,6785.0656,8152.2276,3644.8243,0964.4134,0265.118,1196.516,3144.1687,9194.7286,2513.6253,4004.2138,7973.619,3686.916,4610.9714,2773.8294,3202.8263,6534.0145,8065.020,5966.317,7067.6742,0813.9302,6472.8269,1842.1152,6424.721,4724.318,7335.8764,6783.0313,3373.5276,8242.8163,2066.922,4744.719,8826.7795,8234.1324,2383.5282,9622.2168,3333.123,6245.121,0605.4820,2173.1338,5354.4296,0264.6177,3505.424,8675.322,1985.4858,9764.7350,8833.6301,7091.9186,1014.925,8173.823,1474.3887,6573.3* Includes home video, TV networks, TV distribution, digital music downloads, mobile music, Internet advertising and access sp<strong>en</strong>ding, video games,business information, electronic books, and online gaming.** Includes box <strong>of</strong>fice sp<strong>en</strong>ding, physical recorded music, radio and out-<strong>of</strong>-home advertising, magazine publishing, newspaper publishing, physicalbooks, theme parks, casino gaming and legal sports wagering, and sports.Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-20083.62.75.04.65.53.627
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER28<strong>World</strong>wide Advertising Exp<strong>en</strong>diture, 1995 - 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ million at curr<strong>en</strong>t priceCanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal19954,16198,046102,2071,4591,4031,5749659,13219,9414325,9913,1701,2205304,4351,7762,78212,87067,679--45-35923-1,5752292434-43857800-5463638-4,3394,4572,0841,94686322235,034552855715026623,6412,4921,1156354,5572,8994,9654657131071,34510734589914411,99019106748-12021148-270673147-2,252243,02419964,368104,852109,2201,5241,4361,6469949,37620,2504786,4703,5061,4506324,5891,7742,71613,87670,717--38-45633-1,1153373973-663921,050-8192727-4,7964,4872,6322,1861,04327237,538667879856507144,2691,3321,25110158,1073,0885,8875728911201,7531263001,03916213,93718121806-15424160-315758183-2,539259,31619974,831112,038116,8691,6841,6371,7881,0999,72920,9925677,1043,8031,5927614,8771,9212,71715,29375,564--25-65045-1,31148769114-1,0971151,400-172114961-6,5584,9503,3592,6261,24233638,890721889998288015,0881,5721,20511162,7183,4786,6166229723222,5231353351,26317216,43824168881-16827306-324908191-2,997281,14419985,268120,743126,0111,8721,9221,8811,22010,52522,0246287,8714,2321,6979055,4452,1322,86816,78182,003--4011587157-1,51469144168-1,6072151,300-248167924-7,9625,3213,8592,7171,18424537,361597883948867463,7971,98893710960,7263,6056,4175781,1113172,6621532941,37218116,69030220864-17930450-3301,060184-3,347296,73919995,451139,935145,3862,1642,1041,8141,30911,61223,2177148,8164,5101,8401,0916,3302,1983,18817,80988,716--581381,07051-1,60982250155-2,199125573-271214941-8,2775,5554,3173,0971,32935336,6226969221031,0217655,1181,8261,26011663,1003,2334,2955571,0241702,9551802331,56317114,38035240952-18327526-3191,177184-3,643323,50120005,759156,667162,4262,3772,2841,9301,41411,78825,08097610,1254,8632,0311,2176,9492,5033,47319,47796,485-64852171,24654121,8931,06654138-2,503128826-3142321,070-9,9036,0694,9531,5471,58048739,4308479651071,1979447,1311,8401,35413168,5822,6755,3655901,0311843,4491731981,63814915,453522411,091-21328612-3771,311195-4,120356,96920015,863147,246153,1092,3982,2121,8571,34111,09923,1681,0989,7914,6602,0151,1416,7212,2293,32718,62191,678-821193171,45260151,9651,26861198-3,0881181,336-426252551-11,3095,7775,3721,6351,81860838,8258729661081,3619707,0421,9901,58714769,0762,5693,9685781,0752753,5621521841,81010014,27367291807-24632927-4171,425243-4,455343,90020026,017149,756155,7732,3362,4391,7421,32110,87821,0841,2999,4694,5362,0871,0406,6702,1423,05618,66888,765-931654041,43565202,2001,51772267-3,2291262,210-47328471916113,4395,8886,4411,8551,97182236,1369461,0161211,5141,0618,1702,0121,79116269,9065043,3136201,0183813,4471651881,8315011,51789337809-250521,084734231,70137625,196344,597
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS29<strong>World</strong>wide Advertising Exp<strong>en</strong>diture, 1995 - 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ million at curr<strong>en</strong>t priceCanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal20036,394152,282158,6772,4032,7071,7411,35411,10220,0441,4579,8184,3322,3971,0636,8592,1462,86819,21289,502-1072384871,54673222,3301,76077292-3,5941542,89032056331788125915,9086,4398,1141,8512,4651,13536,1071,0201,1471361,8391,1118,0382,2012,06321573,8818253,6806519604363,1751962231,8654312,054100329728-276651,443814761,92956625,995356,01820046,745161,487168,2322,5402,9241,8531,44311,67920,3041,74910,5154,3022,7071,1387,5802,2442,58320,99694,556391323045501,70980312,5502,10488317-4,0102263,9104508023921,29134819,3327,0789,0632,3143,0971,48737,5111,2351,2871562,2071,2798,0551,7972,39226379,2201,0014,6536981,0264803,3472232151,9114813,603143454772-335761,820896052,26777757,343382,28420057,113166,235173,3482,6773,0501,9731,49312,08420,5461,83310,8574,3903,2721,1498,2812,4742,70021,66598,443401593987061,92692362,7442,39110732091,6943085,0306219914371,68751920,2147,58910,5862,5493,5701,69438,1751,2731,3891852,7151,1738,3971,6172,52933483,7761,2716,4967761,2455783,7042372531,8364716,443118597811314395811,986947742,82397378,973401,19820067,746174,838182,5842,8323,6252,2991,54712,64021,3642,16111,0064,5823,6111,1379,0032,7852,94022,021103,550632044788322,222109552,9682,571136392131,8974206,4907141,1924731,95070723,8867,80112,6942,8764,5711,98038,3931,3301,3802382,7651,2219,0311,5862,62941888,9131,5547,3869281,4137034,1692752911,7505118,522136796814651477882,6191729883,6151,234911,599429,05320077,974179,251187,2263,0403,8342,3681,63012,94722,0052,38611,2694,7704,0161,1619,6933,0213,15523,262108,556872265309982,300137583,3062,565149434172,1105588,7031,1011,4105292,14788328,2468,38615,0233,0565,0152,27038,6291,5041,3542893,2331,2429,5361,5332,64950394,2221,7728,3121,0031,5816324,5462813201,6615620,1651441,125869854514973,2311511,1283,9511,4181813,500451,91220088,388186,585194,9723,2684,0942,4861,70313,42222,5192,59611,6164,9994,4361,18710,3433,1673,31824,711113,8651152505631,1942,437158873,5312,694163499222,32370711,2351,4481,6535652,3261,09733,0668,97418,8673,2785,8562,97139,2301,6491,3933313,7901,27310,5141,5102,787591103,0151,9368,7761,0851,7577024,9583013621,7776421,7191541,4659081,3025801093,8421581,2774,3441,7072215,868482,50420098,875192,219201,0943,3564,2242,5381,76113,92323,0472,72312,0885,1824,8771,21411,1203,3833,48926,237119,1621432735861,4352,5911801053,7442,843177564262,53284313,9081,8471,9586092,5001,31038,1729,31021,1863,4646,8993,53639,3541,7541,4253764,4551,31810,8761,4832,984690109,1112,0539,2521,1441,8847805,4313414001,7806123,1261661,8309391,7206791264,7441871,4984,7772,0882918,783509,44920109,402198,057207,4583,4894,3832,5961,81414,49623,6342,86312,6375,3865,4061,25212,0753,5703,63128,009125,2411762916031,7232,7311991253,9333,059193621322,76096116,5522,2132,2846692,6191,57043,3149,86924,2663,7358,1074,20839,4061,8921,4664085,0631,36411,7961,4413,163793116,9782,1239,7301,2061,9708655,7613164451,7806724,2631792,2519712,1797671405,6542171,7705,1472,6183721,930539,182
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER30<strong>World</strong>wide Internet Advertising Exp<strong>en</strong>diture, 1995 - 2010US$ million at curr<strong>en</strong>t priceCanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotalSource: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20081995-100100-----------------------------------------------------------------------------1001996-300300---1-----------1--------------------------14---------14------------------------31519977906913---26-------8-1330--------------------------52---------52------------------------9951998191,9201,939-3-52118-8--5628531130-----0--------------0-----98---------98---------11-------------2,1671999424,6004,642-6-89997-372527619671085484----20--------1-----326--1-207-----85-2-322--------022-------------5,4542000826,0006,082-16531518119221744847667141202041,165----41---0--6-3-----1463-106-507-----142276-761--------123--3---------38,0272001726,6006,672-14521914423241342637765121152211,090----92---1--8-6---1-264655108-632-----134264-915--------112--7------8--158,71920021317,2507,381-14701912428551254039690144162621,238----112---1--11-11---213712677108-727-----235294-1,2154-------115--9------7--169,892
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS31<strong>World</strong>wide Internet Advertising Exp<strong>en</strong>diture, 1995 - 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ million at curr<strong>en</strong>t priceCanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal20031767,7587,9341323822163030981315051594154245432,136----152---1--16118---3157178164148-1,017-5---37334501,7986556-----1169--12------7--1912,01420042718,6888,959284098296203401113483716118180231,2913,0710-2-292--1222-28235--462125292293169-1,560-10---50660902,7568777-----1194--30------17--4715,05320054189,99210,410355512547970417201731223306203268292,1404,9391032373--27320483601-51322094675411824-2,414-290--694109404,3001111211-0--711143--54------21--7520,074200675112,49013,2414691302591,310621332471724869389406413,1577,3691062905--466406961001109216383754884204633,121-421--933115415,9253012814-0--921183--70------26--9627,197200799516,11217,10694126407721,5799026336519067711553541424,3759,9973012312411--608509891714121032115731,1461,268219943,899-551-191,328129517,9753319317-0--1021255--87------28--11536,02220081,24419,17320,417127154468851,8991,24310055120592915774655515,49512,7525119314214--741080133132917161043228111,4912,0072324854,672-751-311,4901366110,1863225022-0--1221320--103------31--13444,62020091,53620,61122,147152183515982,1791,6001138482211,231231,122809586,70715,8578131415118--92141101731748514211159301,1401,6622,7092549765,334-912-501,7891436112,3145130123-0--1421393--119------34--15352,00520101,84422,61124,4551812085671082,5232,0001241,2272361,654281,627922678,04519,51610143517120--114181402252472831292766401,5651,8263,6502679575,931-1102-692,1841499114,7608533125-0--1621460--136------40--17660,933
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER32<strong>World</strong>wide Newspaper Advertising Exp<strong>en</strong>diture, 1995 - 2010Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ million at curr<strong>en</strong>t priceCanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal19951,84435,27837,1224693278615672,3729,1981961,2781,554577601,5191,1281,5655,32026,990--18-7712-153591220-728220-813257-9281,9298115635417810,02330834924973411,9191,1773111318,4831,1581,408164200393242553292363,699-54447-781311-16619292-1,05388,27619961,90337,07738,9804923238785792,4299,2082231,3851,705734591,5651,0941,4765,59227,741--13-8215-156841540-10112280-1116281-1,1061,8709746506178710,644384359291373642,1583943022618,9931,2561,483192236433333096317414,026-63465-881612-179224105-1,15291,99819972,18639,07941,2655283759356161,4759,5142951,5451,809788701,6491,1281,4766,09028,291--9-13422-1981061958-15516350-2018347-1,4532,0691,21486571511110,865432370331474073,0095562473721,0771,4601,5502182426843847107416434,590-91506-1041813-205265111-1,31397,98819982,33941,34143,6805754049766771,73710,0013101,7362,034823911,7951,2101,5366,59830,503--11719427-2451211971-14340350-2723367-1,6452,2691,3098785826910,135343353231373622,4076511763819,7311,5811,444202227764585294462434,640-117485-1112113-224303107-1,381101,57919992,39243,69746,0896824959207452,04110,2163441,9832,1208401151,9191,1871,6897,00732,303--182221725-2461392048-26516190-2826334-1,5932,3171,4091,1086581029,918401368241603843,0455803743720,8841,092975200203415256275500403,713-128542-1202114-224328105-1,482106,06420002,53148,70051,2319055119387992,26310,9075412,2812,2338671242,1231,2661,7957,85535,406-3213324525-2921571936-33620240-3029367-1,8522,5311,83770777413210,726509387391934723,5535772873722,7616541,154204203335415866489343,436-124641-143237-269365126-1,698116,38320012,50045,77848,2788933528817512,0749,7476212,1422,1458801121,9991,1281,7157,67433,114-4184924229-2451782339-34918310-3833206-1,7812,3591,97871371217810,393528394481464283,5246674354322,547808844177250415575063478163,284-163425-1712517-295372164-1,632110,63520022,53545,32047,8558574848067281,9408,7867881,9932,009925891,9211,0471,4847,53031,387-4295428730-2501882543-34620495-4043241152,0942,2542,3648517722419,206596408501404353,8924494644822,17120066418623256547456050872,50655185407-183383966312459260-2,004108,019
Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ million at curr<strong>en</strong>t priceCanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal<strong>World</strong>wide Newspaper Advertising Exp<strong>en</strong>diture, 1995 - 201020032,57846,22748,8058945927927481,8778,1709151,9831,8731,084871,8771,0541,3137,62030,877-4448030332-2962102547-49322585124948281322,5322,4513,0487781,1643079,028645448541484293,8864285246623,40333266418423068417507854962,57866188338-212456271340507379-2,208110,40420042,66348,53851,2019486668437931,9278,3651,1232,0151,8091,253891,9871,0649047,99931,786-8519334535-3612382655-61534730205959431303,1612,7172,8941,0481,3074129,079728513571694663,5135576535124,16337979620325879412505857262,81490252342-250508681424581524-2,680115,80520052,72550,23752,9611,0457439188071,9588,3551,1122,0711,7971,419882,0911,1259237,68432,135-95810135940-4132563155122934-256690599482,3672,8563,2119561,4784788,923757539641674623,5824786535924,6644411,08722830288435546056863,26977311359-2846110687582726714-3,307118,70420062,76951,49354,2611,1071,0991,0028271,9778,5641,3322,1101,8481,534842,2461,1991,0597,35733,345-116113141547-4692523458223838-3865107640642,6062,8583,9201,1261,9455898,586747526741424773,6704556126825,7985331,195248340107501586856253,61789410344-34369104157644865863-3,888123,51720072,81049,94852,7571,2071,1251,0098721,9188,6351,4532,1331,8851,687852,3811,2531,1447,22534,012-145815838654-5292523663224446-6771109660752,7462,9014,5531,1921,9187578,236829509851425273,8934336007926,6526081,41126837392557657155564,006100568345-364761001387679341,010-4,402124,57820082,84449,94852,7921,2611,1271,0199071,9238,6661,5552,1581,9411,805872,4641,2701,2017,30234,688-155418940159-5712523770325165-10076109714852,9672,9465,3991,2632,2118848,0649045121011425324,0104276189028,1046481,481290400100616737457074,258110732348-418881021458901,0281,262-5,123127,93420092,89550,69753,5921,2951,1699999351,9428,6981,6472,1881,9801,895892,5511,3021,2617,39135,341-155022741764-6032523978325975-150801137611003,1862,9785,6151,3262,4911,0527,7859675141121425374,21141764810428,9016371,555313420108684807656874,447121915349-5021041071741,0691,1301,616-6,087131,55720102,95050,69753,6471,3411,1909799521,9578,7291,7292,2132,0401,952912,6401,3371,3117,53735,999-16462724347116392534082426981-179821147721003,3573,1096,4571,3992,8061,2527,4971,0455211231425424,50540067711730,5936371,633325421116726777956884,5901321,144351-5771171132041,3041,2332,101-7,276135,461VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS33
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER34<strong>World</strong>wide Share <strong>of</strong> Ad Exp<strong>en</strong>diture: Internet, 1995 - 2010%CanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotalSource: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20081995-0.10.1-----------------------------------------------------------------------------0.01996-0.30.3---0.1-----------0.0--------------------------0.0---------0.0------------------------0.119970.20.80.8---0.20.1-------0.4-0.10.0--------------------------0.1---------0.1------------------------0.419980.41.61.5-0.1-0.40.20.1-0.1--0.50.11.30.20.20.2-----0.4--------------0.0-----0.3---------0.2---------0.60.0-------------0.719990.83.33.2-0.3-0.60.90.4-0.40.61.40.50.33.10.30.50.5----0.20.7--------0.1-----0.00.5--0.1-0.6-----1.7-0.2-0.5--------0.01.20.0-------------1.720001.43.83.7-0.72.81.01.50.80.21.71.02.30.51.05.60.61.01.2----0.41.9---0.3--0.2-0.4-----0.11.0-0.60.4-1.3-----2.01.50.4-1.1--------0.01.50.0--0.3---------0.12.220011.24.54.4-0.62.81.41.31.00.31.40.61.80.61.05.40.51.21.2----0.62.5---0.9--0.3-0.4---0.2-0.20.81.00.60.4-1.6-----1.91.30.2-1.3--------0.01.00.0--0.8------0.5--0.22.520022.24.84.7-0.64.01.41.11.40.41.30.91.90.61.36.70.51.41.4----0.72.4---1.2--0.3-0.5---0.20.60.32.11.20.50.4-2.0-----2.91.50.2-1.70.7-------0.01.00.0--1.1------0.4--0.32.9
Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%CanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal<strong>World</strong>wide Share <strong>of</strong> Ad Exp<strong>en</strong>diture: Internet, 1995 - 201020032.85.15.00.50.84.71.65.71.50.51.31.12.10.51.47.20.82.82.4----1.03.1---1.9--0.40.30.6---0.30.40.42.82.00.80.3-2.8-0.5---4.61.50.20.12.40.71.51.0-----0.11.90.6--1.7------0.4--0.33.420044.05.45.31.11.45.32.05.31.70.61.31.92.60.51.68.00.96.13.20.9-0.6-1.73.0--0.61.80.6-0.70.70.9--1.00.40.40.64.13.20.70.3-4.2-0.8---6.33.40.40.13.50.81.71.0-----0.11.70.7--3.9------0.7--0.63.920055.96.06.01.31.86.33.28.02.01.11.62.810.10.52.410.81.19.95.01.80.10.80.21.93.5--1.12.50.60.42.80.91.20.1-1.30.80.41.06.25.10.70.7-6.3-2.10.2--8.36.70.20.15.10.91.71.4-0.0--2.80.11.70.9--6.6------0.7--0.85.020069.77.17.31.62.513.13.810.42.91.52.23.813.50.84.314.61.414.37.11.90.21.30.34.04.9--1.84.30.90.43.71.31.50.20.91.81.10.81.69.77.00.71.00.28.1-3.10.3--10.37.30.20.16.71.91.71.5-0.0--3.10.11.81.0--8.6------0.7--0.86.3200712.59.09.13.13.317.24.412.24.12.63.24.016.91.05.717.91.318.89.23.40.22.20.35.47.7--2.35.41.10.44.71.62.00.40.91.91.51.22.013.78.40.72.00.210.1-4.10.3-1.513.98.40.20.18.51.92.31.7-0.0--3.10.11.81.3--10.0------0.7--0.98.0200814.810.310.53.93.818.85.014.25.53.94.74.120.91.37.520.71.522.211.24.30.33.40.35.88.6--2.86.11.60.55.71.82.60.51.01.81.82.02.516.610.60.74.20.211.9-5.40.4-2.514.29.00.20.19.91.62.92.0-0.0--3.30.11.91.5--11.4------0.7--0.89.2200917.310.711.04.54.320.35.615.76.94.17.04.325.21.910.123.91.725.613.35.60.45.20.35.89.9--3.27.71.90.76.82.13.50.81.11.92.42.33.017.812.80.77.20.213.6-6.40.5-3.816.49.60.20.111.32.53.22.0-0.0--3.50.11.81.7--12.7------0.7--0.810.2201019.611.411.85.24.821.85.917.48.54.39.74.430.62.313.525.81.828.715.65.70.47.10.36.310.2--3.79.22.30.78.12.54.41.41.24.02.52.53.618.515.00.79.80.215.1-7.50.5-5.118.510.30.30.212.64.03.42.1-0.0--3.60.11.81.9--14.1------0.8--0.811.3VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS35
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER36<strong>World</strong>wide Share <strong>of</strong> Ad Exp<strong>en</strong>diture: <strong>Newspapers</strong>, 1995 - 2010%CanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotalSource: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008199544.336.036.332.223.354.758.726.046.145.421.349.047.311.334.263.556.341.339.9--38.8-21.455.2-9.725.749.659.5-16.413.227.5-15.120.140.3-21.443.338.929.062.735.028.655.840.934.119.251.552.747.227.920.533.939.928.435.328.136.524.123.415.432.525.030.9-51.259.7-64.562.17.3-61.328.562.7-46.736.3199643.635.435.732.222.553.458.225.945.546.721.448.650.69.334.161.754.340.339.2--34.4-17.945.8-14.025.039.054.5-15.313.026.7-13.717.138.7-23.141.737.029.759.131.928.457.640.834.021.050.950.629.624.125.732.740.725.233.626.535.819.023.832.030.525.328.9-51.957.7-57.068.27.5-56.829.657.4-45.435.5199745.234.935.331.322.952.356.015.245.352.021.747.649.59.333.858.754.339.837.4--35.6-20.747.9-15.121.928.451.1-14.113.825.0-11.815.436.1-22.241.836.232.957.633.027.959.941.632.717.750.859.135.420.533.333.642.023.435.124.921.217.435.231.932.925.027.9-54.057.4-62.264.44.2-63.129.258.2-43.834.8199844.434.234.730.721.051.955.516.545.449.422.148.148.510.033.056.753.639.337.2--28.15.922.346.9-16.217.542.141.9-8.918.626.9-11.013.939.7-20.742.633.932.349.128.227.157.539.924.015.548.563.432.718.834.932.543.922.535.020.424.017.234.032.033.723.827.8-53.156.1-62.169.42.9-67.828.658.0-41.334.2199943.931.231.731.523.550.756.917.644.048.222.547.045.610.530.354.053.039.336.4--30.315.820.247.8-15.316.939.530.7-12.112.833.2-10.512.135.5-19.241.732.635.849.528.927.157.639.923.015.750.159.531.829.731.933.133.822.736.019.824.117.834.232.232.023.425.8-53.656.9-65.576.52.6-70.327.957.2-40.732.8200044.031.131.538.122.448.656.519.243.555.422.545.942.710.230.550.651.740.336.6-4.524.615.119.645.6-15.414.736.025.9-13.415.729.1-9.512.334.3-18.741.737.145.749.027.027.260.140.136.816.150.049.831.321.228.233.224.521.534.519.717.915.733.533.329.922.822.2-51.458.7-67.382.71.2-71.227.964.6-41.232.6200142.631.131.537.215.947.456.018.742.156.621.946.043.79.829.850.651.541.236.0-5.415.415.416.648.0-12.514.037.119.8-11.315.223.2-8.913.037.4-15.740.836.843.639.229.326.860.540.744.410.844.150.033.527.429.332.631.521.330.623.314.915.632.934.226.416.023.0-56.252.6-69.575.91.8-70.626.167.4-36.632.1200242.130.330.736.719.946.355.117.841.760.721.144.344.38.628.848.948.640.335.2-4.217.513.320.045.2-11.412.434.816.1-10.715.922.4-8.515.133.59.615.638.336.745.939.229.325.563.040.141.69.241.047.622.325.929.631.739.720.130.022.814.715.927.331.927.714.021.862.055.150.3-73.372.23.691.273.827.069.2-38.631.3
Source: Z<strong>en</strong>ithOptimedia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%CanadaUSANorth AmericaAustriaBelgiumD<strong>en</strong>markFinlandFranceGermanyIrelandItalyNetherlandsNorwayPortugalSpainSwed<strong>en</strong>SwitzerlandUKWestern EuropeBelarusBosnia & HerzegovinaBulgariaCroatiaCzech RepublicEstoniaGeorgiaGreeceHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSerbiaSlovakiaSlov<strong>en</strong>iaTurkeyUkraineC<strong>en</strong>tral & Eastern EuropeAustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandVietnamAsia PacificArg<strong>en</strong>tinaBrazilChileColombiaEcuadorMexicoPanamaPeruPuerto RicoUruguayLatin AmericaBahrainEgyptIsraelKazakhstanKuwaitOmanPan ArabQatarSaudi ArabiaSouth AfricaUAEUzbekistanMiddle East and AfricaTotal<strong>World</strong>wide Share <strong>of</strong> Ad Exp<strong>en</strong>diture: <strong>Newspapers</strong>, 1995 - 2010200340.330.430.837.221.945.555.216.940.862.820.243.245.28.227.449.145.839.734.3-3.318.716.519.644.3-12.712.032.316.0-13.714.320.23.68.815.231.912.215.938.137.642.047.227.025.063.239.039.58.138.648.319.525.430.831.740.218.028.324.015.613.125.535.029.414.021.466.657.246.5-76.769.14.388.171.426.367.0-36.831.0200439.530.130.437.322.845.555.016.541.264.219.242.146.37.926.247.435.038.133.4-5.916.616.920.244.5-14.111.329.917.4-15.315.218.74.47.415.133.48.516.438.431.945.342.227.724.259.039.936.57.736.443.631.027.319.430.537.917.129.125.216.512.322.427.029.912.520.763.155.544.4-74.664.94.791.470.125.667.5-36.530.2200538.330.230.639.024.446.654.016.240.760.619.140.943.47.625.245.434.235.532.5-5.514.514.318.644.0-15.010.729.317.214.313.511.2-4.16.720.635.59.211.737.630.337.541.428.223.459.538.834.76.139.442.729.625.817.829.434.716.729.424.315.311.822.823.730.911.619.965.552.144.2-72.075.65.391.975.225.773.3-36.829.5200635.729.529.739.130.343.653.415.640.161.719.240.342.57.425.043.136.033.432.0-5.512.715.818.743.0-15.89.824.914.714.112.59.0-5.35.522.632.89.110.936.630.939.242.629.722.456.238.131.35.139.140.628.723.316.329.034.316.226.724.015.212.021.123.432.110.519.565.351.642.3-71.979.14.091.365.323.970.0-33.528.7200735.227.928.239.729.342.653.514.839.260.918.939.542.07.324.641.536.231.131.1-6.111.015.816.839.5-16.09.824.014.414.111.68.1-6.15.020.630.78.59.734.630.339.038.233.321.355.137.629.34.442.440.828.222.615.628.334.317.026.723.614.612.223.122.233.411.319.969.750.539.8-70.879.13.191.968.023.771.2-32.627.5200833.926.827.138.627.541.053.314.338.559.918.638.840.77.423.840.136.229.530.2-6.09.615.816.537.1-16.29.422.914.113.810.89.1-6.94.619.330.77.79.032.828.638.537.829.820.654.836.730.43.741.838.128.322.215.327.333.516.926.722.714.212.424.320.432.111.219.671.350.038.4-72.180.52.792.269.723.774.0-32.326.4200932.626.426.738.627.739.353.113.937.760.518.138.238.97.322.938.536.128.229.4-5.58.515.816.135.9-16.18.921.913.813.410.28.9-8.14.118.530.47.68.332.026.538.336.129.819.855.236.129.93.240.838.728.121.715.026.531.016.827.322.313.812.623.519.031.911.419.272.850.037.2-73.982.42.393.371.323.777.4-32.425.8201031.425.625.938.427.237.752.513.536.960.417.537.936.17.321.937.536.126.928.5-5.67.715.815.935.60.816.38.320.613.113.49.78.4-8.13.617.029.56.47.731.526.637.534.629.819.055.235.530.22.839.838.227.721.414.726.230.016.827.021.413.512.624.317.831.911.518.973.850.836.1-75.383.72.094.173.624.080.3-33.225.1VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS37
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER(%)AfricaEgyptK<strong>en</strong>ya (1)Nigeria (1)South AfricaAmerica NorthCanadaCosta Rica (1)(2)Honduras (1)MexicoPanamaPuerto RicoU.S.A.America SouthArg<strong>en</strong>tinaBolivia (3)BrazilChileColombiaEcuador (2)PeruUruguayV<strong>en</strong>ezuelaAsiaBahrain (1)CambodiaChinaHong KongIndiaIndonesiaIsraelJapanJordan (3)Korea (Republic <strong>of</strong>)KuwaitLaosLebanon (2)MalaysiaMyanmarOmanPakistanPhilippinesQatarSaudi Arabia/Pan-ArabSingaporeSri LankaTaiwanThailandTurkeyUnited Arab EmiratesVietnamAustralia & OceaniaAustraliaNew Zealand55.136.449.527.043.629.131.615.927.327.730.339.7–20.130.022.814.731.914.024.540.35.637.145.939.226.850.325.5–47.969.919.18.763.08.872.133.49.288.621.941.025.022.325.933.563.029.638.340.17.13.41.212.5Advertising Exp<strong>en</strong>diture Share (Table 1)TV37.624.633.043.25.0 41.9– –9.5 60.84.2 49.66.2 60.82.9 72.42.7 42.60.0 50.02.6 59.79.8 47.2– 85.13.0 45.511.8 30.98.0 41.94.0 64.26.7 28.99.6 46.0– –4.2 31.314.0 2.915.7 42.06.0 74.54.6 26.526.3 50.97.0 20.98.8 47.62.5 70.81.6 9.811.1 63.03.9 41.3– 40.012.6 58.25.4 55.04.3 48.415.7 9.00.0 55.510.1 36.411.1 33.02002Radio Cinema Outdoor Internet0.234.74.812.57.35.90.69.60.02.814.028.849.665.760.268.560.334.514.315.42.114.44.26.513.04.4–4.69.510.210.011.214.04.91.2–4.34.82.93.27.44.4–3.01.110.03.74.1––2.717.5–1.57.725.05.59.15.05.21.39.013.0–0.9–0.7–––––0.60.21.7––0.4–––1.03.8–––0.20.70.10.4––––0.9–0.31.8–0.5–––0.8––0.90.8––0.70.50.0–11.53.73.6––0.00.02.03.36.5–5.16.40.0–11.720.04.50.39.310.05.97.01.85.212.5–11.212.112.27.11.412.30.06.90.0–2.55.310.00.03.57.77.013.63.32.40.0––0.42.3––0.00.00.04.80.7–0.00.00.0–0.01.00.01.2–0.00.50.40.01.12.0–2.40.0––0.0–0.0–0.0–0.00.0–1.50.20.20.00.02.10.0“<strong>Newspapers</strong>” includes “Magazines” in Bosnia & Herzegovinia, Cambodia and Sri Lanka.* Forecast“Outdoor” includes “Other Media” in China, D<strong>en</strong>mark, France Japan, Republic <strong>of</strong> Korea, Luxembourg, Philippines, Russia and the USA.(1) 2002 figures actually refer to 2001 – (2) 2006 figures actually refer to 2005 – (3) 2006 figures actually refer to 2003Source: <strong>World</strong> Press Tr<strong>en</strong>ds 2007, <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200848.8––26.636.236.5–12.322.831.829.534.74.516.229.927.015.322.510.523.469.0–31.939.142.225.542.022.870.942.273.9–24.057.5–79.5–5.193.024.539.1–29.623.931.078.216.336.538.0<strong>Newspapers</strong>2006* 2009*<strong>Newspapers</strong>Radio Cinema Outdoor InternetMagazines<strong>Newspapers</strong>MagazinesTV5.5 39.6– –– –10.3 45.86.5 47.3– 33.58.8 64.53.2 49.28.5 53.03.4 71.62.2 48.71.2 54.52.4 54.87.7 13.9– –3.3 44.012.8 35.93.6 44.23.9 63.86.5 29.98.7 45.05.5 20.04.4 33.19.5 4.4– –7.1 39.63.2 32.3– –2.6 17.9– –1.1 76.70.5 4.85.3 64.35.1 38.3– –11.6 37.36.7 55.13.4 56.612.5 2.47.5 70.27.4 34.712.0 30.05.7––12.06.710.9–11.95.73.114.231.432.0–64.468.456.233.414.014.5–11.33.06.411.92.913.34.47.511.59.711.811.76.2––5.03.72.03.26.53.9–2.81.3–7.93.8–––17.01.00.69.7–7.57.63.00.10.28.612.00.3––1.2–––––0.50.31.5––0.4––2.61.95.21.7––0.01.50.00.5–––––1.60.4––––––0.7––1.71.20.80.03.83.50.1––3.63.76.2–0.00.01.93.66.3–4.48.90.0–12.218.58.17.7–15.87.85.63.66.211.23.69.310.9–19.82.8–0.0–0.00.83.37.1–6.34.84.14.45.63.83.50.0––0.77.9––0.00.00.17.10.9–1.71.00.0–0.01.80.00.0–0.00.70.80.08.58.4–8.20.0––0.0–0.0–0.0–2.00.0–7.70.20.61.70.18.24.050.0––26.832.6––13.723.430.727.634.8–16.129.629.9–18.211.023.371,5–30.837.840.526.739.221.2–37.775.7––56.2–83.8–3.295.530.540.2–26.421.731.978.915.033.936.838
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDS(%)EuropeAustriaBelgiumBosnia & Herzegovina (2)BulgariaCroatia (2)Czech RepublicD<strong>en</strong>markEstoniaFinlandFranceGermanyGreeceHungaryIcelandIrelandItalyLatviaLithuaniaLuxembourgNetherlandsNorwayPolandPortugalRomaniaRussiaSlovakiaSlov<strong>en</strong>iaSpainSwed<strong>en</strong>SwitzerlandUkraine (2)United Kingdom36.719.96.017.513.320.044.745.255.116.641.711.412.458.260.721.134.816.162.343.544.310.78.615.922.48.515.128.248.918.612.539.8Advertising Exp<strong>en</strong>diture Share (Table 2)TV23.1 24.513.9 44.5– 65.011.7 58.511.4 68.320.0 47.93.1 15.613.3 24.017.0 19.132.2 30.624.7 23.530.8 36.712.2 63.97.3 30.52.3 20.014.4 53.411.6 33.66.0 71.410.3 7.024.0 21.512.0 33.312.5 63.617.5 53.79.6 59.811.8 41.610.2 70.415.0 64.712.9 40.314.0 21.817.9 13.818.0 53.115.5 30.62002Radio Cinema Outdoor Internet7.910.74.0––5.22.19.74.27.53.54.14.5–6.35.112.62.213.66.24.87.06.54.85.26.9–8.93.03.45.04.10.51.2–––0.20.7–0.20.81.00.80.30.40.90.80.7––0.20.90.40.80.40.40.1–0.80.51.0–1.57.39.42.512.36.96.03.15.43.011.44.216.36.73.79.53.95.44.26.83.72.85.412.49.618.14.05.27.55.014.917.56.80.00.6–0.0–0.73.92.41.41.01.40.00.0–0.41.31.20.0–0.91.90.30.60.00.50.00.01.36.70.50.61.7“<strong>Newspapers</strong>” includes “Magazines” in Bosnia & Herzegovinia, Cambodia and Sri Lanka.* Forecast“Outdoor” includes “Other Media” in China, D<strong>en</strong>mark, France Japan, Republic <strong>of</strong> Korea, Luxembourg, Philippines, Russia and the USA.(1) 2002 figures actually refer to 2001 – (2) 2006 figures actually refer to 2005 – (3) 2006 figures actually refer to 2003Source: <strong>World</strong> Press Tr<strong>en</strong>ds 2007, <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200839.125.96.712.814.319.136.342.653.415.040.315.610.2–59.619.027.914.7–39.042.115.87.89.225.26.320.624.644.635.55.333.5<strong>Newspapers</strong>2006* 2009*<strong>Newspapers</strong>Radio Cinema Outdoor InternetMagazines<strong>Newspapers</strong>MagazinesTV19.2 24.110.5 39.02.1 89.58.4 67.010.7 68.219.7 49.02.9 20.311.0 27.516.1 19.930.8 32.023.7 23.936.6 31.010.7 63.8– –2.6 20.213.7 54.513.7 36.85.8 72.0– –21.3 24.810.3 27.014.5 50.815.9 55.610.7 64.30.0 49.07.6 76.610.2 55.411.3 45.612.4 22.722.9 23.39.6 29.813.1 27.08.112.10.33.5–5.51.57.73.87.84.04.36.1–7.36.211.52.2–7.14.99.26.06.45.65.55.59.02.93.83.53.60.61.10.0––0.40.5–0.10.80.80.70.2–0.60.80.70.2–0.20.81.40.70.70.40.10.40.60.41.5–1.37.58.41.37.46.64.13.06.13.010.54.711.87.3–7.93.76.64.3–4.23.96.913.17.418.23.37.06.65.611.651.77.81.43.10.00.90.22.35.95.13.73.12.60.01.8–1.82.02.80.9–3.411.01.40.91.41.70.60.92.211.41.40.113.540.823.6–9.0–18.131.938.251.214.139.116.89.8–58.018.824.013.8–37.437.414.77.39.418.95.020.622.841.336.6–30.039
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER40
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS2. Digital Media AdvertisingLandscapeIn a perfect world, online rev<strong>en</strong>ues wouldalready be making up for falling printrev<strong>en</strong>ues that newspapers around the worldare experi<strong>en</strong>cing. Although online is notbridging the rev<strong>en</strong>ue gap, rev<strong>en</strong>ue g<strong>en</strong>eratedon digital channels is growing, andresearchers project digital to be a gold minefor the future with an aggressive strategy andexecution.This chapter explores the disparate sources<strong>of</strong> research on advertising worldwide, andthe similar conclusions: that hyper growthsignals huge opportunities for thosepublishing and media channel companies that<strong>en</strong>gage in the sale <strong>of</strong> advertising on local,regional, national or international levels.Some niche digital advertising channels withpowerful rev<strong>en</strong>ue pot<strong>en</strong>tial, explored here,include advergaming, Internet and mobilesearch advertising, mobile music and digital TV.Global digital/mobile rev<strong>en</strong>ueThe United States, Asia Pacific and EMEAlook to be the three biggest players in 2011.According to research firm Pricewaterhouse-Coopers (PwC), digital/mobile rev<strong>en</strong>uesworldwide will grow from US$12.7 billion in2002, to more than $153.4 billion in 2011. Theannual growth rate is consist<strong>en</strong>tly high in thedouble-digit range, except for the year 2002.Brok<strong>en</strong> down by region, the United States,which was the biggest player in 2002, lostground to Europe, the Middle East and Africa(EMEA) and the Asia Pacific region. In 2011,each <strong>of</strong> the three regions will account for aboutone-third <strong>of</strong> the total rev<strong>en</strong>ue, while Canadaand Latin America will contribute very little.Online mediaGLOBAL INTERNET ADVERTISING MARKETLike digital/mobile rev<strong>en</strong>ues, the globalInternet advertising market has also remainedstrong since 2002, and is producing doubledigitgrowth each year through 2011,according to PwC. Growth is particularlystrong from 2003 through 2007, and isexpected to slow down to less than 25 perc<strong>en</strong>t,but still grow steadily after that.41
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERUS$ millions180,000160,000140,000120,000CanadaLatin AmericaAsia PacificEMEAUnited StatesDigital/Mobile Rev<strong>en</strong>ues113,970133,699153,427100,00094,59080,00075,55860,00040,00020,0000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal12,713200270.530.015.822.9-10.06.418,853200339.731.767.661.836.248.328,565200451.8101.562.955.243.851.541,945200554.868.868.348.134.346.858,308200636.640.843.240.235.839.0200730.331.632.727.528.729.6200825.926.127.726.822.325.2200920.923.223.522.117.120.5201016.218.521.117.814.217.3201114.314.319.313.811.814.82007-11CAGR21.322.624.821.518.721.3Note: Including online subscription r<strong>en</strong>tals, digital mobile/TV downloads, video-on-demand, digital music downloads, mobile music, onlineadvertising, online video games, wireless video games. E-book, and online gamingSource: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ millions80,00070,00060,00050,000Global Internet Advertising MarketCanadaLatin AmericaAsia PacificEMEAUnited States49,50157,71965,58573,09640,00040,55830,00020,00010,0009,04711,58816,45122,91731,5930% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal200282.47.519.58.0-16.6-8.3200334.84.745.442.820.928.1200453.646.751.463.432.542.0200554.247.759.147.330.339.32006p42.625.638.745.933.937.9200737.327.327.833.725.628.4200827.321.223.125.919.422.0200921.418.017.020.114.316.6201017.715.214.315.911.813.6201115.013.612.612.99.911.52007-11CAGR23.519.018.821.516.118.3Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2002, the online ad market was at $9billion, but skyrocketed to $40.6 billion in2007. PwC has forecast it will reach $73.1billion in 2011, a more than sev<strong>en</strong>-foldgrowth in 10 years.The United States was the biggest contributorto advertising on the Internet in 2002, andalthough it will still be in the top spot in 2011,it will be by a much smaller margin. Its holdon the market is expected to drop by 2042
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSShare <strong>of</strong> Global InternetAdvertising MarketUS EMEA Asia Pacific Latin America Canada18.2%12.7%20021% 1.7%66.4%Internet Advertising Markets,Europe and U.S., 2006€ in millions14,00012,000€12,805.610,0008,0006,000 €7,999.24,0002,0000EuropeU.S.A.Source: IAB Europe / PwC© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200817.5%20050.9% 2.2%Share <strong>of</strong> Total InternetAdvertising Markets, 2006(in % and € in millions)24.8%54.7%European CountriesGermany21.9%France14.7%Netherlands7.1%17.7%20080.8% 2.5%50.9%UnitedKingdom38.8%Slov<strong>en</strong>ia0.1%Greece0.2%Italy6%Spain3.9%D<strong>en</strong>mark2.7%Belgium2.3%Austria1.2%Finland1.1%28.1%20110.8% 2.8%18.1%48.4%European Countries vs. U.S.Italy€480.22.2%Netherlands€564.3France 3%€1,178.86%Germany€1,752.18%Spain€310.61%D<strong>en</strong>mark€214.31% All Other€398.52%29.9%Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associate© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008UnitedKingdom€3,100.515%Source: IAB Europe / PwC© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008USA€12,805.662%perc<strong>en</strong>t, from a 66 perc<strong>en</strong>t hold in 2002 to 48perc<strong>en</strong>t in 2011. Europe, the Middle East andAfrica (EMEA), meanwhile, are gaining ashare <strong>of</strong> more than 10 perc<strong>en</strong>t, from 18 perc<strong>en</strong>tto about 30 perc<strong>en</strong>t in 10 years. Asia Pacific isalso on the rise, to nearly 20 perc<strong>en</strong>t in 2011,while Latin America and Canada are still smallpieces <strong>of</strong> the whole. Although the U.S. onlinead market’s overall share is declining, itcontinued to outpace Europe’s in 2006, with43
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER€12.8 billion, compared with Europe’s €8billion, according to IAB Europe and PwC.In 2006, the U.S. ad market accounted for amore than a 60 perc<strong>en</strong>t share <strong>of</strong> the totalmarket in U.S. and Europe, while the UnitedKingdom made up 15 perc<strong>en</strong>t, followed byGermany and France.Wh<strong>en</strong> looking only at Europe, the top threecountries in terms <strong>of</strong> online advertising – theUnited Kingdom, Germany and France –accounted for 75 perc<strong>en</strong>t <strong>of</strong> all the onlinesp<strong>en</strong>ding. Other countries, such as wirelesshot spot Nordic countries, still make up asmall share.ONLINE AD GROWTH RATE, 2005-2006The online ad space has be<strong>en</strong> booming inrec<strong>en</strong>t years, and is a universal tr<strong>en</strong>d that hastouched nearly every country. According toWAN’s <strong>World</strong> Press Tr<strong>en</strong>ds 2007, most <strong>of</strong> thecountries experi<strong>en</strong>ced a sizable increase inonline ad exp<strong>en</strong>ditures in 2006.Among the fastest growers are emergingcountries, such as Ukraine, Saudi Arabia,Romania and Lithuania, all with a stunninggrowth rate <strong>of</strong> more than 90 perc<strong>en</strong>t. The 140perc<strong>en</strong>t growth <strong>of</strong> Ukraine, in particular,placed the country at the top <strong>of</strong> the list <strong>of</strong>fastest growers.Change in Online Advertising Exp<strong>en</strong>diture, 2005-2006 (%)UkraineSaudi ArabiaNew ZealandRomaniaLithuaniaTurkeyIrelandEstoniaHungaryPortugalUnited Arab EmiratesBelgiumPolandNorwayCanadaFranceItalyBulgariaIndiaTaiwanAustraliaUnited KingdomSwitzerlandJapanCzech RepublicSwed<strong>en</strong>NetherlandsGermanySpainIsraelLatviaUnited States <strong>of</strong> AmericaVietnamFinlandIndonesiaRepublic <strong>of</strong> KoreaD<strong>en</strong>markArg<strong>en</strong>tinaAustriaBrazilThailandUruguayHong KongSouth AfricaChilePuerto Rico100.00100.0092.5588.7681.2574.8469.9560.0058.7854.5553.5850.0042.5341.8840.3140.2540.2140.0140.0039.9338.8936.4333.0131.3529.929.8229.7528.0426.4925.0025.0025.0024.3920.0015.6715.6614.2914.2513.4412.509.357.566.950.00122.22% 0 20 40 60 80 100 120 140 160Source: <strong>World</strong> Press Tr<strong>en</strong>ds 2007, <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008140.444
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDSOn the other hand, countries with an alreadydeveloped Internet infrastructure, such as theUnited Kingdom, Japan, the United States and theNordic countries, have already passed the initialgrowth spurt stage, and thus have a relativelysteady growth rate, <strong>of</strong> betwe<strong>en</strong> 25 to 40 perc<strong>en</strong>t.ONLINE AD MARKET IN EUROPEEuropean Internet AdvertisingMarkets, by Formats, 2006€ in millions4,0003,500€3,682.13,0002,5002,000 €2,457.01,500€1,729.41,000500€130.70Display Classifieds Search E-mailSource: IAB Europe / PwC© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2006, search accounted for the biggest slice<strong>of</strong> the online ad market in Europe, totalling€3.7 billion, while display and classified tookthe second and third place, with values <strong>of</strong> €2.5billion and €1.7 billion, respectively. E-mailonly accounted for €130 million, a share <strong>of</strong>less than two perc<strong>en</strong>t, according to theInteractive Advertising Bureau and PwC.In terms <strong>of</strong> sp<strong>en</strong>ding per online user, theUnited Kingdom topped all the other Europeancountries, sp<strong>en</strong>ding more than €100 per userin 2006. D<strong>en</strong>mark, Germany and theNetherlands followed, all sp<strong>en</strong>ding more than€50 per user. Austria, Italy and Spain, inaccord with their low share <strong>of</strong> online adsp<strong>en</strong>ding, sp<strong>en</strong>t less than €30 per user.billionsWestern Europe OnlineRev<strong>en</strong>ues, 2005-2011€9€8 Classifieds1.2Search1.2€7 Display1.14.0€61.03.83.50.9€53.10.8 2.7€42.20.7€3 1.6€22.52.7 2.9 3.02.0 2.2€1 1.602005 2006 2007 2008 2009 2010 2011Source: Jupiter Research© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to Jupiter Research, total online adrev<strong>en</strong>ues in Western Europe will grow from €3.9billion in 2005 to more than €8 billion in 2011.In 2005, both display and search accounted for€1.6 billion, together repres<strong>en</strong>ting more than80 perc<strong>en</strong>t <strong>of</strong> the total rev<strong>en</strong>ues.In 2011, online ad rev<strong>en</strong>ues in Western Europewill total €8.2 billion, according to JupiterResearch. Overall, search is expected toaccount for €4 billion, or nearly 50 perc<strong>en</strong>t.Display will make up €3 billion, or more than36 perc<strong>en</strong>t, while classified will repres<strong>en</strong>t therest, at €1.2 billion.€120Sp<strong>en</strong>d per Internet User, Europe, 2006100104.09806072.42402054.3651.4248.2939.8933.127.37 26.79 25.040UnitedKingdomD<strong>en</strong>mark Germany Netherlands France Belgium Finland Austria Italy SpainSource: IAB Europe / PwC © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200845
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERONLINE ADVERTISING IN U.S.U.S. Online Users and OnlineAd Rev<strong>en</strong>ues, 2006 to 2011US$ billions60504030190.5201002006 2007 2008 2009 2010 2011Source: Marketing Charts/Yankee Group and InteractiveAdvertising Bureau, Jan 2008© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to technology research firm YankeeGroup and market research group theInteractive Advertising Bureau, U.S. online adswill surge from US$17 billion in 2006 to $50billion in 2011, a growth <strong>of</strong> nearly 200perc<strong>en</strong>t. The online population in the countrywill also continue to increase, from 190million in 2006, to more than 205 million in2011.%4035302520151016.9195.021.7Online advertising rev<strong>en</strong>ueInternet users age 6+197.227.6200.034.3202.941.9205.850.3U.S. Advertising Sp<strong>en</strong>dingGrowth Rate, 2006-201134.626.828.518.2 15.4Million210205200195190185180Total mediaInternetTotal mediawithout Internet5 3.9 2.1 2.8 2 2.5 2.32.4 00.5 0.7 0.4 0.9 0.92006 2007 2008 2009 2010 2011Source: eMarketer, October 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008As the Internet is still a relatively new form <strong>of</strong>media, it’s no surprise that Internet adsp<strong>en</strong>ding growth is much stronger thantraditional media in the United States.According to online market research firmeMarketer, online ad sp<strong>en</strong>ding growth is muchhigher than other media, with double-digitannual growth from 2006 to 2011. Its growthrate is especially high during the first threeyears, at more than 25 perc<strong>en</strong>t.12US$ billions50454035302520151050Index <strong>of</strong> U.S. Ad Sp<strong>en</strong>ding Growth:TV vs. Consumer Internet100-point index700Consumer Internet ad sp<strong>en</strong>d600TV ad sp<strong>en</strong>d50040030020010020.116.9U.S. Online and RadioAdvertising Sp<strong>en</strong>dingOnline Ad Sp<strong>en</strong>dingRadio Ad Sp<strong>en</strong>ding34.028.221.720.4 21.0 21.5 22.1 22.6Source: eMarketer, August 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200839.044.02006 2007 2008 2009 2010 2011099 00 01 02 03 04 05 06 07F 08F 09FSource: IBM Institute for Business Value analysis based on anamalgamation <strong>of</strong> industry forecast, “The <strong>en</strong>d <strong>of</strong> advertising as weknow it,” 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008The total media growth rate <strong>of</strong> all media isabout two to four perc<strong>en</strong>t each year, but if theInternet is tak<strong>en</strong> out, that growth rate is lessthan one perc<strong>en</strong>t, except for in 2006.In 2006, more was sp<strong>en</strong>t on U.S. radioadvertising than online. Sp<strong>en</strong>ding for theonline sector exceeded radio for the first timein 2007, and is forecast to continue that stronggrowth, according to eMarketer. Radioadvertising, meanwhile, is stagnant. In 2011,online ad sp<strong>en</strong>ding will total $44 billion, whileradio ad sp<strong>en</strong>d will have only about half, $22.6billion.According to IBM Institute for Business Value,online ad sp<strong>en</strong>d also outshines TV in theUnited States. Sp<strong>en</strong>ding for both media was at100 on the index in 1999, and consumerInternet ad sp<strong>en</strong>ding nearly doubled in the nextyear. Although that growth recessed betwe<strong>en</strong>46
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDSUS$250Average Annual Online Ad Sp<strong>en</strong>ding per Internet User,U.S., 2001-2011200181.86198.77150141.83162.4210092.79113.775049.9637.7744.2356.5971.5102001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Note: eMarketer b<strong>en</strong>chmarks its U.S. online advertising sp<strong>en</strong>ding projections against the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers (PwC) data, for which the last full year measured was 2006; online ad data includes categories as defined by IAB/PwCb<strong>en</strong>chmark – display ads (such as banners), paid search ads (including contextual text links), rich media (including video), classified ads, sponsorships,referrals (lead g<strong>en</strong>eration) and e-mail (embedded ads only); excludes mobile ad sp<strong>en</strong>ding; an Internet user is defined as someone age 3+ who usesthe Internet at least once per month from any location.Source: eMarketer, October 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ millionSearchDisplay AdsClassifiedsRich MediaLead g<strong>en</strong>erationE-mailSponsorshipTotal (US$ million)Annual Growth (%)U.S. Internet Advertising Rev<strong>en</strong>ue by Category2005 2006 2007 2008 2009 2010 20115,1422,5082,1321,00375325162712,54230%6,7523,7133,0381,1821,35033850616,87935%8,2884,6053,6541,3741,84239842820,58922%9,4495,1574,2181,5992,24745037623,49514%10,9606,1024,7462,2342,65249533927,52817%12,2617,0335,2022,9972,97653231231,31414%13,4747,9635,6024,1483,28256129235,32113%Source: MultiMedia Intellig<strong>en</strong>ce © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ millions70,00060,00050,00040,000U.S. Interactive Marketing Sp<strong>en</strong>d Forecast, 2007-2012Online VideoEmerging ChannelsE-mailOnline DisplaySearch Engine30,00020,00010,00002007 2008 2009 2010 2011 2012Source: Forrester Research, Inc. © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200847
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER2000 and 2002, due to the Internet bubble <strong>of</strong>the early mill<strong>en</strong>nium, it was back on the trackin 2003 and continued to increase with an ev<strong>en</strong>higher rate, expected to exceed 600 on theindex in the year 2009.During the Internet’s rapid growth, the alreadyestablished television segm<strong>en</strong>t has be<strong>en</strong>growing at a slower pace, especially betwe<strong>en</strong>1999 and 2003. It will be less than index 200in the year 2009, less than one-third <strong>of</strong> theonline ad index for that year.According to eMarketer and IAB/PwC research,along with increasing online ad sp<strong>en</strong>ding, theaverage annual ad sp<strong>en</strong>ding on a U.S. onlineuser is also on the rise. Sp<strong>en</strong>ding was nearly $50per user in 2001, and declined largely because<strong>of</strong> the Internet bubble. In 2007, it reached $110and is expected to increase to $199 in 2011.According to MultiMedia Intellig<strong>en</strong>ce, totalU.S. online advertising rev<strong>en</strong>ue in 2011 willreach about $35 billion, with nearly 40perc<strong>en</strong>t ($13.5 billion) made up by search.Display ads will account for 22.5 perc<strong>en</strong>t,while classified and rich media are expectedto account for 16 perc<strong>en</strong>t and 12 perc<strong>en</strong>t,respectively.Interactive marketing sp<strong>en</strong>ding in the UnitedStates will reach $60 billion in 2012, growingfrom less than $20 billion in 2007, accordingto technology and market research firmForrester Research, Inc.Online Advertising Rev<strong>en</strong>uesin China, 1998-2006US$ millions6005004003002001000Online Advertising Rev<strong>en</strong>ues (US$ millions)Increase (%)1998 1999 2000 2001 2002 2003 2004 2005 2006(%)350300250200150100Note: converted to dollars at the annual average exchange rate.From online media and advertising ag<strong>en</strong>cies, excluding search<strong>en</strong>gine marketing.Source: Shanghai iResearch Co., Ltd., “China Online AdvertisingResearch Report 2004,” June 2005© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20085008,0006,0004,0002,000Paid Search AdvertisingU.S., 2006 – 2008US$ million Paid search Annual growth %12,00029.529.0%10,00011,094.929.028.56,799.002006A 2007E 2008ESource: MAGNA Global© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2007, sp<strong>en</strong>ding was almost completelydominated by search <strong>en</strong>gine and onlinedisplay, while online video, emerging channelsand e-mail were niche groups. In 2012, search<strong>en</strong>gine and online display are still expected tobe the two largest contributors, but onlinevideo and emerging channels are growing, andare expected to continue to increase.Paid search, an important contributor to onlineadvertising, will increase from US$6.8 billionin 2006 to $11.1 billion in 2008, the mediaresearch arm <strong>of</strong> U.S.-based MAGNA Globalhas forecast. Annual growth <strong>of</strong> paid search in2007 and 2008 hit the double-digit range, with29 perc<strong>en</strong>t and 26.5 perc<strong>en</strong>t, respectively.ONLINE ADVERTISING IN CHINAIn China, online ad rev<strong>en</strong>ue is also booming.The once tiny market surged to about US$40million in 2000, with an annual growth rate <strong>of</strong>nearly 300 perc<strong>en</strong>t. In 2004, online adsp<strong>en</strong>ding exceeded $200 million, and reachedabout $500 million in 2006. Its growth,although slowing in rec<strong>en</strong>t years, is still atabout 50 perc<strong>en</strong>t per year, according toShanghai iResearch Co. Ltd.ONLINE VIDEO8,770.726.5%28.027.527.026.526.025.525.0U.S. online videoAccording to research firm eMarketer, U.S.online video advertising is a booming sector,surging from $40 million in 2001 to $4.3billion in 2011. Each year, growth is in thedouble-digits, and overall growth is more than100-fold.In terms <strong>of</strong> overall online ad sp<strong>en</strong>ding, onlinevideo ad sp<strong>en</strong>ding is growing its share, fromless than one perc<strong>en</strong>t before 2002 to nearly48
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSU.S. Online Video Advertising Sp<strong>en</strong>dingUS$ million %5,000Online video advertising sp<strong>en</strong>ding as % <strong>of</strong> the total online ad sp<strong>en</strong>ding124,500Online video advertising sp<strong>en</strong>ding (US$ millions)9.84,000103,5007.94,30083,0006.23,1002,50064.72,0003.62,1001,50042.41,3501,0001.81.2 1.425000.97750.640 55 85 135 225410002001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011Ad Sp<strong>en</strong>ding Growth 33.3% 37.5% 54.5% 58.8% 66.7% 82.2% 89.0% 74.2% 55.6% 47.6% 38.7%Note: eMarketer b<strong>en</strong>chmarks its U.S. online advertising sp<strong>en</strong>ding projections against the Interactive Advertising Bureau (IAB)/PricewaterhouseCoopers(PwC) data, for which the last full year measured was 2006; includes in-<strong>page</strong> and streaming video.Source: eMarketer, June 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008five perc<strong>en</strong>t in 2008. It is expected to achieve a9.8 perc<strong>en</strong>t share by 2011.In 2003, ad sp<strong>en</strong>ding per U.S. online user was$1.63. This figure will exceed $12 in 2009.In 2011, sp<strong>en</strong>ding is expected to reach $23.50per user. The growth rate in 2007 and 2008 isestimated at more than 50 perc<strong>en</strong>t, and growthis forecast to remain in the double digits forthe following years.ONLINE SOCIAL NETWORKINGU.S. social networking ad sp<strong>en</strong>dingAccording to eMarketer, U.S. online socialnetworking ad sp<strong>en</strong>ding will grow fromUS$350 million in 2006 to US$2.7 billion in2011. The overall growth <strong>of</strong> more than sev<strong>en</strong>foldis at a consist<strong>en</strong>t double-digit growth rateeach year.Average U.S. Online VideoAd Sp<strong>en</strong>ding per Uservs. Average Growth, 2003 – 2011US$ Online video ad sp<strong>en</strong>ding per user (US$) %25 Average growth (%)23.5 7059.5602052.117.6143.85043.3 41.3154012.46 33.428.610308.719.35.722051.63 1.94 2.49 3.59 1002003 2004 2005 2006 2007 2008 2009 2010 2011 0Note: Age 3+; online video viewers defined as an individualwho downloads or streams video (cont<strong>en</strong>t or advertising) at leastonce a month; eMarketer b<strong>en</strong>chmarks its U.S. online advertisingsp<strong>en</strong>ding projections against the Interactive Advertising Bureau(IAB)/PricewaterhouseCoopers (PwC) data, for which the last full yearmeasured was 2006; online video includes in-<strong>page</strong> and streaming video.Source: eMarketer, June 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008US$ million3,0002,5002,0001,5001,0005000U.S. Online Social NetworkAd Sp<strong>en</strong>ding, 2006-2011350163%92070%1,56029%2,020Source: eMarketer, Dec. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200819%2,40013%2,7002006 2007 2008 2009 2010 201149
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERMobile MediaGLOBAL MOBILE ADVERTISINGSPENDINGMobile ad sp<strong>en</strong>ding is predicted to reachUS$13.9 billion in 2011, with mobilemultimedia ads taking share from g<strong>en</strong>eralmobile ads.Global mobile ad sp<strong>en</strong>ding will grow rapidlybetwe<strong>en</strong> 2006 through 2011, from US$1.5billion to nearly $13.9 billion, according toeMarketer.G<strong>en</strong>eral mobile ad sp<strong>en</strong>ding, includingsp<strong>en</strong>ding on text message promotions and adsupportedvoice minutes, will garner thelargest share throughout the six years, growingGlobal Mobile Ad Sp<strong>en</strong>ding2006 – 2011US$ million16,00014,00012,00010,300 11,74610,0001,2956,8908,000749 9,0064,7366,0002,710421 6,1414,0001,541 215 4,3162,0001092,4961,43202006 2007 2008 2009 2010 2011Note: Numbers may not add up to total due to rounding.* Includes sp<strong>en</strong>ding on text message promotions and ad-supportedvoice minutes.** Includes sp<strong>en</strong>ding on ad placem<strong>en</strong>ts around mobile video cont<strong>en</strong>t.Source: eMarketer, Jan. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Global Mobile AdvertisingForecast, 2011: US$11.35 billionMobileTV39%Mobile multimedia ad sp<strong>en</strong>ding*G<strong>en</strong>eral mobile ad sp<strong>en</strong>ding**Other10%Text, picturemessaging24%Source: Informa Telecom© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200813,8622,116Searchanddisplay27%from $1.4 billion to $11.7 billion. Meanwhile,mobile multimedia advertising sp<strong>en</strong>ding,including sp<strong>en</strong>ding on ad placem<strong>en</strong>ts aroundmobile video, mobile music, mobile TV andmobile social networks, is expected to increasefrom $109 million in 2006 to $2.1 billion in2011.Overall, the mobile multimedia ad sp<strong>en</strong>dingshare is actually gaining over the g<strong>en</strong>eralmobile ad share. In 2006, multimedia onlyaccounted for sev<strong>en</strong> perc<strong>en</strong>t <strong>of</strong> the mobile adspace, but is predicted to claim a 15 perc<strong>en</strong>tshare in 2011. On the other hand, g<strong>en</strong>eralmobile ad sp<strong>en</strong>ding dropped eight perc<strong>en</strong>t <strong>of</strong>the overall share, from a 93 perc<strong>en</strong>t hold to an85 perc<strong>en</strong>t hold on the mobile ad market.According to a forecast by Informa Telecom,in 2011, the global mobile ad market willreach $11.35 billion. The biggest chunk (39perc<strong>en</strong>t) comes from mobile TV, while another27 perc<strong>en</strong>t is g<strong>en</strong>erated by search and display and24 perc<strong>en</strong>t is from text and picture messaging.The remaining 10 perc<strong>en</strong>t is from other formats.MOBILEADVERTISING INWESTERNEUROPEAccording to eMarketer, mobile ad sp<strong>en</strong>dingin Western Europe will increase from $454million in 2006 to $3.46 billion in 2011.Just like global mobile ad sp<strong>en</strong>ding, g<strong>en</strong>eralmobile advertising also accounts for the largestshare <strong>of</strong> overall sp<strong>en</strong>ding in Western Europe,growing from $370 million to $2.83 billionfrom 2006 to 2011. Meanwhile, the mobileMobile Ad Sp<strong>en</strong>dingin Western Europe, 2006 – 2011US$ millions4,0003,500Mobile multimedia ad sp<strong>en</strong>ding** 3,462G<strong>en</strong>eral Mobile ad sp<strong>en</strong>ding*6343,0002,7222,500457 2,8292,0001,9673092,2651,5001,321 1,6581,000782 206454 132 1,115500 84 65003702006 2007 2008 2009 2010 2011Note: includes BeNeLux, France, Germany, Italy, Spain, Scandinavia,UK; numbers may not add up to total due rounding.* includes sp<strong>en</strong>ding on text message promotions and ad-supportedvoice minutes; ** includes sp<strong>en</strong>ding on ad placem<strong>en</strong>ts around mobilevideo cont<strong>en</strong>t, mobile music, mobile TV and mobile social networks.Source: eMarketer, January 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200850
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS¥ in JPY billionMobile vs. PC Online Advertising Exp<strong>en</strong>ditures, Japan25,00010,00020,00010,00015,00010,00010,0005,0000Mobile searchadvertisingMobile fixedadvertisingOnline searchadvertisingOnline fixedadvertising(Traditional vs. Search-based)Mobile search advertisingMobile fixed advertisingOnline search advertisingOnline fixed advertising2005 2006 2007e 2008e 2009e 2010e 2011e28,85919339932318,746,9124,6273,3Source: Infinita, “The Japan Mobile Internet Report”/D<strong>en</strong>tsu Inc., April 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200816,757,6153,7315,426,266,5180,4347,237,173,6204,7374,449,478,9226,5400,9multimedia ad sp<strong>en</strong>ding share is expected torise from $84 million to $634 million duringthe same period.MOBILEADVERTISING INTHEUNITEDSTATESU.S. Mobile Advertising2006 – 2008US$ million Mobile advertising%250Annual growth929120090.9%90194 891508887861001058584.8% 845055838202006A 2007E 2008E81Source: MAGNA Global© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In the United States, mobile advertising is upfrom $55 million in 2006 to $194 million in2008, according to a study from MAGNAGlobal. The annual growth rate from 2007 and2008 is steep, at 90.9 perc<strong>en</strong>t and 84.8 perc<strong>en</strong>t,respectively.MOBILE ADVERTISING IN JAPANAccording to data from Japan-basedadvertising ag<strong>en</strong>cy D<strong>en</strong>tsu, mobile advertisingin Japan is expected to grow from ¥28.8 JPYbillion in 2005, to reach ¥128.3 billion in2011. Compared to online advertising, it is stilla niche market, but one that continues to grow.Mobile fixed ads, which totalled ¥28.8 billion in2005, will reach ¥78.9 billion in 2011.Mobile search ads, on the other hand, did notev<strong>en</strong> exist before 2007, but is expected to growfrom ¥8.7 billion in 2007 to ¥49.4 billion in2011. If the growth continues to be this strong,it is expected to exceed mobile fixedadvertising in the near future.MOBILE CONTENT REVENUES IN JAPANAccording to “The Japan Mobile InternetReport,” a study by Japanese mobile marketresearch firm Infinita Inc. and Tokyo-basedpublisher Mobikyo KK, mobile cont<strong>en</strong>trev<strong>en</strong>ues in Japan reached more than ¥180billion in 2003, but rose to more than ¥350billion in 2006, according to data provided bythe Mobile Cont<strong>en</strong>t Forum.In 2003, all the rev<strong>en</strong>ues were from51
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER¥ in JPYbillion40035030025020015010050Mobile Cont<strong>en</strong>t Rev<strong>en</strong>uesby Segm<strong>en</strong>t, Japan73,4Polyphonic ringtonesOther mobile cont<strong>en</strong>tGames19,941,2110,1 116,79,946,358,981,8 92,1 118,7104,8Real tonesFull track musicdownloads23,752,274,884,302003 2004 2005 2006Source: Infinita, “The Japan Mobile Internet Report”/Mobile Cont<strong>en</strong>t Forum, July 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008polyphonic ringtones and other mobilecont<strong>en</strong>t. By 2006, rev<strong>en</strong>ues from polyphonicringtones declined, while those from games,real tones and full-track music downloadswere up, together totalling ¥150.7 billion, or43 perc<strong>en</strong>t <strong>of</strong> the total rev<strong>en</strong>ues.MOBILE INTERNET / MOBILE SEARCHU.S. mobile Internet/mobile searchThe number <strong>of</strong> U.S. mobile Internet users havebe<strong>en</strong> growing in rec<strong>en</strong>t years. According toeMarketer, user numbers are up from 27 millionin 2006 to nearly 65 million in 2011, whilemobile search users are expected to accountfor 86 perc<strong>en</strong>t, or 55.8 million, in 2011.Ad rev<strong>en</strong>ues for mobile search in the UnitedStates is also up, from $2.1 million in 2006, tomore than $710 million in 2011.According to figures from TKG estimates, therev<strong>en</strong>ues are higher, but the growth tr<strong>en</strong>d issimilar. Mobile search rev<strong>en</strong>ue in the UnitedStates was $33.2 million in 2007, but with a112 perc<strong>en</strong>t CAGR from 2007 to 2012, it isexpected to reach $1.42 billion by 2012.MOBILE VIDEO / MOBILE TVGlobal Mobile Video Ad Rev<strong>en</strong>ueGlobal mobile video advertising is expected toreach US$2 billion in 2011.Mobile Search Rev<strong>en</strong>ue Forecast,U.S., 2007-2012US$ millions1,6001,400 CAGR 112%1,422.71,2001,000922.6800600527.8400245.9200 102.333.202007 2008 2009 2010 2011 2012Note: Mobile rev<strong>en</strong>ues include mobile search and display, ad-sponsoreddirectory assistance and local ad-supported multi-modal applications.Source: TKG estimates (2007)© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to MultiMedia Intellig<strong>en</strong>ce’s report“Advertising & Technology Collide,” globalmobile video fetched less than $200 million in2007. By 2011, however, ad rev<strong>en</strong>ue isexpected to reach $2 billion.To break down by region, most rev<strong>en</strong>ues in2007 came from Asia. A smaller part <strong>of</strong> themcame from Europe, while those from AmericaGlobal Mobile Video AdvertisingRev<strong>en</strong>ueUS$ million2,500Europe Asia America2,0001,5001,00050002007 2008 2009 2010 2011Source: MultiMedia Intellig<strong>en</strong>ce© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008U.S. Mobile Internet Users, Mobile Search Users and Mobile SearchAdvertising Rev<strong>en</strong>ues, 2006-2011 (in millions and in US$ millions)Mobile Internet usersMobile search usersMobile search ad rev<strong>en</strong>ues*200627.020.3$2.1200731.123.3$13.5200836.028.8$48.1200942.935.1$155.7201052.343.9$307.4201164.855.8$713.7* Earned from sale <strong>of</strong> display or text listings alongside mobile search results. © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: eMarketer, July 200752
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSaccounted for a very small piece <strong>of</strong> the whole.In 2011, Asia is still expected to have thebiggest share, but the other two regions willalso contribute for close to one-third each.U.S. mobile video rev<strong>en</strong>ueAccording to the Telephia’s (now Niels<strong>en</strong>Mobile) Mobile Video Report, U.S. mobilevideo rev<strong>en</strong>ue in the first quarter <strong>of</strong> 2006 was$49 million, with 3.3 million subscribers, andp<strong>en</strong>etration <strong>of</strong> 1.6 perc<strong>en</strong>t. In the first quarter<strong>of</strong> 2007, rev<strong>en</strong>ues totalled $146 million, with anearly 200 perc<strong>en</strong>t growth. The subscribersrose to 8.4 million, up more than 150 perc<strong>en</strong>t,while p<strong>en</strong>etration also increased to 3.6 perc<strong>en</strong>t.Global mobile TV market<strong>World</strong>wide, the mobile TV market was veryniche before 2005. Since th<strong>en</strong>, it has grownsteadily, and is expected to do so through theyear 2011. According to Scre<strong>en</strong> Digest, in 2011,the market will reach more than €1.75 billionin both Europe and Asia, and achieve nearly€750 million in rev<strong>en</strong>ues in North America.In terms <strong>of</strong> subscribers, Asia will lead withmore than 70 million subscribers by 2011.European subscribers will reach nearly 45million, while North American mobile TVsubscribers will reach about 20 million,according to Scre<strong>en</strong> Digest.U.S. Mobile Video Rev<strong>en</strong>ue, Size and P<strong>en</strong>etrationMeasurem<strong>en</strong>tMobile Video Quarterly Rev<strong>en</strong>ues (in US$ millions)# <strong>of</strong> Subscribers (in millions)P<strong>en</strong>etration (as proportion <strong>of</strong> all mobile subscribers)Q1 2006$493.31.6%Q1 2007$1468.43.6%YOY Growth198%155%Source: Niels<strong>en</strong> Mobile, Mobile Video Report, Survey and Bill Panel Analysis, Q1 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Rev<strong>en</strong>ues€ million2,0001,500Mobile TV Market, by Region, 2003 – 2011Europe (rev<strong>en</strong>ues)Europe (subscribers)Asia (rev<strong>en</strong>ues)Asia (subscribers)North America (rev<strong>en</strong>ues)North America (subscribers)Subscribersmillion75601,000453050015002003 2004 2005 2006 2007 2008 2009 2010 2011Source: Scre<strong>en</strong> Digest © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Mobile TV and Video Rev<strong>en</strong>ues, 2006 – 2011€ millionFranceUnited KingdomGermanyItalySpain20062520134562007346540118212008205162109249492009409345245484118201061862447582826920118469677661,169517Source: IDATE, “Mobile 2007” © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200853
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER200Mobile Messaging Rev<strong>en</strong>ues<strong>World</strong>wide, 2006 – 2010US$ billion120Mobile IM E-mail MMS SMS 100.710092 15847312806616.53.2 913.22107.860 714 17.2 20.7 23.41240 45 48 47.8 47.3 472006 2007 2008 2009 2010CAGRMobile IME-mailMMSSMS65.5%23.9%18.2%1.1%Source: Frost & Sullivan,“Op<strong>en</strong> Source Push Email &PIM for the Consumer Market”commissioned by Funambol,July 19, 2007© <strong>World</strong> <strong>Association</strong><strong>of</strong> <strong>Newspapers</strong> 2007-2008Short Text Message Rev<strong>en</strong>ues,by Region, 2006 – 2010US$ million30,00025,00020,00015,00010,0005,00002006 2007 2008 2009 2010Western EuropeNorth AmericaMiddle East/AfricaSource: Ovum as cited by Tekelec, June 2006© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Asia PacificLatin AmericaEastern EuropeMobile TV and video rev<strong>en</strong>ues in EuropeAccording to IDATE’s “Mobile 2007” study,among five countries in Europe studied, Italyleads in mobile TV and video rev<strong>en</strong>ues from2006 to 2011. Its rev<strong>en</strong>ues are forecast to growfrom €45 million in 2006 to €1.17 billion in2011, jumping nearly 26-fold. In 2011, theUnited Kingdom and France are predicted t<strong>of</strong>ollow, with rev<strong>en</strong>ues <strong>of</strong> €967 million and¤846 million, respectively. German rev<strong>en</strong>ueswill reach €766 million, while Spain will lagwith €517 million, according to the study.Global mobile messaging rev<strong>en</strong>uesAccording to business research and consultingfirm Frost & Sullivan’s study, commissionedby mobile op<strong>en</strong> application platformFunambol, global mobile messaging rev<strong>en</strong>ueswill grow from US$66 billion in 2006 to$100.7 billion in 2010. In 2006, nearly 70perc<strong>en</strong>t <strong>of</strong> the rev<strong>en</strong>ues came from SMS,which accounted for $45 billion. In 2010,although SMS still owns the lion’s share, itsrev<strong>en</strong>ues actually do not grow much, totallinga projected $47 billion.MMS and e-mail, in 2010, will still rank in thesecond and the third spots, with rev<strong>en</strong>ues <strong>of</strong>$23.4 billion and $16.5 billion, respectively.Mobile IM, however, is forecast to grow rapidlyfrom US$2 billion in 2006 to US$15 billion in2010, with a CAGR <strong>of</strong> more than 65 perc<strong>en</strong>t.Short text message rev<strong>en</strong>uesAccording to consulting firm Ovum, short textmessage rev<strong>en</strong>ues in Western Europe, whichtotalled more than $20 billion, topped otherregions in 2006, while those in the Asia Pacificregion ranked second, with about $17.5 billion.In 2010, rev<strong>en</strong>ues in the Asia Pacific willexceed those in Western Europe, Ovumpredicts, coming out on top by a large margin,at $25 billion. In Western Europe, rev<strong>en</strong>ues areexpected to fall to about $15 billion, puttingthat region in second place.North America, which had about $7.5 billionin rev<strong>en</strong>ues in 2006, is forecast to drop to thefourth spot in 2010 due to nearly stagnantrev<strong>en</strong>ues. This will leave third place op<strong>en</strong> forLatin America, which is expected to grow fromless than $5 billion in 2006, to nearly $10billion in 2010.MOBILE MUSICMobile music in Western EuropeAccording to eMarketer, total mobile musicsp<strong>en</strong>ding in Western Europe reached $636million in 2006, with $5 million devoted to adsupportedmobile music. This sp<strong>en</strong>ding isexpected to grow to $3.25 billion in 2011, whilethe ad-supported sector makes up $260 million.In 2006, ringtones and ringback tonesaccounted for more than 80 perc<strong>en</strong>t, while fulltrackdownload mastertones was still a niche.In 2011, full-track downloads <strong>of</strong> mastertones isexpected to have made huge leaps, accountingfor half <strong>of</strong> the total sp<strong>en</strong>ding.54
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS(in US$ millions)Full-track downloads mastertonesRingtones and ringback tonesTotal mobile music sp<strong>en</strong>ding<strong>of</strong> which: ad-supported mobile musicMobile music sp<strong>en</strong>ding in Western Europe,2006 – 20112006121515636520072557651,0201820085431,1541,6975920099951,4922,48612420101,3671,6713,03819820111,6261,6263,252260Note: Includes France, Germany, Italy, Spain, UK; numbers may not add up to total due to rounding.Source: eMarketer, May 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008GamesGLOBAL VIDEO GAME MARKETThe global video game market is forecast toreach US$48.9 billion in 2011, with the AsiaPacific and EMEA regions as the biggest twoplayers.According to PwC’s “Global Entertainm<strong>en</strong>tand Media Outlook 2007-2011,” the globalvideo game market was estimated at US$21.9billion in 2002, and is predicted to reach$48.9 billion in 2011.To break down by region, the Asia Pacificand United States were the top two players inthe market, accounting for 35.6 perc<strong>en</strong>t and32.8 perc<strong>en</strong>t, respectively. EMEA claimedthe third spot, with 27.1 perc<strong>en</strong>t. In 2011, theAsia Pacific is still expected to be the topplayer, with its share increasing to 38.5perc<strong>en</strong>t.EMEA will also gain shares, growing to 31.4perc<strong>en</strong>t and replacing the United States asthe second spot. The United States will loseshare, dropping to 25.5 perc<strong>en</strong>t. LatinAmerica and Canada are still expected to b<strong>en</strong>iche in 2011.Global Video Game MarketUS$ millions60,00050,00040,000CanadaLatin AmericaAsia PacificEMEAUnited States37,46841,45844,22646,72048,87730,00020,00021,88123,30426,33427,66531,62910,0000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal200223.332.62.39.411.48.1200314.514.24.710.24.36.5200414.35.613.816.69.413.020059.4-2.97.77.8-0.45.12006p17.211.017.014.810.614.3200718.622.020.917.915.518.5200812.39.812.011.87.510.620097.73.87.28.73.86.720104.83.45.67.53.75.620114.43.34.95.43.34.62007-11CAGR6.710.210.08.29.49.1Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200855
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERShare <strong>of</strong> Global Video Game Market, 2002 vs. 20112002 20112.1% 2.4%US EMEA Asia PacificLatin America Canada1.8% 2.8%32.8%25.5%35.6%38.5%27.1%31.4%Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associate © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008GLOBAL GAMING REVENUEAccording to MultiMedia Intellig<strong>en</strong>ce, globalgaming rev<strong>en</strong>ues will grow from less than$200 million in 2006 to more than $1.8 billionin 2011, a growth <strong>of</strong> more than nine-fold.Global Gaming Rev<strong>en</strong>ueby CategoryUS$ million2,0001,8001,600Casual GameGame Console1,4001,2001,00080060040020002006 2007 2008 2009 2010 2011Source: MultiMedia Intellig<strong>en</strong>ce© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Mobile Gaming Rev<strong>en</strong>uesin Western Europe, 2007 & 201120072011US$ billion$1.5Source: Gartner, “More Growth Ahead for Mobile Gaming”,June 18, 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008$2.00 1 2In 2006, about two-thirds <strong>of</strong> the rev<strong>en</strong>ue camefrom casual gaming, while console videogame-playing has grown quickly and isexpected to comprise about half <strong>of</strong> gamingrev<strong>en</strong>ue by 2011.MOBILE GAMING REVENUES IN WESTERNEUROPEAccording to Gartner Research, mobile gamingrev<strong>en</strong>ues in Western Europe totalled $1.5 billionin 2007, and will reach $2 billion by 2011.GAME-RELATED U.S. ADVERTISINGAccording to MAGNA Global, game-relatedadvertising in the United States reached $187.2million in 2006, and will reach $238.6 millionthis year. Its annual growth in 2007 and 2008is in the double-digit range, at 15.9 perc<strong>en</strong>t and10 perc<strong>en</strong>t, respectively.U.S. Game-Related Advertising2006 – 2008US$ million Game-related advertising %300Annual growth1825020015010050187.215.9%216.9238.610.0%02006A 2007E 2008ESource: MAGNA Global© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008161412108642056
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSDigital TVGLOBAL IPTV AD REVENUESGlobal IPTV Advertising Rev<strong>en</strong>ueUS$ million100,00090,00080,00070,00060,00050,00040,00030,00020,00010,000Latin AmericaChinaRO AsiaJapanEuropeNorth America02006 2007 2008 2009 2010 2011Source: MultiMedia Intellig<strong>en</strong>ce© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to MultiMedia Intellig<strong>en</strong>ce,worldwide ad-supported pr<strong>of</strong>essional InternetTV rev<strong>en</strong>ue will exceed US$5 billion in 2011,up from less than $500 million in 2006. In2011, most <strong>of</strong> the rev<strong>en</strong>ue is expected to comefrom Western Europe and North America,together accounting for two-thirds <strong>of</strong> the total.Asia will account for about $1 billion, whileLatin America, Eastern Europe and the MiddleEast will garner a small portion <strong>of</strong> the rev<strong>en</strong>ue.According to MultiMedia Intellig<strong>en</strong>ce, adrev<strong>en</strong>ues from global Internet protocoltelevision (IPTV) was incid<strong>en</strong>tal in 2006, buthas grown rapidly, and is forecast to reachUS$90 billion in 2011.By 2011, North America is predicted to garnernearly $55 billion in rev<strong>en</strong>ues, making it themost lucrative IPTV market. Europe will bringin more than $20 billion, while Japan will bethe third largest rev<strong>en</strong>ue g<strong>en</strong>erator.GLOBAL INTERNET TV AD REVENUEInternet TV ad rev<strong>en</strong>ue is expected to reachUS$5 billion in 2011, mostly coming fromWestern Europe and North America.<strong>World</strong>wide AdvertisingSupported Pr<strong>of</strong>essional InternetTV Rev<strong>en</strong>ue by RegionUS$ million6,000Eastern Europe and Middle East5,000 Latin AmericaAsia4,000 Western EuropeNorth America3,0002,0001,00002006 2007 2008 2009 2010 2011Source: MultiMedia Intellig<strong>en</strong>ce© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200857
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER58
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDS3. Media Usage Tr<strong>en</strong>dsG<strong>en</strong>eral media usage tr<strong>en</strong>dsMedia consumption is booming, thanks to theemerg<strong>en</strong>ce <strong>of</strong> a multitude <strong>of</strong> digital channels,which are expected to contribute 80 perc<strong>en</strong>t <strong>of</strong>media usage by 2020, according to estimatesfrom indep<strong>en</strong>d<strong>en</strong>t media ag<strong>en</strong>cy networkCarat, part <strong>of</strong> London-based Aegis Group plc.This chapter details a variety <strong>of</strong> studies thatreveal media usage patterns over timeintervals, country, frequ<strong>en</strong>cy, in tandem withother activities, influ<strong>en</strong>ce on purchasingbehaviour, devices, channels and more.Global Media Consumption per WeekAverage hours per week10080604020GamesWirelessOutdoorCinemaDigital RadioAnalogue RadioDigital TVAnalogue TVInternetPrint• 2020: 80% <strong>of</strong> all media digital• 2010: 66% <strong>of</strong> all media digital• 2007: 50% <strong>of</strong> all media digital01900 1920 1940 1960 1980 2000 2020Source: Carat © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200859
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERMedia usage around the world was predictable andstable before the 1940s, averaging about 20 hoursa week per person. Analogue television causedthe first big media boom, growing overall mediaconsumption to more than 50 hours per week by1980, according to Carat.Global media consumption experi<strong>en</strong>cedanother strong wave <strong>of</strong> growth after 1980,credited to the emerg<strong>en</strong>ce <strong>of</strong> digital media,such as mobile, digital radio, digital TV, theInternet and interactive games. Weeklyconsumption exceeded 60 hours per week in2000, and is expected to grow to about 90Media Usage: Weekday vs.Week<strong>en</strong>d, U.S., Dec. 2007On an averageweekday(Monday-Friday),do you…12.4%14.7%18.5%30.8%33.8%57.3%60.1%71.9%80.5%83.3%86.4%Duringan averageweek<strong>en</strong>d(Saturday-Sunday),do you…10.4%11.0%15.7%24.4%29.3%46.8%56.7%50.5%64.7%71.9%73.8%91.3% 86.6%BlogList<strong>en</strong> to Web radioList<strong>en</strong> to Satellite radioInstant MessageVideo gamingRead magazinesRead the newspaperList<strong>en</strong> to the radioRead the mailSurf the InternetRead/S<strong>en</strong>d E-mailWatch TVSource: BIGresearch Simultaneous Media Usage (SIMM 11) Study,Dec 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008hours per week in the year 2020. Print, thebedrock <strong>of</strong> media consumption, peaked in theearly 1940s, and has since stabilised,decreasing slightly betwe<strong>en</strong> 2000 and 2020,due to flourishing digital media.MEDIA USAGE: WEEKDAY VS. WEEKENDTop five most consumed media: TV, Internet,mail, radio and newspapers.On weekdays, more than nine out <strong>of</strong> 10 peoplein the United States watch television, morethan 80 perc<strong>en</strong>t read/s<strong>en</strong>d e-mail, surf online,and read the mail. Six out <strong>of</strong> 10 readnewspapers, while sev<strong>en</strong> out <strong>of</strong> 10 list<strong>en</strong> to theradio. Blogging, list<strong>en</strong>ing to Web radio orsatellite radio are still rare, with less than 20perc<strong>en</strong>t saying they do so, according to theSIMM study.On week<strong>en</strong>ds, people t<strong>en</strong>d to use mediaslightly less, with no type <strong>of</strong> media overtakinganother. Watching TV, s<strong>en</strong>ding/reading e-mailand surfing the Internet are still the top three,chos<strong>en</strong> by more than 70 perc<strong>en</strong>t. Just over 55perc<strong>en</strong>t read the newspaper on week<strong>en</strong>ds.G<strong>en</strong>erally, television and the Internet are thetop media used by most people. Print media,such as mail, newspapers and magazines, arestill important parts <strong>of</strong> the media whole, withat least about half <strong>of</strong> the U.S. population usingthem on a regular basis.MEDIA USAGE: BY TIMES OF DAYAccording to the SIMM study, Americansconsume a variety <strong>of</strong> media during differ<strong>en</strong>tintervals in the day: Radio and newspapers inthe morning, the Internet during the day andev<strong>en</strong>ing and TV at night.%3002502001501005006am-10amMedia Usage by Dayparts: Weekday, U.S., Dec. 200710am-NoonNoon-4:30pm4:30pm-7:30pm7:30pm-11pm11pm-1amSource: BIGresearch, Simultaneous Media Usage (SIMM 11) Study, Dec 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20081am-6amPlay video gamesBlogInstant MessageRead the mailRead the newspaperRead magazinesRead/S<strong>en</strong>d E-mailSurf the InternetWatch TVList<strong>en</strong> to Web radioList<strong>en</strong> to Satellite radio (XM-Sirius)List<strong>en</strong> to the radio60
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSMedia are consumed at differ<strong>en</strong>t times <strong>of</strong> daybased on information and leisure needs andbehaviours during differ<strong>en</strong>t hours. On aweekday, for example, radio is consumed bynearly 50 perc<strong>en</strong>t <strong>of</strong> people betwe<strong>en</strong> 6 a.m.and 10 a.m., the peak time for driving andcommuting. Usage drops by about a half in thedaytime, and becomes a niche form at night,wh<strong>en</strong> people are at home and seek other media,namely television and the Internet. <strong>Newspapers</strong>are read mostly in the early morning beforework hours. Online activities (surfing theInternet, using e-mail, etc.) are quite ev<strong>en</strong>lyscattered in the daytime and ev<strong>en</strong>ing, due to thefact that computers are almost equally availableat work and at home. Television takes over inthe late ev<strong>en</strong>ing and at night, and is mostlyconsumed betwe<strong>en</strong> 7:30 p.m. and 11 p.m.,wh<strong>en</strong> families gather together at home, asnearly three out <strong>of</strong> four do so.On week<strong>en</strong>ds, media usage behaviours basedon time <strong>of</strong> day do not differ much fromweekdays. People list<strong>en</strong> to the radio mostlyfrom early morning until 3 p.m., online usageis ev<strong>en</strong>ly distributed from 10 a.m. to midnight,although used less than on weekdays, and TVis watched mostly in the ev<strong>en</strong>ing and nighttimehours. On week<strong>en</strong>ds, newspapers are stillread mostly in the morning – with more than25 perc<strong>en</strong>t <strong>of</strong> people doing so. Newspaperreadership drops later in the day on week<strong>en</strong>ds.SIMULTANEOUS MEDIA USAGEMany research reports have found that people areincreasingly likely to multi-task instead <strong>of</strong> monotask,using more than one media form at a timeor executing another activity while using media.According to the SIMM study, it is commonfor people in the United States to <strong>en</strong>gage inother activities while consuming media – 68.8perc<strong>en</strong>t said they eat while using media, 58.3perc<strong>en</strong>t said they do housework and over half<strong>of</strong> the respond<strong>en</strong>ts said they cook or dolaundry while consuming media. In addition,more than 45 perc<strong>en</strong>t <strong>of</strong> people in the UnitedStates drive or talk on the phone, and morethan 25 perc<strong>en</strong>t work while using media.As <strong>of</strong> December 2007, more than 80 perc<strong>en</strong>t <strong>of</strong>U.S. respond<strong>en</strong>ts said they use mediasimultaneously, while only 18.7 perc<strong>en</strong>t saidthey never do so. More att<strong>en</strong>tion is giv<strong>en</strong> toWh<strong>en</strong> Using Media, What Type<strong>of</strong> Other Activities Do YouEngage In? U.S., Dec. 2007(Check All That Apply)Other2.1%Work on Car 10.7%Study15.2%Do Yardwork 20.0%Care for Childr<strong>en</strong> 24.0%Entertain24.0%Shop24.6%Work/Job26.5%Exercise/Play Sports 27.1%Do a Hobby/Craft 27.6%Make Grocery List 37.7%Personal Care 42.9%Drive/Commute 47.4%Talk on Phone 48.6%Cook57.7%Do Laundry58.0%Do Housework 58.3%Eat 68.8%Source: BIGresearch Simultaneous Media Usage (SIMM 11) Study,Dec 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%3002502001501005006am-10amMedia Usage by Dayparts: Week<strong>en</strong>d, U.S., Dec. 200710am-3pm3pm-7pm7pm-MidnightMidnight-6amPlay video gamesSource: BIGresearch, Simultaneous Media Usage (SIMM 11) Study, Dec 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008BlogInstant MessageRead the mailRead the newspaperRead magazinesRead/S<strong>en</strong>d E-mailSurf the InternetWatch TVList<strong>en</strong> to Web radioList<strong>en</strong> to Satellite radio (XM-Sirius)List<strong>en</strong> to the radio61
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER%50403020100Wh<strong>en</strong> Using MediaSimultaneously, Do You PayAtt<strong>en</strong>tion, U.S., Dec. 200748.1To one mediamore thanthe others33.2Equallyto eachmediaone medium over another by 48.1 perc<strong>en</strong>t,while 33.2 perc<strong>en</strong>t said they are able to payequal att<strong>en</strong>tion to each medium.SIMULTANEOUS MOBILE/INTERNETUSAGE18.7Don'tsimultaneouslyuse mediaSource: BIGresearch, Simultaneous Media Usage (SIMM 11) Study,Dec. 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Online simultaneous usage is more common;simultaneous usage with print media is rankedat the bottom.%10080604020Simultaneous Media Usage:Mobile Phone, U.S., Dec. 2007NeverRegularly or occasionally52.6 42.1 45.8 71.6 72.6 62.6 46.547.457.954.228.4 27.437.453.5television or list<strong>en</strong>ing to the radio; therefore,carrying on a phone conversation whilereading is arguably the most difficultcombination.%100806040200Simultaneous Media Usage:Online, U.S., Dec. 200763.1List<strong>en</strong>to theradio?Never72.8WatchTV?Regularly or occasionally36.9 27.2 63.1 63.2 45.9 32.136.9 36.8Readmagazines?Readth<strong>en</strong>ewspaper?54.1Readthemail?67.9Engagein otheractivities?Source: BIGresearch. Simultaneous Media Usage (SIMM 11) Study,Dec. 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Data shows that people seem to be gettingmore used to using the Internet and othermedia simultaneously more than using mobileand other media. More than 70 perc<strong>en</strong>t saidthey regularly or occasionally watch TV whileusing the Internet, while more than 60 perc<strong>en</strong>tlist<strong>en</strong> to the radio while also online. About 54perc<strong>en</strong>t read the mail, while much fewerrespond<strong>en</strong>ts said they read magazines ornewspapers while online,according to theBIGresearch Study. Meanwhile, only two orthree people out <strong>of</strong> t<strong>en</strong> said they read printmedia while online, much lower than thosewho list<strong>en</strong> to the radio or watch TV.0List<strong>en</strong>to theradio?Go Watchonline? TV?Readmagazines?Readth<strong>en</strong>ewspaper?Readthemail?Engagein otheractivities?Source: BIGresearch, Simultaneous Media Usage (SIMM 11) Study,Dec. 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Wh<strong>en</strong> using a mobile phone, more than half <strong>of</strong>U.S. respond<strong>en</strong>ts said they also regularly oroccasionally surf online, watch TV or <strong>en</strong>gagein other activities. List<strong>en</strong>ing to the radio is alsoquite popular (47.4 perc<strong>en</strong>t). However, only37.4 perc<strong>en</strong>t said they read the mail at thesame time, while fewer than 30 perc<strong>en</strong>t readmagazines or newspapers while talking on thephone. Reading is an active activity, comparedto passive activities such as watching62
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSNECESSARY TECHNOLOGIES:WHAT PEOPLE CAN’T LIVE WITHOUTIn the United StatesMobile phones are the lifelines people findmost difficult to give up, followed by theInternet, according to Pew Internet andAmerican Life Project surveys.Devices Hard to Give Up,U.S., Dec. 2007Mobile phone Internet TelevisionLandline/fixed E-mail Blackberry or wireless%telephonee-mail device7063605150474843 44 45 4338 38 38404037 3635 3430202210602002 2006 2007Source: John Horrigan, Mobile Access to Data and Information,Pew Internet & America Life Project, March 2008© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Betwe<strong>en</strong> 2002 and 2007, new media havebecome increasingly necessary to people inthe United States, while traditional mediaforms are losing ground. Mobile phones, theInternet and wireless e-mail devices havetak<strong>en</strong> a tighter hold on an increasing number<strong>of</strong> users. Meanwhile, television is slowly butsteadily declining as a media form peoplecan’t give up, from 47 perc<strong>en</strong>t in 2002 to 43perc<strong>en</strong>t in 2007.According to U.S.-based Pew Internet andAmerican Life Project surveys, more thanhalf <strong>of</strong> U.S. adults surveyed said they couldnot live without their mobile phones,followed by 45 perc<strong>en</strong>t who say they couldn’tgive up the Internet. The Blackberry/wirelesse-mail devices category, though only pickedby 36 perc<strong>en</strong>t, has grown six-fold since 2002.Landline phones, which 63 perc<strong>en</strong>t <strong>of</strong> peoplesaid would be the most difficult to give up in2002, fell to only 40 perc<strong>en</strong>t in 2007, thelargest drop <strong>of</strong> all. This dramatic decrease,coupled with the rise <strong>of</strong> mobile phones,points to the fact that mobiles are overtakingthe landline phone market. Many people areopting to have only one phone, and choosingmobiles over landlines.Devices Hard to Give Up,by Age Groups, U.S., Dec. 2007%Mobile phoneE-mailInternetTelevisionLandline/fixedtelephone706062586051 5250484643 4340 4040393737333435 34 3330252010018-29 30-49 50-64 65+Source: John Horrigan, Mobile Access to Data and Information,Pew Internet & America Life Project, March 2008© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Wh<strong>en</strong> brok<strong>en</strong> down by age group, notsurprisingly, an obvious tr<strong>en</strong>d appears. Theyoungest age group clings to new media, whilethe older age group prefers to stick with moretraditional media and devices. Among peoplein their 20s, more than half said giving up theirmobile phones and the Internet would bedifficult, while nearly 60 perc<strong>en</strong>t <strong>of</strong> those over65 said they cannot live without theirtelevisions and landline phones.Mobile phones, which have be<strong>en</strong> overtakinglandlines in the telephone sector, are moreheavily adopted by younger users. Mobilephone usage drops dramatically in the 50-64and 65+ age groups, compared with the twoyounger categories. Meanwhile, the oppositecan be said <strong>of</strong> those relying heavily onlandlines. The two youngest age categoriesrely much more on their mobiles thanlandlines, while the two older age groups can’tlive without their landlines, especially thoseage 65 and up.Reliance on television grows by age group,while the need for the Internet and mobilephones becomes weaker as age increases. Asstated earlier in the chapter, the Internet is usedmostly during the day and ev<strong>en</strong>ing, whiletelevision is used mostly in the ev<strong>en</strong>ing and atnight. The two overlap in the ev<strong>en</strong>ing, wh<strong>en</strong> itis possible that older people turn to television,while younger people turn to the Internet.Meanwhile, the age group that relies mostheavily on e-mail is highest for 30- to 49-yearolds,followed by those ages 18-29. However,those aged 50-64 are not far behind, with 35people, and 33 people aged 65 or older saidthey wouldn’t be able to give up e-mail easily.63
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER%605040302010Wh<strong>en</strong> viewed in terms <strong>of</strong> race, across theboard, mobile phones were the technologymost people said would be most difficult togive up, followed by the Internet. Hispanicsrely most heavily on mobile phones, followedby blacks and th<strong>en</strong> whites. Television is insecond place for blacks and whites, while theInternet is second for Hispanics. In third place,whites said the Internet would be difficult togive up, while in third place for blacks is thelandline telephone. For Hispanics, there was atie for third place, with both landlinetelephones and e-mail. Television is in lastplace for Hispanics, while e-mail is in lastplace for both blacks and whites.In Swed<strong>en</strong>Devices Hard to Give Up,by Race, U.S., Dec. 2007Mobile phoneE-mail4944 454036InternetTelevisionLandline/fixedtelephone5451 50 48433735 3636300White Black HispanicSource: John Horrigan, Mobile Access to Data and Information,Pew Internet & America Life Project, March 2008© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Mobile and the Internet are more important tothe younger age group, newspapers to theolder; TV makes the top <strong>of</strong> the list across agegroups.Things People Cannot LiveWithout, by Age, Swed<strong>en</strong>, 200616-25 yearsComputerInternetMobile phoneTVFixed phoneDVDCD playerMP3 playerRadioCarBooksVideoNewspaperMagazinesFree newspaper26-45 years 46-65 yearsTVMobile phoneFixed phoneComputerInternetCarRadioBooksDVDCD playerNewspaperMagazinesVideoMP3 playerFree newspaperFixed phoneCarRadioTVNewspaperMobile phoneComputerBooksInternetCD playerMagazinesDVDVideoFree newspaperMP3 playerSource: Kairos Future © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to a survey targeting Swedishpeople by Kairos Future, new media (theInternet and mobile phones) are mor<strong>en</strong>ecessary than traditional media (fixedphone, TV, newspapers) for young people.The top three most important things for thoseages 16- to 25-years-old are computers, theInternet and mobile phones. Rounding outthe top five are television and fixed phones,which are the two things that made the topfive in each <strong>of</strong> the age groups. Print media,such as newspapers, magazines and freepapers, hold the last three spots, strongevid<strong>en</strong>ce that younger media users prefer toget their news and information from newmedia, especially via online and mobiletechnologies.Swedish people betwe<strong>en</strong> ages 46 to 65 saidthey need landline/fixed phones, their carsand radios the most, with television in fourthplace and newspapers making it into the topfive. This is only group ranking newspaperswithin their top five. Besides choosing a car,the other four top choices are traditionalmedia. Mobile phone and the Internet areranked as the sixth and ninth. Fre<strong>en</strong>ewspapers are in the 14th spot, with this agegroup showing the widest gap betwe<strong>en</strong> freeand paid-for newspapers across the agegroups.For people betwe<strong>en</strong> ages 26 to 45, their topfive are TV, mobile phone, fixed phone,computer and the Internet. New media,including mobile phone and Internet, areobviously more important to them than to theolder g<strong>en</strong>eration, while newspapers andmagazines are not held as high inimportance, with newspapers in 10th andmagazine in 11th places. This age group, likethose aged 16 to 25, shares only televisionand fixed phone with the 46 to 65 age groupas being in its top five, and shares all <strong>of</strong> thetop five with the 16 to 25 age group,although they are ranked in a differ<strong>en</strong>t order.Free papers, like the youngest group, ranklast, while newspapers and magazines arealso in the bottom five.In Swed<strong>en</strong>, digital media consumption alsohas a strong relationship with age. Theyoungest g<strong>en</strong>eration measured marked thehighest usage in every digital activity.More than 70 perc<strong>en</strong>t <strong>of</strong> people betwe<strong>en</strong> ages16 and 25 upload photos online, s<strong>en</strong>d images64
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSUploaded photos to the InternetDigital Media Consumption by Age, Swed<strong>en</strong>, 2006S<strong>en</strong>t images from your mobile phoneWrote your own novels and poemsCreated a Web <strong>page</strong> or blogCreated your own movieS<strong>en</strong>t a podcast85211116Source: Kairos Future% 0 10 20 30 40 50 60 70 80 90© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200820192228364045455469717716-25Years26-4546-65from their mobile devices and write theirown novels and poems using digital devices.This is followed by more than 40 perc<strong>en</strong>t <strong>of</strong>people ages 25 to 45 doing so, and less than30 perc<strong>en</strong>t <strong>of</strong> people betwe<strong>en</strong> age 46 and 65who do so.Creating a Web <strong>page</strong> or blog is popularamong young people, with 45 perc<strong>en</strong>t sayingthey do so. For people above age 25, lessthan 20 perc<strong>en</strong>t do so.The only statistic that does not follow thetr<strong>en</strong>d <strong>of</strong> decreasing usage from uploadingphotos down to s<strong>en</strong>ding a podcast is thatmore 26- to 45-year-olds s<strong>en</strong>t images fromtheir mobile phones than uploaded photos tothe Internet, while fewer 16- to 25-year-oldsand 46- to 65-year-olds s<strong>en</strong>t images fromtheir mobiles than uploaded photos to theInternet. This could point to the heavierdep<strong>en</strong>d<strong>en</strong>ce on mobiles by 26- to 45-yearolds,versus higher popularity <strong>of</strong> photosharing and social networking sites by theyoungest age group.Creating movies is done by 36 perc<strong>en</strong>t <strong>of</strong> 16-to 25-year-olds. On the other hand, s<strong>en</strong>ding apodcast is the least popular activity, with lessthan five perc<strong>en</strong>t Swedish people doing so.Interestingly, more 46- to 65-year-olds arecreating their own movies than 16- to 25-year-olds who are s<strong>en</strong>ding podcasts.NOKIA’S STUDY: BEHAVIOURS AND MEDIAUSAGE ACROSS 12 COUNTRIESMedia usage around the world grows andchanges with new media innovations.Nokia’s study, “A Glimpse <strong>of</strong> the NextEpisode,” surveyed people in 12 countries inAmerica, Europe and Asia on behaviours andmedia usage. These include the United States,Canada, Brazil, Spain, Italy, Germany, UnitedKingdom, France, Russia, South Korea, Japanand India. (See graphics on <strong>page</strong>s 66 and 67)G<strong>en</strong>eral activitiesGoing to the cinema or live music ev<strong>en</strong>ts arestill quite popular, with more than 70 perc<strong>en</strong>t<strong>of</strong> respond<strong>en</strong>ts across the countries except inItaly doing so. However, in South Korea, lessthan 30 perc<strong>en</strong>t said they go to a live musicev<strong>en</strong>t.In North America, going to bars and clubsis a regular activity, which about 45 perc<strong>en</strong>t<strong>of</strong> the respond<strong>en</strong>ts in these countries sayingthey do so. This number is much higher inItaly, where nearly 70 perc<strong>en</strong>t do so, whilein South Korea, less than 40 perc<strong>en</strong>t go tobars and clubs.Channel/medium to access musicList<strong>en</strong>ing to the radio for music is still apopular global activity. More than 60 perc<strong>en</strong>t<strong>of</strong> the Nokia respond<strong>en</strong>ts in Canada, Germany,France and Russia are doing so. Meanwhile,list<strong>en</strong>ing to music using MP3 players is also65
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERGlobal Media Usage in 12 countriesG<strong>en</strong>eral activitieslist<strong>en</strong> to music for <strong>en</strong>tertainm<strong>en</strong>tgamble for <strong>en</strong>tertainm<strong>en</strong>tgo to live music ev<strong>en</strong>tsgo to the cinemago to bars and clubsgo to live gigs, bars and clubsgo to festivalsatt<strong>en</strong>d an ev<strong>en</strong>t in a virtual worldplay a sportplay in a band or make musicChannel/medium to access musiclist<strong>en</strong> to music on the radiolist<strong>en</strong> to music on an MP3 playerlist<strong>en</strong> to music on a mobile phoneexperi<strong>en</strong>ce music through TV networklike MTVexperi<strong>en</strong>ce music through the Internetand digital radio networksChannel to access TVwatch TV on televisionwatch TV on the Internetwatch TV on mobile deviceDevice ownershipsown a regular mobile deviceown a portable DVDown a PDAown a smart phoneown a digital cameraown a MP3 playerown a video-<strong>en</strong>abled MP3 playerown a portable games consoleown a laptopDownloaddownload media, film, musicand photos from the Internetdownload musicdownload music or video straightto a mobile deviceregularly download ringtones straightto a mobiledownload and watch pornographyon a mobile deviceregularly download and watch pornographydownload film to a mobile devicedownload music from online storesdownload film from online storesdownload in a digital formatUser-g<strong>en</strong>erated cont<strong>en</strong>tcreate mediaupload media to the Internetregularly create and post podcasts onlineregularly create and publish a podcastget paid for publishing media on the Internetare regular “Microbloggers” (uploadingeach detail in daily life to the Internet)regularly upload to blogs via mobilehave made music on a mobile deviceU.S. Canada Brazil93865061 5574 7548 41676525338946149648 2645 2095 918252231249101028238067Spain73341045938323Italy93656655793984812933Germany5664139084502769UK10*4726463644687239183810*10*France Russia S. Korea Japan98 99*15 687677272567 62574337938636 1030644090575270716227154210872554929401441010India77264579*85*89*80*5142*21*2523* Age 18-24Source: Nokia Nseries, “A Glimpse <strong>of</strong> the Next Episode,” Dec. 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200866
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDSGlobal Media Usage in 12 countriesHow to get music/filmshop for music at high street retailersshop for film at high street retailersr<strong>en</strong>t DVDs from r<strong>en</strong>tal storesbuy music from second-hand storesbuy music from superstores andsupermarketsbuy HD DVD formatrip films through BitTorr<strong>en</strong>t and sharing sitesuse file-sharing programmesuse peer to peer s<strong>of</strong>tware to access/share musicuse the Internet to share media throughpeer-to-peer s<strong>of</strong>twareaccess media and files stored on their PCor laptop via a mobile device, usingplace-shifting technologyGamesplay video gamesplay games onlineplay games on portable games consolesand mobile devicesplay games on portable games consolesplay games on a portable deviceplay games on a PC or laptopuse a games consolefemale respond<strong>en</strong>ts play MPORPGmale respond<strong>en</strong>ts play MPORPGplay games at a fri<strong>en</strong>d's houseOther online activitiesuse IM networks to chatregularly access social networking sitesare involved in social networkingregularly have VoIP conversationsread online blog for <strong>en</strong>tertainm<strong>en</strong>tbuy/sell goods on the InternetOther mobile activitieshave regular IM conversationsvia mobileaccess GPS and Google Mapsvia mobiletake pictures on a mobile devicebrowse the Internet on a mobile deviceregularly s<strong>en</strong>d e-mails from a mobile devicewatch films on a mobile phoneaccess news via a mobileOthersuse the Internet as a trusted source<strong>of</strong> infomationregularly visit trusted media brands fromradio, newspaper and TV for informationread traditional mediawould like all <strong>of</strong> their <strong>en</strong>tertainm<strong>en</strong>tplatforms available through one deviceU.S. Canada Brazil3310632526192349631254145585248Spain4818422442294936Italy31462417302010545650Germany203032555170UK5410France Russia S. Korea Japan66135262572445853504061101874257481853874436073 84 83 74India4977** Age 18-24Source: Nokia Nseries, “A Glimpse <strong>of</strong> the Next Episode,” Dec. 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200867
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERquite popular, especially among over half <strong>of</strong>Canadians and Russians, and four out <strong>of</strong> t<strong>en</strong>Japanese respond<strong>en</strong>ts. In tech-savvy Japan,nearly 40 perc<strong>en</strong>t also list<strong>en</strong> to music on theirmobile devices.Channel to access TVWatching a TV programme on a traditional TVset is still popular in the countries surveyed;more than 80 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts in Russia,the United States and Japan, and nearly 80perc<strong>en</strong>t in Italy do so. Accessing televisionprogrammes on the Internet or a mobile deviceis especially popular in South Korea and India,as 64 perc<strong>en</strong>t <strong>of</strong> Koreans watch it online, and45 perc<strong>en</strong>t in India and 40 perc<strong>en</strong>t in Koreawatch it via mobile.In most places, watching TV online is morepopular than on mobile devices. In Canadaand the United Kingdom, nearly half <strong>of</strong> thepopulation watch programmes online, while lessthan 30 perc<strong>en</strong>t choose watching it via mobile.Device ownershipDigital cameras and MP3 players have prettyhigh p<strong>en</strong>etration in g<strong>en</strong>eral – digital camerasreach more than 80 perc<strong>en</strong>t <strong>of</strong> those living inthe United States, Spain, Canada, Germany,France, India, Italy and Brazil, while MP3players are owned by more than 60 perc<strong>en</strong>t <strong>of</strong>the Nokia study respond<strong>en</strong>ts in India, SouthKorea, Germany, Spain, the United States,Italy, Brazil and Russia. Surprisingly, Japan didnot score as high as other countries, althoughprobably due to a higher p<strong>en</strong>etration <strong>of</strong> mobiledevices with camera and MP3 capabilities.DownloadsEight out <strong>of</strong> 10 Indian 18- to-24-year-oldsdownload music/film/photos from the Internet,compared with 72 perc<strong>en</strong>t and 50 perc<strong>en</strong>t in theUnited Kingdom and Germany doing so,respectively. In Italy and Germany, about 30perc<strong>en</strong>t download music. About 50 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts in the United States and 40 perc<strong>en</strong>t<strong>of</strong> those in the United Kingdom choose todownload music from online stores, while half<strong>of</strong> Indian respond<strong>en</strong>ts and 40 perc<strong>en</strong>t <strong>of</strong> SouthKoreans go to online shops to download films.User-g<strong>en</strong>erated cont<strong>en</strong>t and sharingUser-g<strong>en</strong>erated cont<strong>en</strong>t seems to have muchroom to improve, except for in Germany whereabout 70 perc<strong>en</strong>t make their own media, and inIndia, where more than 40 perc<strong>en</strong>t upload theirown media online. In the United Kingdom andItaly, however, less than 40 perc<strong>en</strong>t do so.Only one out <strong>of</strong> 10 Americans respond<strong>en</strong>tscreate or publish a podcast, or are paid forpublishing media online, and in Russia andFrance, few people do so as well.How to get music/filmIn Brazil and South Korea, getting or sharingmusic/films is quite popular; over half <strong>of</strong> thepopulation does so using peer-to-peer s<strong>of</strong>twareor sharing sites. In Italy and Spain, there arealso more than 40 perc<strong>en</strong>t doing the same thing.GamesPlaying interactive games is also popular; inFrance and Japan, more than 55 perc<strong>en</strong>t and 45perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts play video games,respectively. In Canada, online games reach atleast 60 perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts, while 53perc<strong>en</strong>t and 42 perc<strong>en</strong>t <strong>of</strong> people in Russia andSpain, respectively, play games on their PCs orlaptops.Playing games on portable or mobile devices isrelatively less popular. Reach is about 30 perc<strong>en</strong>tor less in Germany, Canada, the United States,Spain and Italy, and less than 10 perc<strong>en</strong>t in Russia.Other online and mobile activitiesNearly three out <strong>of</strong> four people in Japan readonline blogs regularly, while more than 50perc<strong>en</strong>t <strong>of</strong> Brazilian respond<strong>en</strong>ts and morethan 60 perc<strong>en</strong>t in Russia use instantmessaging networks to chat online. Socialnetworking is more popular in Russia,Germany, Canada and Brazil, with about halfor more <strong>of</strong> the respond<strong>en</strong>ts using these sites. InItaly, South Korea and France, socialnetworking sites are used by less than 20perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts.Mobile Internet is especially popular in Japanand India, with a reach <strong>of</strong> 85 perc<strong>en</strong>t and 77perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts, respectively.In Italy and Germany, the p<strong>en</strong>etration is about50 perc<strong>en</strong>t, while in Spain it is 36 perc<strong>en</strong>t.Camera-<strong>en</strong>abled mobile phones are the mostpopular in Japan, with more than 80 perc<strong>en</strong>tp<strong>en</strong>etration, while in Spain, nearly 50 perc<strong>en</strong>t<strong>of</strong> people use camera phones.OthersIn Japan, about three out <strong>of</strong> four people use theInternet as a trusted source <strong>of</strong> information. InFrance, 43 perc<strong>en</strong>t regularly visit trusted mediabrands, such as radio, newspaper and TV forinformation, and 60 perc<strong>en</strong>t read traditional media.68
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSWhile asked if they would like all <strong>of</strong> their<strong>en</strong>tertainm<strong>en</strong>t platforms in the one device,there is pretty high agreem<strong>en</strong>t across countries.More than 80 perc<strong>en</strong>t say yes in Russia andSouth Korea, while more than 70 perc<strong>en</strong>tagreed in Japan, France and Germany.MEDIA REACH BY COUNTRYIn g<strong>en</strong>eral, television still has the highestreach, while the Internet’s reach is particularlylow in BRIC countries, according to researchby MAGNA Global.TV in g<strong>en</strong>eral is still the highest reachingmedium, with more than 85 perc<strong>en</strong>tp<strong>en</strong>etration, except for in Germany and India.Radio reaches more than 60 perc<strong>en</strong>t <strong>of</strong> thepopulation, except for Spain, India and China,according to New York-based MAGNAGlobal.<strong>Newspapers</strong> still have p<strong>en</strong>etration <strong>of</strong> more than60 perc<strong>en</strong>t in Germany, China, the UnitedStates, Italy and the United Kingdom, but thereach is particularly lower in France andRussia, with less than 20 perc<strong>en</strong>t.Magazines have higher p<strong>en</strong>etration inGermany and France, with more than 85perc<strong>en</strong>t, but do not perform as well in theUnited States and India.The Internet, although still newly emerging,has a reach <strong>of</strong> more than 50 perc<strong>en</strong>t in most <strong>of</strong>the countries studied. In the United States,p<strong>en</strong>etration is at about 70 perc<strong>en</strong>t, while in theUnited Kingdom and Germany p<strong>en</strong>etration ismore than 60 perc<strong>en</strong>t. However, in the BRICcountries (Brazil, Russia, India and China),p<strong>en</strong>etration is about 20 perc<strong>en</strong>t or ev<strong>en</strong> lower,while in India, it is lower than five perc<strong>en</strong>t.U.S. household p<strong>en</strong>etration <strong>of</strong> consumermediaIn 2006, broadcast radio and broadcast TVp<strong>en</strong>etrated at least 98 perc<strong>en</strong>t <strong>of</strong> U.S.households, the media with the highest rates,according to the study “CommunicationsU.S. Household P<strong>en</strong>etrationRates <strong>of</strong> Consumer Media%Broadcast radioBroadcast televisionCDsVHSConsumer booksDVDsConsumer magazinesBox <strong>of</strong>ficeComputersWired cable TVMobile phonesConsole videogames<strong>Newspapers</strong>TurntablesMP3/iPodDigital cableCable modemsSatellite televisionHDTVVideo-on-demandPC gamesDSLDial-up InternetDVRsSatellite radioCable telephonyMobile gamesWi-Fi accessRBOC video TV20069998948181817774695755515037322927262524201918131210622Source: “Communications Industry Forecast 2007 – 2011,” VeronisSuhler Stev<strong>en</strong>son, and PQ Media Alternative Media Research Series.© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008Media Reach by Country, 2007%10090UK Germany France Italy Spain U.S. Brazil Russia India China80706050403020100TV Radio <strong>Newspapers</strong> Magazines InternetSource: MAGNA Global © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200869
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERIndustry Forecast 2007 – 2011” by VeronisSuhler Stev<strong>en</strong>son and PQ Media AlternativeMedia Research Series.CDs were also popular, reaching 94 perc<strong>en</strong>t <strong>of</strong>the households, while VHS, consumer booksand DVDs p<strong>en</strong>etrated about eight householdsout <strong>of</strong> 10. Other media with more than 50perc<strong>en</strong>t p<strong>en</strong>etration included consumermagazines, the box <strong>of</strong>fice (cinema, concerts,etc.), computers, wired cable TV, mobilephones, console video games and newspapers.In 2006, many new digital media were stilldeveloping, such as digital cable, satellite TV,HDTV and video-on-demand, which reachedabout 20 to 30 perc<strong>en</strong>t <strong>of</strong> households, whileDSL, DVRs, satellite radio, mobile games,WI-FI access had ev<strong>en</strong> lower p<strong>en</strong>etration.U.S. digital media p<strong>en</strong>etrationAccording to MAGNA Global, digital mediap<strong>en</strong>etration in the United States will continuerising into 2011 from its 2000 levels.Almost all digital media reached less than 10perc<strong>en</strong>t in 2000 in the United States, except forthe mobile phone (about 40 perc<strong>en</strong>t) anddigital cable/satellite and TelcoTV (about 20perc<strong>en</strong>t).In 2011, U.S. digital TV shipm<strong>en</strong>ts areexpected to increase p<strong>en</strong>etration, rising toabout 120 perc<strong>en</strong>t, while mobile phonesubscription will also increase reach to 110perc<strong>en</strong>t. Digital cable/satellite and TelcoTVhouseholds and broadband households willreach about 80 perc<strong>en</strong>t.Digital video recorder households, highdefinitionTV and satellite radio subscriptionsare forecast to have a relatively lower reach by2011, each at less than 40 perc<strong>en</strong>t.Time sp<strong>en</strong>t with media by type, UnitedStatesAccording to Veronis Suhler Stev<strong>en</strong>son andPQ Media, during the <strong>en</strong>tire year <strong>of</strong> 2006, theaverage U.S. user sp<strong>en</strong>t more than 2,500 hourson broadcast and out-<strong>of</strong>-home media,accounting for more than 73 perc<strong>en</strong>t <strong>of</strong> thetotal time sp<strong>en</strong>t on media. Print media,however, only made up 419 hours, or 11.9perc<strong>en</strong>t <strong>of</strong> the total share. Entertainm<strong>en</strong>tmedia, such as the box <strong>of</strong>fice, video, music orvideo games, took up 338 hours total, with ashare <strong>of</strong> almost 10 perc<strong>en</strong>t. The time sp<strong>en</strong>t onpure-play digital media, including mobile andthe Internet, totalled 189 hours, onlyaccounting for 5.3 perc<strong>en</strong>t.Time Sp<strong>en</strong>t with Media by Type,U.S., 2006(Hours per person, per year, %)Entertainm<strong>en</strong>tmedia (3)338Printmedia (2)41911.9%9.6%Pure-playdigital media (4)1895.3%73.2%Broadcast &out-<strong>of</strong>-homemedia (1)2,584(1) Broadcast television, broadcast & satellite radio, cable, satellite &RBOC TV services and out-<strong>of</strong>-home media(2) Consumer books, consumer magazines, newspapersand yellow <strong>page</strong>s(3) Box-<strong>of</strong>fice, home video, in-flight <strong>en</strong>tertainm<strong>en</strong>t, recorded musicand video games(4) Pure-play Internet and pure-play mobileSource: “Communications Industry Forecast 2007 – 2011,” VeronisSuhler Stev<strong>en</strong>son, and PQ Media Alternative Media Research Series© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%140120100806040200U.S. Digital Media P<strong>en</strong>etration, 2000 – 20112000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011U.S. digital cable, satelliteand Telco TV householdsU.S. DVR subscriptionsU.S. VOD householdsU.S. broadband householdsU.S. satellite radiosubscriptionsU.S. HD subscriptionsU.S. digital TV shipm<strong>en</strong>tsU.S. mobile phonesubscriptionsSource: MAGNA Global © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200870
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSMEDIA INFLUENCE DURING THEPURCHASE PROCESS, UNITED STATESThe Internet is heavily relied on by shoppers,but newspapers also provide neededinformation on where to shop.Media Influ<strong>en</strong>ce Duringthe Purchase Process, U.S., 2007%100806040200RadioMagazinesBroadcast TV48InitialAwar<strong>en</strong>essFurtherLearnedCable TV<strong>Newspapers</strong>WOMDecidingwhereto buyInternet1 02 12 35 43 36 35 458128826820 212357 55 56PurchaseDecisionSource: Online Publishers <strong>Association</strong> and OTX, “Frames<strong>of</strong> Refer<strong>en</strong>ce: Online Video Advertising, Cont<strong>en</strong>t and ConsumerBehaviour”, June 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008During the purchase process, the mostinflu<strong>en</strong>tial medium to U.S. consumers is theInternet, followed by word-<strong>of</strong>-mouth andnewspapers, according to the study “Frames <strong>of</strong>Refer<strong>en</strong>ce: Online Video Advertising, Cont<strong>en</strong>tand Consumer Behavior,” by OnlinePublishers <strong>Association</strong> and OTX.The Internet takes the lead, especially in thelater stages <strong>of</strong> the buying process. In the firstphase, initial awar<strong>en</strong>ess, 48 perc<strong>en</strong>t <strong>of</strong> therespond<strong>en</strong>ts said they are influ<strong>en</strong>ced by theInternet. In the later phases, the number is at orexceeds 55 perc<strong>en</strong>t wh<strong>en</strong> it comes to learningmore about the purchase, deciding where tobuy and the final purchase decision.Word <strong>of</strong> mouth is ranked as the second mostinflu<strong>en</strong>tial, especially while making the finalpurchase decision. Tw<strong>en</strong>ty-six perc<strong>en</strong>t <strong>of</strong> therespond<strong>en</strong>ts said word <strong>of</strong> mouth influ<strong>en</strong>cestheir final decision on whether to make apurchase.<strong>Newspapers</strong> are in the third place, and are attheir most influ<strong>en</strong>tial wh<strong>en</strong> it comes to helpingpeople decide where to buy something. Twelveperc<strong>en</strong>t said they are influ<strong>en</strong>ced by newspaperswh<strong>en</strong> deciding where to make the purchase,while 8 perc<strong>en</strong>t said newspapers influ<strong>en</strong>cethem wh<strong>en</strong> it comes to initial awar<strong>en</strong>ess andlearning further about the product, as well asthe final purchase decision. Consumers’ trustin newspapers as a reliable media brand isimportant for marketers who want to get theirnames in front <strong>of</strong> shoppers, who are lookingfor a place to make their purchases.Broadcast and cable TV, magazines and radioare media with only slight influ<strong>en</strong>ce during thepurchase process, according to the OPA study.Broadcast and cable television’s influ<strong>en</strong>cewanes as the process evolves, pointing toeffectiv<strong>en</strong>ess in making products known, butshows that television is not as effective asother mediums in providing furtherinformation on products.U.S. CONTENT SUBSCRIPTION SERVICESADOPTIONYounger people are more likely to adoptsocial networking, user-g<strong>en</strong>erated cont<strong>en</strong>tand music services online or on portabledevices, while TV premium video cont<strong>en</strong>t andnewspaper adoption is preferred by middleagedand older people.Cont<strong>en</strong>t subscription services in differ<strong>en</strong>tmedia are not yet popular in the United States.For television, premium video cont<strong>en</strong>t is morepopular among people age 35 or older, whileonly less than 20 perc<strong>en</strong>t <strong>of</strong> people age 34 andyounger use it, according to the IBM GlobalBusiness Services’ cont<strong>en</strong>t subscription study,The <strong>en</strong>d <strong>of</strong> advertising as we know it.In terms <strong>of</strong> online, social networking sites arethe most popular, adopted strongly across agegroups, except for those age 55 and over, inwhich there is only partial adoption. More thanhalf <strong>of</strong> 18- to-34-year olds use it, and about 30to 39 perc<strong>en</strong>t <strong>of</strong> people ages 35 to 54 haveadopted social networking. User-g<strong>en</strong>eratedcont<strong>en</strong>t and music services are relativelypopular online activities adopted amongyounger g<strong>en</strong>erations as well, with 30 to 39perc<strong>en</strong>t adopting user-g<strong>en</strong>erated cont<strong>en</strong>t sites,and 10 to 19 perc<strong>en</strong>t adopting online musicservices.Online newspaper subscriptions, however, aremost popular among people ages 35 to 44,followed by those ages 55 and up. E-books,71
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERU.S. Cont<strong>en</strong>t Subscription Services Adoption by Age GroupHighest adoptionacross age groupsMass adoption (greater than or equal to 50%)Significant adoption (40-49%)Strong adoption (30-39%)Moderate adoption (20-29%)Partial adoption (10-19%)Niche adoption (less than 10%)TVOnlinePremium video cont<strong>en</strong>tSocial networking sitesUser-g<strong>en</strong>erated cont<strong>en</strong>t sitesMusic service (e.g. Rhapsody)Newspaper subscriptione-book subscriptionPortable Music service (e.g. iTunes)MobileInternet planCont<strong>en</strong>t plan18-24 25-34 35-44 45-54 55+Source: IBM Institute for Business Value analysis based on an amalgamation <strong>of</strong> industry forecast, “The <strong>en</strong>d <strong>of</strong> advertising as we know it,” 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008however, are still a niche, with less than 10perc<strong>en</strong>t adoption across age groups.According to the study, those subscribing toan online newspaper could indicate thatpeople seeking quality news and information,g<strong>en</strong>erally loyal newspaper readers, and whohave the money to pay for a subscription, arebecoming more willing to pay for onlinecont<strong>en</strong>t.Music services on portable devices have be<strong>en</strong>mostly adopted by younger people,especially among those aged 18 to 24. Therate <strong>of</strong> adoption for portable music servicesdecreases with age.Mobile Internet plans are ev<strong>en</strong>ly acceptedamong those ages 44 and under, with highestadoption betwe<strong>en</strong> age 25 to 34. Mobilecont<strong>en</strong>t plans, however, only have a nicheadoption rate <strong>of</strong> less than 10 perc<strong>en</strong>t acrossall the groups, but is still highest with thoseages 25 to 34.Online Usage and User pr<strong>of</strong>ileGLOBAL INTERNET USAGEInstant messaging is used by half <strong>of</strong> the globalonline population, while TV and music onlineare also popular.<strong>World</strong>wide Internet UsageWh<strong>en</strong> asked whatthey use the Internet for:Have IM conversationsWatch TVBrowse music onlineRegularly write, comm<strong>en</strong>t and blogShare free musicAccess social networking sitesAtt<strong>en</strong>d ev<strong>en</strong>ts in virtual worldsShowcase personal creative workContribute to story lines on InternetTV programmesPres<strong>en</strong>t their own podcastsGet paid for uploading film/musiccont<strong>en</strong>tSet up own pirate radio channels% <strong>of</strong>respond<strong>en</strong>ts46%39%37%29%27%28%11%10%9%8%7%6%Source: Nokia Nseries, “A Glimpse <strong>of</strong> the Next Episode,” Dec. 2007© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200872
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSAccording to a study by Nokia that targetedonline users across countries, instantmessaging was used by 46 perc<strong>en</strong>t <strong>of</strong> therespond<strong>en</strong>ts, while 39 perc<strong>en</strong>t and 37 perc<strong>en</strong>twatch online TV and browse music online,respectively.Blogging and social networking are used bythree out <strong>of</strong> 10, the study states, while othertypes <strong>of</strong> user-g<strong>en</strong>erated cont<strong>en</strong>t still have somegrowth pot<strong>en</strong>tial. For example, pres<strong>en</strong>tingpodcasts or contributing to online TVprogrammes are only done by a niche, lessthan 10 perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts.GLOBAL LEADING ONLINE CATEGORIESSearch and G<strong>en</strong>eral Interest Portals &Communities are the most popular onlinecategories based on unique visitors;meanwhile, Instant Messaging, E-mail andMember Communities are more timeconsuming.Based on the January 2008 data from Niels<strong>en</strong>Online, as illustrated on <strong>page</strong> 74, search is themost popular online category for unique usersin Australia and throughout European countries,while G<strong>en</strong>eral Interest Portals & Communitiesmore popular in America, including the UnitedStates and Brazil. These two categories ing<strong>en</strong>eral reach about 80 perc<strong>en</strong>t <strong>of</strong> the onlinepopulation in each country surveyed. S<strong>of</strong>twareManufacturers and Member Communities arealso popular in most <strong>of</strong> the countries, withmore than 55 perc<strong>en</strong>t reach.However, the categories visited by most peopleare not necessarily the ones people sp<strong>en</strong>t themost time on. It is interesting that in Europeancountries Instant Messaging is the categoryonline users sp<strong>en</strong>t most <strong>of</strong> the time on, whilein the United States and Brazil, the most timeconsumingcategory is E-mail and MemberCommunities. Online games are anothercategory on the list throughout the country.The data indicate that although Search ownedthe most unique audi<strong>en</strong>ce, or, had the highestreach among all the categories, users justsimply come, find whatever they want, andleave. Categories that require more user<strong>en</strong>gagem<strong>en</strong>t, or are designed to for users tos<strong>en</strong>d messages back and forth, such as InstantMessaging, E-mail or Member Communities,take up the most <strong>of</strong> online time.G<strong>en</strong>erally speaking, Entertainm<strong>en</strong>t and News& Information are the online categories moreUnique Audi<strong>en</strong>ce & Active Reachin Four Online Categories,Jan. 2008News & InformationFrance20,8Switzerland (home only) 3,1USA125,8UK23,5Italy (home only)12,4Australia7,8Spain (home only)9,5Germany23,7Japan (home only) 30,3Brazil (home only) 13,2Entertainm<strong>en</strong>tFrance22,3USA136,2UK27,5Brazil (home only) 16,9Australia9,3Spain (home only) 11,3Japan (home only) 35,8Italy (home only)13,9Germany26,6Switzerland (home only) 2,9Curr<strong>en</strong>t Ev<strong>en</strong>ts & Global NewsUSAFranceSpain (home only)UKAustraliaBrazil (home only)Italy (home only)GermanySwitzerland (home only)Japan (home only)Videos/MoviesUSAFranceAustraliaSwitzerland (home only)Spain (home only)UKBrazil (home only)Italy (home only)Japan (home only)GermanyUniqueAudi<strong>en</strong>ce(millions)100,614,37,717,05,910,38,115,21,618,497,115,46,02,07,315,69,78,220,213,1ActiveReach79%78%78%71%66%66%66%66%64%62%84%84%84%80%79%79%75%74%74%72%62%54%54%52%50%49%43%42%40%39%60%58%51%50%50%47%46%44%42%36%% Changein Audi<strong>en</strong>cevs. Last Year15%7%7%5%15%4%4%-3%12%53%14%6%7%53%3%11%8%14%-2%11%8%22%0%8%10%49%15%-4%16%5%15%34%18%11%19%22%77%50%36%4%The above four tables are ranked by Active Reach (e.g. Where theyhave the greatest footprint)Source: Niels<strong>en</strong> Online © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008popular than Curr<strong>en</strong>t Ev<strong>en</strong>ts & Global Newsand Videos/Movies. Entertainm<strong>en</strong>t reached atleast 70 perc<strong>en</strong>t <strong>of</strong> the online population in thesurveyed countries, while News & Informationreached more than 60 perc<strong>en</strong>t. Brazil is themarket under developm<strong>en</strong>t, with a more than73
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERLeading Online Categories, by Unique Visitors and Total Time Sp<strong>en</strong>t,Jan. 2008RankAustraliaUniqueAudi<strong>en</strong>ce(millions)ActiveReachRankTotalMinutes(billions)1Search9,883%1Instant Messaging1,02G<strong>en</strong>eral Interest Portals & Communities9,177%2Member Communities0,73S<strong>of</strong>tware Manufacturers8,370%3Classifieds/Auctions0,54Member Communities6,555%4S<strong>of</strong>tware Manufacturers0,55Governm<strong>en</strong>t6,353%5E-mail0,4Brazil (home only)1G<strong>en</strong>eral Interest Portals & Communities19,291%1Member Communities5,12Search17,080%2Instant Messaging4,23Member Communities16,578%3E-mail1,24Instant Messaging16,277%4G<strong>en</strong>eral Interest Portals & Communities1,25E-mail15,774%5S<strong>of</strong>tware Manufacturers1,1Switzerland (home only)1Search3,383%1Instant Messaging0,32G<strong>en</strong>eral Interest Portals & Communities3,076%2Online Games0,23S<strong>of</strong>tware Manufacturers2,768%3G<strong>en</strong>eral Interest Portals & Communities0,24512345Internet Tools/Web ServicesCurr<strong>en</strong>t Ev<strong>en</strong>ts & Global NewsGermanySearchG<strong>en</strong>eral Interest Portals & CommunitiesS<strong>of</strong>tware ManufacturersMass MerchandiserMulti-category Telecom/Internet Services2,12,029,428,024,620,219,954%50%81%77%68%56%55%4512345S<strong>of</strong>tware ManufacturersFull Service Commercial Banks& Credit UnionsInstant MessagingG<strong>en</strong>eral Interest Portals & CommunitiesClassifieds/AuctionsE-mailS<strong>of</strong>tware Manufacturers0,10,12,92,92,41,91,812345SpainSearchS<strong>of</strong>tware ManufacturersG<strong>en</strong>eral Interest Portals & CommunitiesInstant MessagingE-mail16,214,714,713,412,788%79%79%72%68%12345Instant MessagingS<strong>of</strong>tware ManufacturersE-mailOnline GamesMember Communities3,91,71,51,41,112345FranceSearchG<strong>en</strong>eral Interest Portals & CommunitiesS<strong>of</strong>tware ManufacturersE-mailMass Merchandiser23,423,220,318,317,588%88%77%69%66%12345Instant MessagingE-mailS<strong>of</strong>tware ManufacturersG<strong>en</strong>eral Interest Portals & CommunitiesOnline Games3,82,21,81,31,312345ItalySearchG<strong>en</strong>eral Interest Portals & CommunitiesS<strong>of</strong>tware ManufacturersMember CommunitiesE-mail20,819,718,215,815,386%81%75%65%63%12345Instant MessagingS<strong>of</strong>tware ManufacturersMember CommunitiesOnline GamesE-mail4,02,31,51,21,212345UKSearchG<strong>en</strong>eral Interest Portals & CommunitiesS<strong>of</strong>tware ManufacturersMass MerchandiserMember Communities29,426,522,819,319,289%80%69%59%58%12345Instant MessagingMember CommunitiesE-mailOnline GamesSearch3,42,82,21,91,312345USAG<strong>en</strong>eral Interest Portals & CommunitiesSearchS<strong>of</strong>tware ManufacturersInternet Tools/Web ServicesMember Communities139,4136,3113,7108,8106,586%84%70%67%66%12345E-mailG<strong>en</strong>eral Interest Portals & CommunitiesOnline GamesMember CommunitiesInstant Messaging22,616,114,613,712,9Source: Niels<strong>en</strong> Online © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200874
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS53 perc<strong>en</strong>t growth rate for both categories,which is much higher than other countries.Curr<strong>en</strong>t Ev<strong>en</strong>ts & Global News andVideos/Movies, on the other hand, had lowerp<strong>en</strong>etration. In some <strong>of</strong> the countries, the reachfor these categories is ev<strong>en</strong> less than 50perc<strong>en</strong>t. However, there is a stronger growthpot<strong>en</strong>tial for both categories, since most <strong>of</strong> thecountries reported a double-digit growth ratein January 2008.GLOBAL ONLINE USAGE BY TIME OF DAYAfternoon and early ev<strong>en</strong>ing are the times <strong>of</strong>day wh<strong>en</strong> most online usage occurs.It is a global tr<strong>en</strong>d that people go onlinemostly in the afternoon or early ev<strong>en</strong>ing. In theUnited States and France, online usage ishighly conc<strong>en</strong>trated from 2 p.m. to 7 p.m.,with more than 80 perc<strong>en</strong>t and 75 perc<strong>en</strong>tsurfing online during this time, respectively.In Japan, online usage is relatively scatteredcompared to European and American countries,with the highest reach <strong>of</strong> more than 60 perc<strong>en</strong>tbetwe<strong>en</strong> 8 p.m. to 10 p.m. This may be a result<strong>of</strong> the high p<strong>en</strong>etration <strong>of</strong> other Internet-<strong>en</strong>ableddevices, which may dilute home online reach.AVERAGE MONTHLY TIME SPENT ONLINEPER PERSONAn average U.S. user sp<strong>en</strong>t 28.5 hours onlineper month, while an average Fr<strong>en</strong>ch user sp<strong>en</strong>tnearly 20 hours.According to the Niels<strong>en</strong> Online data fromJanuary 2008, the United States tops all othercountries with the most average monthly timeAverage MonthlyInternet-Related Timeper Person, Jan. 2008CountryUSAFranceSpainUKBrazil (home only)GermanyItalyAustraliaSwitzerland (home only)Source: Niels<strong>en</strong> Online© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008Average monthlyInternet-relatedTime per Personhh:mm:ss28:31:1419:55:3218:48:5218:01:2416:58:2216:45:5316:01:0114:58:2712:54:48Online Usage Reach in Dayparts, Jan. 2008Hour <strong>of</strong> Dayin Jan 200812:00 am1:00 am2:00 am3:00 am4:00 am5:00 am6:00 am7:00 am8:00 am9:00 am10:00 am11:00 am12:00 pm1:00 pm2:00 pm3:00 pm4:00 pm5:00 pm6:00 pm7:00 pm8:00 pm9:00 pm10:00 pm11:00 pmUSA39%26%19%16%15%22%37%53%62%71%75%76%79%79%80%82%83%83%81%80%77%72%65%52%France33%21%14%8%7%8%16%34%50%62%70%74%75%75%76%77%77%80%82%80%75%68%61%49%Australia33%21%14%10%9%12%24%40%53%63%68%70%71%71%71%72%75%74%73%72%72%68%60%46%Brazil(home only)33%21%14%10%9%12%24%40%53%63%68%70%71%71%71%72%75%74%73%72%72%68%60%46%Switzerland(home only)31%17%10%7%5%7%14%28%41%55%61%68%68%70%70%71%73%75%77%75%74%68%59%44%Spain43%32%22%16%10%8%11%19%35%47%56%63%66%69%68%65%67%69%70%70%67%64%58%50%Germany31%20%14%9%8%9%16%24%36%49%60%66%68%68%71%72%73%74%74%74%69%61%52%42%UK30%21%13%10%7%7%13%25%43%54%62%66%68%69%70%71%74%73%70%67%64%60%55%43%Italy31%20%12%8%6%5%8%20%37%51%58%62%64%64%66%67%71%71%71%67%60%58%51%43%Japan(home only)43%30%19%12%9%10%15%23%33%44%51%53%52%53%54%56%57%58%57%56%60%63%61%55%over 80% 70-79% 60-69% 50-59%Source: Niels<strong>en</strong> Online © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200875
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERsp<strong>en</strong>t online per person. A U.S. online usersp<strong>en</strong>t more than 28.5 hours surfing the Internetin January, doubled the usage time in Australiaand Switzerland. France, with just under 20hours, ranked in the second spot, while Spainand the United Kingdom followed, each withmore than 18 hours in January 2008.ONLINE USERS VS BROADBANDHOUSEHOLDSThe United States ranks on top based on th<strong>en</strong>umbers <strong>of</strong> users and households, while SouthKorea leads in p<strong>en</strong>etration <strong>of</strong> both.Internet Users andBroadband Households, 2007Internetusers(million)1 US 188.12 Japan 89.13 Germany 42.04 UK37.25 South Korea 35.66 France 30.97 Italy30.18 Canada 21.89 Spain 18.310 Australia 13.6% <strong>of</strong> totalpopulation65.269.951.061.272.750.651.865.345.266.7Broadbandhouseholds(million)65.026.014.813.913.012.89.38.16.34.3Source: eMarketer, Nov. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008% <strong>of</strong> totalhouseholds53.857.338.654.679.848.041.662.647.553.9In 2007, the United States ranked ahead <strong>of</strong>other countries in terms <strong>of</strong> either online usersor broadband households. However, if we rankthose countries by p<strong>en</strong>etration, South Korea ison the top with 72.7 perc<strong>en</strong>t <strong>of</strong> online reach,and almost 80 perc<strong>en</strong>t <strong>of</strong> broadband householdp<strong>en</strong>etration.Japan, Australia, Canada, the United Statesand the United Kingdom also reported anInternet p<strong>en</strong>etration <strong>of</strong> more than 60 perc<strong>en</strong>t,while Spain lags behind with merely 45perc<strong>en</strong>t reach. In terms <strong>of</strong> broadbandp<strong>en</strong>etration, Canada is in the second spot with62.6 perc<strong>en</strong>t reach. The rest <strong>of</strong> countries lagbehind with less than 60 perc<strong>en</strong>t p<strong>en</strong>etration.Germany, in particular, has the lowestp<strong>en</strong>etration at 38.6 perc<strong>en</strong>t.Advertising formats trusted by online usersInterpersonal recomm<strong>en</strong>dation/users’ opinionsand newspapers are the most trusted types <strong>of</strong>advertising, while online/mobile ads aretrusted by fewer respond<strong>en</strong>ts.With increasingly higher online p<strong>en</strong>etration,what types <strong>of</strong> ad formats do the growingnumber <strong>of</strong> users trust most? According toresearch firm eMarketer and Niels<strong>en</strong>,interpersonal recomm<strong>en</strong>dation, such as word<strong>of</strong> mouth, is still the most trusted ad format, bynearly 80 perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts.Consumer opinion posted online is also highlytrusted, with more than 60 perc<strong>en</strong>t saying so.It is interesting that many online users stillthink newspaper ads are more trusted than adsplaced with other sources, with 63 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts saying they trust newspaper adsmore than online ads, television ads and ev<strong>en</strong>magazine advertising. New online ad formats,Types <strong>of</strong> Advertising Trusted by Online Users <strong>World</strong>wide, April 2007Recomm<strong>en</strong>dations from consumers*<strong>Newspapers</strong>Consumer opinions posted onlineBrand Web sitesTVMagazinesRadioBrand sponsorshipsE-mail signed-up forAds before moviesSearch <strong>en</strong>gine adsOnline banner adsText ads on mobile phones18263834636160565654494978% <strong>of</strong> respond<strong>en</strong>ts 0 20 40 60 80 100* ie word <strong>of</strong> mouthSource: eMarketer / The Niels<strong>en</strong> Company, “Online Global Consumer Study”, October 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200876
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSSouth KoreaAustraliaNew ZealandHong KongSingaporeTaiwanJapanMalaysiaChinaIndiaAsia Pacific*<strong>World</strong>wideInternet Users in Asia Pacific, by Country, May 2007P<strong>en</strong>etration(%)6562605958504945931016Monthlyunique users(thousands)26,27810,1091,9493,5502,2269,31953,6827,52191,52722,805283,519771,997Averagedaily users(thousands)14,7185,1471,0301,9241,1134,81426,1572,36238,0238,415126,398427,005Averageusagedays per user* Total Asia Pacific includes countries others than the t<strong>en</strong> countries for which comScore provides individual country-level reporting.Note: ages 15+; home and work locations; excludes traffic from public computers such as those at Internet cafes or access from mobile phones or PDAs.Source: comScore, PricewaterhouseCoopers and Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200817.415.816.416.815.516.015.19.712.911.413.817.1Averagemonthlyhours per user31.221.220.725.525.727.419.215.219.314.720.225.2Averagemonthly<strong>page</strong>s viewedper user4,5461,7581,8242,5452,4062,6592,2001,2392,2791,4002,1712,519including search advertising, online bannersand mobile text ads, were ranked at thebottom, with only less than 40 perc<strong>en</strong>t statingthey trusted trusted those ads. This indicatesthat although the online and mobile ad space isgrowing aggressively, it still takes time to earnusers’ trust.ONLINE USAGE IN ASIAAsia online usage lags behind the globalaverage. South Korea tops in terms <strong>of</strong>p<strong>en</strong>etration, usage and <strong>page</strong>s viewed per user.In May 2007, the more than 263 million totalunique users in the Asia Pacific regionaccounted for 36.8 perc<strong>en</strong>t <strong>of</strong> the worldwideunique users. However, in terms <strong>of</strong>p<strong>en</strong>etration, average usage days per user andaverage monthly <strong>page</strong>s viewed per user, theregion lagged behind.Online reach in the <strong>en</strong>tire Asia Pacific region isonly about 10 perc<strong>en</strong>t, and is dragged down byunderdeveloped countries such as China, India,and many others whose Internet isundeveloped, at lower than the global average<strong>of</strong> 16 perc<strong>en</strong>t.In terms <strong>of</strong> average usage days per user, anaverage global online user utilised the Internetfor 17.1 days in May 2007, while an averageAsian user utilised it for only 13.8 days.Regarding the <strong>page</strong>s views per user, an averageglobal user surfed more than 2,500 <strong>page</strong>sduring the month, while an average Asian userviewed about 350 <strong>page</strong>s less, with 2,171 <strong>page</strong>sreported.In those Asian countries, although China leadsin the monthly unique users and average dailyusers, the country’s p<strong>en</strong>etration and usage perperson actually lags far behind. The Internetonly reaches nine perc<strong>en</strong>t <strong>of</strong> the population ina month, which is about 91 million people.South Korea, as discussed earlier, is thechampion in terms <strong>of</strong> p<strong>en</strong>etration, averageusage per user and <strong>page</strong>s viewed per user.Online p<strong>en</strong>etration in the country has alreadyreached 65 perc<strong>en</strong>t, and a user on average surfsonline more than 17 days in a month and 31.2hours total. An average Korean user viewedmore than 4,500 Web <strong>page</strong>s in a month, almostdouble that <strong>of</strong> other Asian countries, and morethan 2,000 <strong>page</strong>s more than the average userworldwide.TOP 3 PROPERTIES IN ASIAEstablished brands are preferred in Asia, withChina and South Korea especially b<strong>en</strong>t forlocal players.In terms <strong>of</strong> the top three properties with themost monthly unique visitors in May 2007,users in the Asia Pacific region seem to preferestablished brands such as Yahoo! andMicros<strong>of</strong>t, unlike users worldwide who prefernewly emerging Google.It is also interesting that China and SouthKorea are the two countries with a particularb<strong>en</strong>t for local sites. Although Micros<strong>of</strong>t sitestake the top spot in China, the second and thirdspots are both local players – Baidu andTENCENT. In South Korea, Micros<strong>of</strong>t is77
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERTop 3 Properties Based onMonthly Unique Visitors,Asia-Pacific<strong>World</strong>wideAsia-PacificAustraliaChinaHong KongIndiaJapanMalaysia1Google SitesYahoo! SitesMicros<strong>of</strong>t SitesMicros<strong>of</strong>t SitesYahoo! SitesYahoo! SitesYahoo! SitesYahoo! Sites2Micros<strong>of</strong>t SitesMicros<strong>of</strong>t SitesGoogle SitesBaidu SitesMicros<strong>of</strong>t SitesGoogle SitesMicros<strong>of</strong>t SitesGoogle Sites3Yahoo! SitesGoogle SitesYahoo! SitesTENCENTGoogle SitesMicros<strong>of</strong>t SitesGoogle SitesMicros<strong>of</strong>t SitesNew Zealand Micros<strong>of</strong>t Sites Google Sites Fairfax MediaSingaporeSouth KoreaTaiwanYahoo! SitesNHN CorporationYahoo! SitesMicros<strong>of</strong>t SitesLycos SitesMicros<strong>of</strong>t SitesGoogle SitesMicros<strong>of</strong>t SitesGoogle SitesNote: Total Asia Pacific, including countries other than the 10countries that comScore provides individual country level reporting.Excludes traffic from public computers such as Internet cafes oraccess from mobile phones or PDAS.Home and work locations, age 15+.Source: comScore, May 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008pushed to third place, while the top spot is apurely local player, NHN. Although the secondplayer, Lycos sites, is a U.S. company, it isactually a wholly-owned subsidiary <strong>of</strong> one <strong>of</strong>the largest Internet portals in Korea.ONLINE USAGE IN THE UNITED STATESThe online population accounts for more than70 perc<strong>en</strong>t, with most users accessing theInternet via broadband.100%InternetUsers71%NonUsers29%U.S. Internet Adoption472 25 15272Broadband at homeDial-up connectionConnection typ<strong>en</strong>ot specifiedUse Internet at work onlyUse Internet in locationother than work or homeDo not use a computerat work, school, homeor elsewhereHave access to acomputer, but do not useInternet or e-mailSource: Pew Internet Project, February - March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to data from the Pew InternetProject, during February and March 2007, 71perc<strong>en</strong>t <strong>of</strong> the U.S. population used theInternet, while 29 perc<strong>en</strong>t did not use theInternet at all.Tw<strong>en</strong>ty-sev<strong>en</strong> perc<strong>en</strong>t <strong>of</strong> the U.S. populationdoes not use computers; they do not usecomputers at work, school, home or any otherplace, while another two perc<strong>en</strong>t do haveaccess to a computer, but do not use theInternet or e-mail.Apart from the 29 perc<strong>en</strong>t who are non-users,another 47 perc<strong>en</strong>t access the Internet viabroadband at home, while 15 perc<strong>en</strong>t use adial-up connection. A small portion <strong>of</strong> peopleuse the Internet at work, or place other thanwork or home.U.S. Adult Internet Users Pr<strong>of</strong>ile,by Access Technology,June – Sept. 2007% <strong>of</strong> respond<strong>en</strong>tsAge18-30 (G<strong>en</strong>eration Y)31-42 (G<strong>en</strong>eration X)43-61 (Baby boomers)62-71 (Matures)71+ (After work)Household income
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSHowever, for those who use dial-up at home,there is no significant differ<strong>en</strong>ce betwe<strong>en</strong> ageor education. For broadband users, higheraccess is in proportion with younger age,higher income and higher education status.Nearly four out <strong>of</strong> five G<strong>en</strong>X or G<strong>en</strong>Y havebroadband access, while only one out <strong>of</strong> fiveover age 71 has it. Broadband is alsoavailable at more than 80 perc<strong>en</strong>t <strong>of</strong>households with income <strong>of</strong> more thanUS$40,000, almost two times higher thanthose with income lower than $40,000. Morethan 80 perc<strong>en</strong>t <strong>of</strong> people with collegedegrees or higher have broadband access aswell, much higher than those with lesseducation.TIME SPENT ONLINE – OPA INTERNETACTIVITY INDEXInternet Activity IndexThe Internet Activity Index (IAI) provides a newway <strong>of</strong> looking at consumer <strong>en</strong>gagem<strong>en</strong>t online,dividing Internet usage into four distinct activities:cont<strong>en</strong>t, communications, commerce and search,defined as follows:• Cont<strong>en</strong>t - Web sites and Internet applicationsthat are designed primarily to provide news,information and <strong>en</strong>tertainm<strong>en</strong>t. Examples <strong>of</strong>those included in this segm<strong>en</strong>t are CNN.com,ESPN.com, Windows Media Player andMapQuest.Hours3.532.521.510.5Media Use Per Dayby U.S. Adult Internet Users3.28Echo Boomers (18-31)G<strong>en</strong>X (32-42)32.912.692.832.73 2.782.63Baby Boomers (42-62)All1.88 1.931.871.790Internet TV RadioSource: eMarketer, April 2007, from Lumin Collaborative© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008• Communications - Web sites and Internetapplications that are designed to facilitate theexchange <strong>of</strong> thoughts, messages, or informationdirectly betwe<strong>en</strong> individuals or groups <strong>of</strong>individuals. Examples <strong>of</strong> those included in thissegm<strong>en</strong>t are Yahoo! Mail, AOL Instant Mess<strong>en</strong>gerand MSN Groups.• Commerce - Web sites and Internet applicationsthat are designed for shopping online. Examples<strong>of</strong> those included in this segm<strong>en</strong>t are Amazon,eBay, Shopping.com and Dell.com.• Search - Web sites and Internet applicationsthat scan the Web to provide prioritised resultsbased on specific criteria from user-g<strong>en</strong>eratedrequests. Examples <strong>of</strong> those included in thissegm<strong>en</strong>t are Google Search, MSN Search andYahoo! Search.Source: OPA and Niels<strong>en</strong>//NetRatings© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Wh<strong>en</strong> the online population is brok<strong>en</strong> downby age group, we found that for youngerusers (Echo Boomers and G<strong>en</strong>X), theInternet has tak<strong>en</strong> more <strong>of</strong> their time (morethan three hours per day) than TV (about 2.7hours per day) and radio (less than two hoursa day). Baby Boomers betwe<strong>en</strong> age 42 and62 sp<strong>en</strong>t more time on TV (2.83 hours) thanthe Internet and radio (2.69 hours and 1.93hours, respectively).Among all U.S. adult online users, theInternet is ranked on the top with nearlythree hours <strong>of</strong> usage per day, exceeding TV(2.78 hours) and radio (1.87 hours).So, what do people actually do online?According to the OPA Internet Activity Index,cont<strong>en</strong>t still takes up the most time sp<strong>en</strong>tonline, and continued to grow in 2007. ByDecember 2007, it accounted for nearly half <strong>of</strong>online time.Communication made up the second most timesp<strong>en</strong>t online, but has shrunk since 2006. InDecember 2007, it accounted for nearly 30perc<strong>en</strong>t.Commerce takes up about 18 perc<strong>en</strong>t <strong>of</strong> timesp<strong>en</strong>t online. Additionally, search still made upthe least time sp<strong>en</strong>t online in December 2007;however, it is rising, up from 4.7 perc<strong>en</strong>t inDecember 2006 to 5.2 perc<strong>en</strong>t in December2007.79
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERInternet Activity Index – Share <strong>of</strong> Time Sp<strong>en</strong>t Online. U.S.,Dec. 2006 – Dec. 2007%100CommerceCommunicationsCont<strong>en</strong>tSearch18.0 16.1 15.8 15.6 15.3 14.4 13.8 14.1 14.1 14.6 15.0 17.0 17.58033.033.7 33.6 33.2 33.0 33.0 32.0 30.4 31.7 31.0 31.430.1 28.6604044.3 45.5 45.9 46.5 46.9 47.949.6 50.9 49.5 49.648.6 48.0 48.720% Change 0in Share <strong>of</strong> Time,Month-Over-MonthCommerceCommunicationsCont<strong>en</strong>tSearch4.7 4.7 4.7 4.8 4.7 4.7 4.5 4.6 4.7 4.8 4.9 4.9 5.2Dec-064.7-2.1-0.2-2.1Jan-07-10.62.12.70Feb-07-1.9-0.30.90Mar-07-1.3-1.21.32.1Apr-07-1.9-0.60.9-2.1May-07-5.902.10Jun-07-4.2-3.03.5-4.3Jul-072.2-5.02.62.2Aug-0704.3-2.82.2Sep-073.5-2.20.22.1Oct-072.71.3-2.02.1Nov-0713.3-4.1-1.20Dec-072.9-5.01.56.1Notes: * Excludes .gov and .edu Web sites, as well as pornographic domains. Perc<strong>en</strong>tage change indicates the perc<strong>en</strong>tage increase or decreasefrom the previous month’s value (November 2006 values not shown). Share <strong>of</strong> Time data based on Total Time values.** With September 2006 data, the IAI w<strong>en</strong>t through a scheduled data dictionary update that incorporates all new sites and online market changes.Because <strong>of</strong> this change, we are not posting August to September 2006 change in share <strong>of</strong> time comparisons.Source: OPA and Niels<strong>en</strong>/ /NetRatings © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Pages per person900800700600500400300200100Internet Activity Index – Pages Per Person, U.S.,Dec. 2006 – Dec. 2007Cont<strong>en</strong>t Communications Commerce Search0Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07Notes: Excludes .gov and .edu Web sites, as well as pornographic domains, instant messaging and media players.Source: OPA and Niels<strong>en</strong>//NetRatings © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In terms <strong>of</strong> <strong>page</strong>s viewed per person, U.S.online users read more and more cont<strong>en</strong>trelatedWeb <strong>page</strong>s along with time, from 596<strong>page</strong>s in December 2006 to 705 <strong>page</strong>s inDecember 2007. This indicates a tr<strong>en</strong>d thatusers are more willing to absorb informationonline. Commerce does not have a significantchange, while communications and search areboth growing, reaching 373 and 135 <strong>page</strong>s amonth, respectively.80
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSUnique Visitors (in millions)Internet Activity Index – Unique Visitors, U.S.,Dec. 2006 – Dec. 2007180Cont<strong>en</strong>t Communications Commerce Search160140120100806040200Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07Notes: Excludes .gov and .edu Web sites, as well as pornographic domains.Source: OPA and Niels<strong>en</strong>//NetRatings © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In terms <strong>of</strong> the monthly unique visitors, thediffer<strong>en</strong>ces betwe<strong>en</strong> the four categories are notreally significant. Cont<strong>en</strong>t was still ranked onthe top with 153 million unique visitors inDecember 2007, while communications andsearch also reported 139.7 million and 138million, respectively. At the same time, 127.4million unique visitors surfed on the commercerelatedWeb <strong>page</strong>s in December 2007.Cont<strong>en</strong>t reached more than nine out <strong>of</strong> 10online users, topping three other categories.Communications and search each alsoreached more than 80 perc<strong>en</strong>t, while e-commerce was a little lower, hitting 77.2perc<strong>en</strong>t in December 2007.Reach (%)100Internet Activity Index – Reach, U.S.,Dec. 2006 – Dec. 2007908070605040302010Cont<strong>en</strong>t Communications Commerce Search0Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07Notes: Excludes .gov and .edu Web sites, as well as pornographic domains.Source: OPA and Niels<strong>en</strong>//NetRatings © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200881
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERONLINE USAGE IN CHINAInternet p<strong>en</strong>etration will reach nearly 20perc<strong>en</strong>t in 2011, with those online usersskewed to young and male.According to research firm eMarketer, Chineseonline user numbers will grow from 111million in 2005 to 245.5 million in 2011, morethan doubling p<strong>en</strong>etration levels, from just 8.5perc<strong>en</strong>t to 18.1 perc<strong>en</strong>t in 2011.Online Activities <strong>of</strong> Chinese Internet Users, 2006E.journalPersonal home<strong>page</strong> serviceOnline chat roomsOnline recruitingOnline shoppingBlogsScool/classmates BBSInternet gamesDownloading/uploadding files(excluding music and video)List<strong>en</strong>ing/downloadding music(online radio)Instant messagingWatching/downloadding video (online TV)17.120.320.820.823.625.325.626.632.934.434.536.3Forum, BBs, discussion groups, etc.Obtaining information (products,services, jobs, healthcare, governm<strong>en</strong>t, etc.)Search <strong>en</strong>ginesNewsE-mail36.941.051.553.556.1% 0 10 20 30 40 50 60Source: China Internet Network Information C<strong>en</strong>ter (CNNIC), “19th Statistical Survey Report on the Internet Developm<strong>en</strong>t in China,” Jan. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Chinese Online Users Pr<strong>of</strong>ile, by G<strong>en</strong>der and Age, 2006G<strong>en</strong>derAge41-608.4%60+0.9%6-1817.2%Female41.7%31-4018.6%Male58.3%25-3019.7%18-2435.2%Source: China Internet Network Information C<strong>en</strong>ter (CNNIC), “19th Statistical Survey Report on the Internet Developm<strong>en</strong>t in China,” Jan. 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200882
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSInternet Users and P<strong>en</strong>etrationin China, 2005-2011Internet Users (millions)P<strong>en</strong>etration(%)Millions(%)3002018.116.91825015.416245,513.6227,32001411.8206,61210.2181,2150 8.510156,2133,58100 11165042002005 2006 2007 2008 2009 2010 2011Source: eMarketer © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In China, about 60 perc<strong>en</strong>t <strong>of</strong> online users aremale, while only four out <strong>of</strong> 10 are female. Tobreak down by age, more than 50 perc<strong>en</strong>t <strong>of</strong>the online population is under age 24, whileanother 40 perc<strong>en</strong>t fall betwe<strong>en</strong> ages 25 to 40.Chinese people above age 41 are very rarelyonline users and only account for less than 10perc<strong>en</strong>t.According to the China Internet NetworkInformation C<strong>en</strong>ter, most <strong>of</strong> the popular onlineactivities in China in 2006 weres<strong>en</strong>ding/receiving e-mail, accessing newsonline and using search <strong>en</strong>gines – with morethan half the online population doing so.Downloading film, music or files and usinginstant messaging is popular among three out<strong>of</strong> 10. Playing online games, shopping onlineand blogging are relatively less popular, withabout 20 to 30 perc<strong>en</strong>t doing so in 2006.WIRELESSGlobal wireless subscribersThe Asia Pacific region is growing strong andremains no.1 in wireless. Meanwhile, theUnited States is expected to lose its third spotto Latin America in by 2011.Global wireless subscribers keep on growing,from 1.1 billion in 2002 to 3.4 billion in 2011,with growth <strong>of</strong> more than three-fold, accordingto PricewaterhouseCoopers’ report, “GlobalEntertainm<strong>en</strong>t and Media Outlook 2007-2011.”In 2002, the Asia Pacific region and EMEAcountries (Europe, the Middle East and Africa)are the two biggest contributors, each makingup more than one-third <strong>of</strong> the total. However,the Asia Pacific region is growing rapidly, withalmost double-digits each year, and is expectedto reach 1.5 billion users in 2011, almost half<strong>of</strong> the total for that year.Millions4,0003,5003,0002,5002,0001,5001,0001,108CanadaLatin AmericaAsia PacificEMEAUnited States1,326Wireless Subscribers1,6231,9722,2742,5242,7652,9943,2033,4045000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal20029.136.130.714.914.422.320038.324.525.616.09.619.7200415.438.522.920.314.922.4200513.337.319.121.914.721.5200611.821.623.45.710.815.3200710.514.215.64.58.811.0200814.312.113.24.06.89.520098.310.011.92.94.88.320107.77.810.22.52.77.020113.65.19.22.91.96.32007-11CAGR8.89.812.03.34.98.4Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200883
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERLatin America is another strong grower – fromjust a niche in 2002 to nearly 500 million in2011, with the same double-digit growth from2002 to 2009.EMEA countries and the United States sawstrong increases before 2006, but growthweak<strong>en</strong>ed after that. EMEA countries are stillexpected to be the second largest contributor in2011, while the United States is forecast tolose its third spot to Latin America.Canada, although growing strong in the middle<strong>of</strong> the decade, is still expected to make up aniche in the year 2011.GLOBAL BROADBAND HOUSEHOLDSThe Asia Pacific region takes the lead in anumber <strong>of</strong> households, while Latin America isthe biggest gainer.Broadband is another hotshot in rec<strong>en</strong>t years.According to PricewaterhouseCoopers, themarket is expected to grow from 51.38 millionhouseholds worldwide in 2002 to nearly 540million households in 2011, with more thant<strong>en</strong>-fold growth.The Asia Pacific region, will take up thebiggest share throughout the 10 years. Itaccounted for less than 50 million in 2002, andis forecast to grow to more than 200 million in2011.EMEA and the United States make up thesecond and the third contributors in 2011, withnearly 150 million and nearly 100 millionhouseholds, respectively.A notable area for pot<strong>en</strong>tial growth is LatinAmerica, which reported three-digit growthbefore 2006, and still remains in the two-digitsafter that. Its 2007 to 2011 CAGR tops allother regions, with 30.8 perc<strong>en</strong>t.Canada is still a niche; its 2007 to 2011 CAGR isless than 10 perc<strong>en</strong>t, lower than its counterparts.GLOBAL BROADBAND PENETRATION/SUBSCRIPTIONSouth Korea leads in p<strong>en</strong>etration, while theUnited States leads in the number <strong>of</strong>subscribers.In 2005, according to ITU Information SocietyStatistics Database, South Korea (Republic <strong>of</strong>Korea) leads in broadband p<strong>en</strong>etration, withmore than 50 perc<strong>en</strong>t reach. It is ev<strong>en</strong> higherthan the second and the third spots – HongKong and Japan, which each have more than30 perc<strong>en</strong>t reach.In almost half <strong>of</strong> the countries surveyed, DSLtakes up the biggest part <strong>of</strong> the broadbandmarket, while in some tech-advanced countriessuch as South Korea, Japan and Italy, mobilebroadband is ev<strong>en</strong> bigger.Millions600500400CanadaLatin AmericaAsia PacificEMEAUnited StatesBroadband Households361.20417.73476.75539.81300301.65240.29200136.87182.2610051.3881.250% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal200264.7280.088.6103.979.588.1200339.3150.057.276.747.158.1200433.3147.461.5110.746.168.5200526.971.132.426.728.233.22006p13.6135.122.241.830.331.8200713.354.227.425.218.925.5200810.634.521.619.713.719.720098.526.417.314.711.515.720107.820.717.311.89.514.120118.220.917.29.77.213.22007-11CAGR9.730.820.116.112.117.6Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200884
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSGlobal Broadband P<strong>en</strong>etration vs. Broadband Subscribers, 2005Korea (Rep)Hong Kong, ChinaJapanItalySwed<strong>en</strong>NetherlandsD<strong>en</strong>markIcelandSwitzerlandNorwayFinlandUKAustriaCanadaTaiwanIsraelPortugalLuxembourgBelgiumFranceUnited StatesSingaporeAustraliaGermanySpainBroadband p<strong>en</strong>etration (%)DSLCable modemMobile broadbandOther broadband% and millions 010 20 30 40 50 60Number <strong>of</strong> broadband subscribers (million)United StatesJapanChinaKorea (Rep)ItalyUKGermanyFranceCanadaSpainTaiwanNetherlandsAustraliaBrazilHong Kong, ChinaSwed<strong>en</strong>BelgiumPortugalSwitzerlandAustriaD<strong>en</strong>markDSLIsraelCable modemFinlandMobile broadbandNorwayOther broadbandCzech Republic% and millions 010 20 30 40 50 60Source: ITU Information Society Statistics Database © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In terms <strong>of</strong> broadband subscribers, the UnitedStates is on the top with more than 50 millionusers. Japan, China and South Korea followbehind, while in China all the subscribers useDSL and cable modems, instead <strong>of</strong> moreadvanced technologies such as mobilebroadband.85
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERMillions140120100806040200Broadband Households in Asia Pacific,2004-20102004 2005 2006 2007 2008 2009 2010AustraliaChinaHong KongIndiaIndonesiaJapanMalaysiaNew ZealandPakistanPhilippinesSingaporeSouth KoreaTaiwanThailandSource: PricewaterhouseCoopers and Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Share <strong>of</strong> Broadband Households in Asia Pacific,2004 & 20101%2%21%27%2004 2010Australia5% 2%ChinaHong Kong7%1%3% 2%India1%1%Indonesia40% JapanMalaysiaNew ZealandPakistan21%PhilippinesSingaporeSouth Korea2%Taiwan1%Thailand2%60%Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008ASIA PACIFIC BROADBAND HOUSEHOLDSChina is the biggest gainer throughout 2010,while Japan and South Korea lose shares.In the Asia Pacific region, China remains thetop country with the most broadbandhouseholds, growing from 24 million in 2004to 130 million households in 2010, whileJapan and South Korea follow behind,PricewaterhouseCoopers has forecast.In terms <strong>of</strong> market share, China is gainingrapidly within six years, from 40 perc<strong>en</strong>t in2004 to a 60 perc<strong>en</strong>t <strong>of</strong> share in 2010. Japanand South Korea, however, used to accountfor 27 perc<strong>en</strong>t and 21 perc<strong>en</strong>t, respectively,in 2004, but both are expected to loseground, to 21 perc<strong>en</strong>t for Japan and justsev<strong>en</strong> perc<strong>en</strong>t for South Korea in 2010.86
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS%80Europe Broadband P<strong>en</strong>etration(as a % <strong>of</strong> households and SOHOs)7060504030201002002 2003 2004 2005 2006e 2007e 2008e 2009e 2010e 2011eSource: Exane BNP Paribas/Arthur D. Little, March 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008EUROPE BROADBAND PENETRATIONBroadband in Europe is expected to reachmore than 70 perc<strong>en</strong>t in 2011, with theNetherlands having the highest p<strong>en</strong>etration.European broadband p<strong>en</strong>etration is growingfrom less than 10 perc<strong>en</strong>t in 2002 to exceed ananticipated 70 perc<strong>en</strong>t in 2011, according tothe estimates from Exane BNP Paribas.Europe Broadband P<strong>en</strong>etration,by Country, Q3 2006GreecePolandIrelandCzech Rep.PortugalGermanyItalySpainAustriaUKBelgiumFranceSwed<strong>en</strong>FinlandNetherlands% 0 10 20 30 40 50 60 70Source: Exane BNP Paribas/Arthur D. Little, March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In the third quarter <strong>of</strong> 2006, the Netherlandswas the one leading in p<strong>en</strong>etration, with morethan 60 perc<strong>en</strong>t. Nordic countries such asFinland and Swed<strong>en</strong> followed, with more than50 perc<strong>en</strong>t and more than 45 perc<strong>en</strong>t,respectively. France, Belgium, and the UnitedKingdom had a broadband p<strong>en</strong>etration <strong>of</strong> morethan 40 perc<strong>en</strong>t, while Poland and Greecelagged behind, with a reach <strong>of</strong> around just 10perc<strong>en</strong>t.U.S. BROADBAND PENETRATIONAND USAGEU.S. broadband continues to surge. Broadbandusers t<strong>en</strong>d to skew male, younger, with higherincome and education.According to the Pew Internet Project, U.S.home broadband p<strong>en</strong>etration, which used to beless than five perc<strong>en</strong>t at the beginning <strong>of</strong> thisc<strong>en</strong>tury, exceeded dial-up by the <strong>en</strong>d <strong>of</strong> 2004,and continued to grow to more than 45 perc<strong>en</strong>tin February 2007.Dial-up p<strong>en</strong>etration was at more than 40perc<strong>en</strong>t in 2000, and has since tak<strong>en</strong> a freefall.By February 2007, dial-up reach was less than15 perc<strong>en</strong>t.Who, th<strong>en</strong>, is using broadband? According toPew, in 2007, nearly half <strong>of</strong> the U.S.population (47 perc<strong>en</strong>t) had broadband accessat home. The user pr<strong>of</strong>ile is more male-skewed– half <strong>of</strong> male respond<strong>en</strong>ts said they havebroadband access at home, while only 44perc<strong>en</strong>t <strong>of</strong> females said so.87
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERU.S. Broadband AdoptionPopulation SubgroupsAll adults AmericansG<strong>en</strong>derM<strong>en</strong>Wom<strong>en</strong>Age18-2930-4950-6465+Race/EthnicityWhite (not Hispanic)Black (not Hispanic)EducationLess than high schoolHigh school gradSome collegeCollege +IncomeUnder $30K$30K–$50K$50K–$75KOver $75KCommunity TypeUrbanSuburbanRuralSource: Pew Internet Project, 2005-2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008% with broadband at home20053031273836278311410203547152735573133182006424538555038134231173147622143486844462520074750446359401548402134587030465876524931There is also a relationship betwe<strong>en</strong> higherbroadband adoption and younger age, highereducation and higher income. Among thoserespond<strong>en</strong>ts under age 49, nearly 60 perc<strong>en</strong>thave broadband access at home, whichresults are similar among people with at leastsome college degree, and with income over$50,000.In terms <strong>of</strong> race, white people are morelikely to have broadband access than blackpeople, with 48 perc<strong>en</strong>t and 40 perc<strong>en</strong>tsaying they have broadband, respectively.Additionally, respond<strong>en</strong>ts living in urbanareas t<strong>en</strong>d to have access at home more thanpeople living in rural areas.From 2005, broadband adoption hascontinued to grow across all subgroups.ONLINE VIDEOU.S. online videoAccording to eMarketer, U.S. online videoviewers have more than doubled, from 52million in 2003 to 135.5 million in 2007. In2011, viewers are expected to reach 183 million,more than three times than those in 2003.According to Pew Internet & American LifeProject Tracking Survey conducted inFebruary and March 2007, online videoaudi<strong>en</strong>ce members accounted for 57 perc<strong>en</strong>t <strong>of</strong>all the online respond<strong>en</strong>ts.%5045Dial-upU.S. Home Broadband & Dial-up P<strong>en</strong>etrationBroadband4035302520151050Jun-00Oct-00Feb-01Jun-01Oct-01Feb-02Jun-02Oct-02Feb-03Jun-03Oct-03Feb-04Jun-04Oct-04Feb-05Jun-05Oct-05Feb-06Jun-06Oct-06Feb-07Source: Pew, “Home Broadband Adoption,” June 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200888
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSMillions200U.S. Online Video Viewers, 2003 – 2011180160140120100114.3135.5155.2168.5176.0183.08090.260402052.069.602003 2004 2005 2006 2007 2008 2009 2010 2011Source: eMarketer, February 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008U.S. Online Video Audi<strong>en</strong>ceThe perc<strong>en</strong>tage <strong>of</strong> online users in each groupwho watch or download online videoTotalM<strong>en</strong>Wom<strong>en</strong>Ages 18-29Ages 30-49Ages 50-64Ages 65+High School Grad or lessSome collegeCollege GradUnder $30K$30K–$50K$50K–$75KOver $75K5763517657463946626452636362Source: Pew Internet & American Life Project Tracking Survey,February – March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008The study also indicates the online video usageskewed to users who were male, younger, orhave higher education and higher income.Sixty-three perc<strong>en</strong>t <strong>of</strong> male respond<strong>en</strong>ts useonline video, compared with 51 perc<strong>en</strong>t <strong>of</strong>females. Among people under age 29, nearly80 perc<strong>en</strong>t use online video. Fifty-sev<strong>en</strong>perc<strong>en</strong>t <strong>of</strong> those betwe<strong>en</strong> 30 to 49 do so,compared with less than half <strong>of</strong> those aboveage 50.In terms <strong>of</strong> education, more than 60 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts who got at least some collegedegree are members <strong>of</strong> the online videoPr<strong>of</strong>ile <strong>of</strong> U.S. Online VideoViewers, 2007G<strong>en</strong>derM<strong>en</strong>Wom<strong>en</strong>AgeMeanIncomeMeanOver $75KTotal50%50%39 years$59K27%HeavyViewers64%36%37 years$61K29%ModerateViewers41%59%39 years$58K25%LightViewers35%65%43 years$58K26%Base: 1,422 U.S. online video usersNote: Heavy = weekly +Moderate = monthly but less than weeklyLignt = less than monthlySource: Online Publishers <strong>Association</strong> and OTX, “Frames<strong>of</strong> Refer<strong>en</strong>ce: Online Video Advertising, Cont<strong>en</strong>t and ConsumerBehaviour”, June 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008audi<strong>en</strong>ce, while only 46 perc<strong>en</strong>t <strong>of</strong> those withhigh school degrees or less do so.Among people with a household income <strong>of</strong>less than $30,000, only 52 perc<strong>en</strong>t use onlinevideo, while more than 60 perc<strong>en</strong>t <strong>of</strong> thosewith income over $30,000 do so.According to the study “Frames <strong>of</strong> Refer<strong>en</strong>ce:Online Video Advertising, Cont<strong>en</strong>t andConsumer Behaviour,” by the OnlinePublishers <strong>Association</strong> and OTX, the findingsare similar; the heavy user pr<strong>of</strong>ile t<strong>en</strong>ds to bemale-skewed, younger and with a higherincome.The study also stated that an average U.S.89
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERonline video viewer is likely to be around 39years old, with about $59,000 in annualhousehold income.According to OPA, 44 perc<strong>en</strong>t <strong>of</strong> U.S. onlinevideo viewers who responded use it at leaston a weekly basis, while 19 perc<strong>en</strong>t use itseveral times a month, and another nineperc<strong>en</strong>t and 27 perc<strong>en</strong>t use it once a month orev<strong>en</strong> less, respectively.Eight perc<strong>en</strong>t <strong>of</strong> the total users are heavyviewers, and use it on a daily basis.Meanwhile, 24 perc<strong>en</strong>t use it several times aweek, while 12 perc<strong>en</strong>t use it once a week.%302520151050Frequ<strong>en</strong>cy <strong>of</strong> Online VideoViewing, U.S., 20078Daily44%24SeveralTimesa Week12OnceaWeekBase: 1,422 U.S. online video usersSource: Online Publishers <strong>Association</strong> and OTX, “Frames <strong>of</strong>Refer<strong>en</strong>ce: Online Video Advertising, Cont<strong>en</strong>t and ConsumerBehaviour,” June 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200819SeveralTimesa Month9OnceaMonthor More27Lessthanonce aMonthIn terms <strong>of</strong> the most popular online videocategories in the United States, news andcomedy take the top two spots, with morethan 30 perc<strong>en</strong>t <strong>of</strong> online video viewershaving ever watched them, according to PewInternet & American Life Project TrackingSurvey.Educational videos and music are also quitepopular, with more than 20 perc<strong>en</strong>t havingwatched those categories in the past.NewsMusicSportsPoliticalAdultOtherU.S. Popular Online VideoCategoriesPerc<strong>en</strong>tage <strong>of</strong> online video viewerswho view each categoryComedyMovies or TVCommercialsAnimationEducationalYes to any3710317163Ever22 Yesterday4143132152193223616257190 10 20 30 40 50 60Source: Pew Internet & American Life Project Tracking Survey,February – March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008YouTubeNews Web sitesCable or network TV sitesYahoo!MySpaceGoogle VideoAOL VideoMSN VideoiTunesOtherDon’t know / RefusedU.S. Popular Online Video SitesPerc<strong>en</strong>tage <strong>of</strong> online video viewers who use each site492761279Video Viewers 18-29 All Video Viewers89156106351412202114220 10 20 30 40 50 60Source: Pew Internet & American Life Project, July 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200890
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSFrequ<strong>en</strong>cy <strong>of</strong> Online Video Viewing vs. Online Video Reach, U.S., 2007%10090Movie Clips/TrailersJokes/Funny ClipsNews/Curr<strong>en</strong>tEv<strong>en</strong>tsOnline Video Reach8070605040TravelHow-toVideosFull-l<strong>en</strong>ghMoviesTV ShowsMusic VideosSportsHighlightsBusiness/Financial NewsEntertainem<strong>en</strong>tNews/MovieReviewsWeather300 1 2 3 4 5 6 7 8 9Frequ<strong>en</strong>cy <strong>of</strong> Watching Online Videos (Monthly Average)10Base: 1,422 U.S. online video usersSource: Online Publishers <strong>Association</strong> and OTX, “Frames <strong>of</strong> Refer<strong>en</strong>ce: Online Video Advertising, Cont<strong>en</strong>t and Consumer Behaviour,” June 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Only 19 perc<strong>en</strong>t said they watched onlinevideos yesterday, which indicates that most <strong>of</strong>the population uses it from time to time, ratherthan as a regular daily activity.In terms <strong>of</strong> the most popular online video sites,YouTube is ranked on the top, with 27 perc<strong>en</strong>t<strong>of</strong> online video viewers using it. For thoseaged 18 to 29, the score is ev<strong>en</strong> higher, with 49perc<strong>en</strong>t.News Web sites ranked second by all viewers –12 perc<strong>en</strong>t said they have ever used them, butthey are relatively less popular among youngerg<strong>en</strong>erations.Young people betwe<strong>en</strong> age 18 and 29, however,ranked MySpace and Google video as theirsecond and third favourites, with 15 perc<strong>en</strong>tand 10 perc<strong>en</strong>t choosing them, respectively.OPA also maps out online video categories interms <strong>of</strong> frequ<strong>en</strong>cy and reach. News/curr<strong>en</strong>tev<strong>en</strong>ts, and jokes/funny clips are the top twoonline video categories with highest reach andfrequ<strong>en</strong>cy, both reaching more than 80 perc<strong>en</strong>t<strong>of</strong> people, and are viewed more than sev<strong>en</strong>times per month. Travel and full-l<strong>en</strong>gthmovies, however, are the ones with lowestreach and viewed least frequ<strong>en</strong>tly, with lessthan 50 perc<strong>en</strong>t reach and viewed less thanthree times.SOCIAL NETWORKING/USER-GENERATEDCONTENTAccording to the study “The <strong>en</strong>d <strong>of</strong> advertisingas we know it,” by the U.S.-based IBMInstitute for Business Value, about 45 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts in U.S. visit social networking sites,while nearly 35 perc<strong>en</strong>t <strong>of</strong> those in Australiaand the United Kingdom doing so. In Germanyand Japan, the reach is ev<strong>en</strong> lower, with about25 perc<strong>en</strong>t and 10 perc<strong>en</strong>t, respectively.% <strong>of</strong> Respond<strong>en</strong>ts Who Visit/Contribute to Social Networkingor User-g<strong>en</strong>erated Cont<strong>en</strong>t Sitesin Five Countries%50454035302520151050United StatesAustraliaGermanySocial networkingJapanUnited KingdomContributeUGC siteBase: 2,400 consumers in 5 countriesSource: IIBM 2007 Digital Consumer Study, “The <strong>en</strong>d <strong>of</strong> advertisingas we know it,” 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200891
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERIn terms <strong>of</strong> those who actually contribute tosocial networking sites, Australians take thelead with about 30 perc<strong>en</strong>t, while the UnitedStates and the United Kingdom followedbehind with 25 perc<strong>en</strong>t and about 20 perc<strong>en</strong>t,respectively. Germany and Japan still lagbehind with less than 15 perc<strong>en</strong>t.Regarding the sites with user-g<strong>en</strong>erated cont<strong>en</strong>t,more than 35 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts in Japan,Germany and the United Kingdom have evervisited them. In Australia and the United States,only about 30 perc<strong>en</strong>t visit the sites.The perc<strong>en</strong>tage <strong>of</strong> respond<strong>en</strong>ts who contributeto user-g<strong>en</strong>erated cont<strong>en</strong>t sites is globallylow – all at less than 10 perc<strong>en</strong>t in the fivesurveyed countries.U.S. ONLINE CONSUMER CLASSIFICATIONThe majority are still inactive and un<strong>en</strong>gaged.U.S. Online ConsumerClassification13%19%15%19%33%52%CreatorsPublish Web <strong>page</strong>sPublish or maintain a blogUpload video to sites like YouTubeCriticsComm<strong>en</strong>t on blogsPostrating and reviewsCollectorsUse RSSTag Web <strong>page</strong>sJoinersUse social networking sitesSpectatorsRead blogsWatch peer-g<strong>en</strong>erated videoList<strong>en</strong> to podcastsInactivesNone <strong>of</strong> these activitiesSource: Social Technographics: Mapping Participation in ActivitiesForms the Foundation <strong>of</strong> a Social Strategy, Forrester Research,Q4 2006© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to the study “SocialTechnographics: Mapping Participation inActivities Forms the Foundation <strong>of</strong> a SocialStrategy,” by Forrester Research, U.S. onlineconsumers can be divided by six groups –creators, critics, collectors, joiners, spectators,and inactives, ranked by the involvem<strong>en</strong>t <strong>of</strong>online usage from high to low.Creators, which accounted for 13 perc<strong>en</strong>t,publish or maintain Web <strong>page</strong>s or blogs, andupload video on a sharing site such asYouTube at least on a monthly basis. Critics,which made up 19 perc<strong>en</strong>t, comm<strong>en</strong>t on blogsor post ratings and reviews online.Collectors, which accounted for 15 perc<strong>en</strong>t,however, do not release their own comm<strong>en</strong>tsbut collect the information online, usingRSS, or by tagging Web sites.Joiners, repres<strong>en</strong>ting another 19 perc<strong>en</strong>t, usesocial networking sites, but are not reallyactively involved.The two most inactive are spectators andinactives, which accounted for the majority<strong>of</strong> consumers – 33 perc<strong>en</strong>t, and 52 perc<strong>en</strong>t,respectively. Spectators simply read blogs,watch peer-to-peer videos or list<strong>en</strong> topodcasts, while inactives do nothingm<strong>en</strong>tioned above at all.WORLD’S MOST POPULAR SITES<strong>World</strong>’s Most Popular SitesGlobal Social Network Site, IM Services,Video-sharing SitesMost PopularGlobal Social Networking SiteMySpaceWindows Live SpaceFacebookYahoo! 360°OrkutLive JournalCyworldFri<strong>en</strong>ds ReunitedClassmates.comHi5Most PopularIM ServicesMSN Instant MessagingYahoo! Mess<strong>en</strong>gerSkypeGoogle TalkICQAOL Instant MessagingAIMQQPaltalkJabberMost PopularVideo Sharing SiteYouTubeGoogle VideoYahoo! VideoMySpace VideosMSN SoapboxDaily MotioniFilmYoupornGodtubeAdultubeRank010203040506070809100102030405060708091001020304050607080910Source: Nokia Nseries, “A Glimpse <strong>of</strong> the Next Episode,” Dec. 2007© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-200892
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSSOCIAL NETWORKING SITESAccording to Nokia’s study, “A Glimpse <strong>of</strong> theNext Episode,” MySpace was ranked on thetop as the most popular social networking site,while Windows Live Space and Facebookfollowed in the second and third spots.IM SERVICESIn terms <strong>of</strong> IM services, MSN InstantMessaging is the top one, while Yahoo!Mess<strong>en</strong>ger and Skype followed behind. Therelatively new player Google Talk is in fourthplace, while ICQ, which was hot in thebeginning <strong>of</strong> the mill<strong>en</strong>nium, is in the top five.VIDEO-SHARING SITESThe video-sharing market is almost completelydominated by Google. The top two areYouTube and Google Video, both owned byGoogle. Yahoo! Video is third and MySpaceVideos is fourth. Micros<strong>of</strong>t’s MSN Soapbox,however, was ranked in the sixth spot.Mobile Usage and User pr<strong>of</strong>ileGlobal Mobile PhoneSubscribers & P<strong>en</strong>etration Rate,2007 vs. 2012Global mobile phone subscribersP<strong>en</strong>etration rateCAGR (2007-2012)Source: Market Intellig<strong>en</strong>ce C<strong>en</strong>ter© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008According to a forecast by the MarketIntellig<strong>en</strong>ce C<strong>en</strong>ter, global mobile phonesubscribers reached 3.1 billion in 2007, andare expected to exceed 4.5 billion by 2012.The compound annual growth rate for the fiveyears is expected to be about 7.9 perc<strong>en</strong>t.In 2007, mobile phone subscriptionp<strong>en</strong>etration was at about 46.8 perc<strong>en</strong>t globally.It is expected to rise to 64.7 perc<strong>en</strong>t in 2012.GLOBAL MOBILE USAGE2007 20123.1 billion 4.5 billion46.8% 64.7%7.9%According to consulting and research firmIDATE, the mobile customer base worldwidehas grown from 945 million in 2001 to 2.6billion in 2006. In 2001, more than 60 perc<strong>en</strong>t,or 576 million, came from industrialisedcountries, while 369 million were fromdeveloping countries. In 2006, however,customer bases in developing countries havesurpassed those in industrialised countries,with 1.7 billion, or 66 perc<strong>en</strong>t, versus the 886million in industrialised countries.Global Mobile Customers& Mobile D<strong>en</strong>sity,Industrialised Countries vs.Developing Countries, 2001 – 2006Industrialised countriesMobile customersMobile d<strong>en</strong>sity (%)Source: Mobile 2007, IDATE© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Developing countriesMobile customersMobile d<strong>en</strong>sity (%)million2,00091.81,80085.5171678.21,60071.61,40060.965.813201,2001,000955886821800748600 57662568270532.152125.0400 36918.313.77.410.320002001 2002 2003 2004 2005 2006%100In terms <strong>of</strong> p<strong>en</strong>etration, or the number <strong>of</strong>customers/lines per 100 inhabitants, in 2001,the rate in industrialised countries was already60.9 perc<strong>en</strong>t, while in developing countries itwas merely 7.4 perc<strong>en</strong>t. In 2006, the rate inindustrialised countries reached 91.8 perc<strong>en</strong>t,which is almost saturated, while in developingcountries, the rate grew to 32.1 perc<strong>en</strong>t, stillhaving much room to grow.Wh<strong>en</strong> brok<strong>en</strong> down by region, Western Europeand advanced Asian economies in 2002 hadthe highest mobile d<strong>en</strong>sity, with 79 perc<strong>en</strong>t and68 perc<strong>en</strong>t p<strong>en</strong>etration, respectively. EasternEurope and North America followed behind,both with mobile reach <strong>of</strong> about 50 perc<strong>en</strong>t.In 2006, reach in Western Europe increased to109 perc<strong>en</strong>t, while in Eastern Europep<strong>en</strong>etration jumped nearly two-fold, from 53perc<strong>en</strong>t in 2002 to 101 perc<strong>en</strong>t in 2006. Inadvanced economic countries in Asia and inNorth America the mobile d<strong>en</strong>sity reached 84perc<strong>en</strong>t and 76 perc<strong>en</strong>t, respectively. Indeveloping Asian economies and Sub-SaharanAfrica, the reach was still less than 30 perc<strong>en</strong>tin 2006.908070605040302010093
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER120100109Mobile D<strong>en</strong>sity, by Region, 2002 vs. 2006(number <strong>of</strong> mobile customers per 100 inhabitants)1012002 200680604020079WesternEurope53EasternEurope6884AdvancedAsianeconomics4876NorthAmericaSource: Mobile 2007, IDATE © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20081953LatinAmerica3810 925Middle East& North Africa DevelopingAsianeconomics418Sub-SaharanAfricaLEADING MOBILE MARKETS, 2006Developing countries reported significantgrowth, while China and the United States arethe two biggest markets.According to IDATE, China and the UnitedStates are undoubtedly the top two leadingmobile markets in terms <strong>of</strong> customer basesfrom 2002 to 2006. China’s customer basereached 450 million in 2006, positioning thecountry as a market leader beginning in 2002,growing by about 50 million or more per year.In the United States, the customer base was atabout 150 million in 2002, and grew to nearly250 million in 2006.Russia and India followed behind as the thirdand fourth mobile markets in 2006. However,both <strong>of</strong> the markets were niche in 2002, eachwith less than 25 million customers that year.By 2006, both have boosted their numbers,each reaching a base <strong>of</strong> about 150 million.An interesting finding is that in someadvanced mobile countries, such as Japan,Germany, and the United Kingdom, themarkets seem more saturated, with nosignificant growth reported since 2002.Besides Russia and India, some otherdeveloping countries, such as Indonesia andPakistan, have also marked a glamorousgrowth since 2002.ChinaUSARussiaIndiaJapanBrazilGermanyItalyUKIndonesiaTurkeyFranceSpainMexicoPakistanLeading Mobile Markets, End <strong>of</strong> 2006(number <strong>of</strong> customers in millions)2002Net adds in 2003Net adds in 2004Net adds in 2005Net adds in 20060 50 100 150 200 250 300 350 400 450Source: Mobile 2007, IDATE © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200894
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS(in thousands)D<strong>en</strong>markFinlandFranceGermanyItalyNorwaySpainSwed<strong>en</strong>SwitzerlandUKOther Western Europe**Western Europe subtotalEastern EuropeTotal EuropeMobile Phone Subscribers in Europe, 2005 – 201020055,4615,21346,70479,20069,0324,99041,45410,1016,80565,792101,084435,836267,627703,46220065,7615,36948,10584,58672,2085,09044,12610,4557,09167,964106,946457,700326,504784,20520075,9925,47649,30888,39274,1575,16645,80310,7897,30469,459111,224473,070368,950842,02020086,1905,58250,54191,04476,1595,23347,08611,0917,45770,709114,895485,986394,777880,76220096,3445,68251,65393,04777,3025,30148,02711,3697,56171,770117,767495,823410,568906,39020106,4715,77352,68694,72278,4615,35448,74811,5967,63772,631120,240504,319418,779923,098CAGR*3.5%2.1%2.4%3.6%2.6%1.4%3.3%2.8%2.3%2.0%3.5%3.0%9.4%5.6%* Compound annual growth rate; ** Includes TurkeySource: European Information Technology Observatory (EITO), March 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008MOBILE PHONE SUBSCRIBERSIN EUROPEAccording to the European InformationTechnology Observatory, total mobilesubscribers in Europe reached 703 million in2005, with nearly 60 perc<strong>en</strong>t from WesternEurope, and the rest from Eastern Europe.This figure is expected to grow to 923million in 2010, with an annual growth rate<strong>of</strong> 5.6 perc<strong>en</strong>t. The CAGR in Eastern Europeis more than three times that in WesternEurope, with 9.4 perc<strong>en</strong>t versus threeperc<strong>en</strong>t, respectively.Among all the Western European countries,Germany leads in the number <strong>of</strong> subscribers,which is expected to grow from 79 million in2005 to 94.7 million in 2010. Italy and theUnited Kingdom follow, with anticipatedgrowth <strong>of</strong> 69 million to 78.5 million and 65.8million to 72.6 million, respectively. Franceand Spain are ranked in the fourth and thefifth places.MOBILE SUBSCRIPTIONS IN THE ASIAPACIFIC REGIONMobile subscriptions in the Asia Pacific regionincreased from less than 600 million in 2003 tomore than 1.3 billion in 2007, according toInforma Telecoms & Media.In 2003, half <strong>of</strong> the market was dominated byChina, while India only accounted for a nicheamount. Other countries, including mobileadvancedJapan and South Korea, made upanother half.Asia Pacific Mobile Subscriptions2003 – 2007million1,4001,2001,0008006004002000PakistanIndiaOthersChina2003 2004 2005 2006 2007Source: Informa Telecoms & Media© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2007, China alone made up 600 million –nearly half the total – while others accountedfor about 500 million. The subscriptions in Indiaand Pakistan, however, have grown quicklysince 2003 and totalled about 200 million.3G MOBILE PHONE CUSTOMER BASEThe Asia Pacific region contributed half, whileWestern Europe brought in another 36 perc<strong>en</strong>t.According to IDATE, in June 2006, half <strong>of</strong> theglobal 3G customers came from the AsiaPacific region. Western Europe, in the secondspot, contributed 36 perc<strong>en</strong>t, while NorthAmerica brought in another 11 perc<strong>en</strong>t.Eastern Europe, Africa and the Middle Eastaccounted for a very small niche, only threeperc<strong>en</strong>t.95
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER3G Customer Base by Region,June 2006Eastern Europe2%North America11%Africa & Middle East1%AsiaPacific50%Western Europe36%Source: Mobile 2007, IDATE© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20083G MOBILE PHONE SALES/SUBSCRIBERSIN EUROPE3G Mobile Phone Salesand Subscribers in Europe,2006 – 2010Thousands %200,000180,0009080160,00070140,00060120,00050100,0004080,00060,0003040,0002020,00010002006 2007 2008 2009 20103G mobile phone sales3G subscribers% <strong>of</strong> total broadband-<strong>en</strong>bled mobile phone sales% <strong>of</strong> total mobile broadband subscribersSource: Exane BNP Paribas and Arthur D. Little,“Telecom Operators: Caution – Work Ahead” , March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to the data from Exane BNPParibas, 3G mobile phone sales in Europegrows from about 30 millions in 2006 to 140millions in 2010. The 3G subscribers, totalledabout 50 millions in 2006, will reach about170 million in 2010.In terms <strong>of</strong> the 3G reach <strong>of</strong> total broadband<strong>en</strong>abledmobile phone sales, the rate increasedfrom about 20 perc<strong>en</strong>t in 2006, and is expectedto exceed 80 perc<strong>en</strong>t in 2010. On the otherhand, the 3G reach <strong>of</strong> total mobile broadbandsubscribers was less than 20 perc<strong>en</strong>t in 2006,but is expected to rise to nearly 40 perc<strong>en</strong>t in2010.MOBILE INTERNET IN FIVE WESTERNEUROPEAN COUNTRIESMobile Internet/search base and ad rev<strong>en</strong>ue ison the rise, but device utilisation is stillrelatively low.Mobile Internet Usersvs. Mobile Search Users,and Mobile Search Ad Rev<strong>en</strong>uesin Western Europe,*2006 – 2011Million12010080604020Mobile Internet usersMobile search usersMobile search ad rev<strong>en</strong>ues**US$ million600500400300200100002006 2007 2008 2009 2010 2011* UK, France, Germany, Italy, Spain. ** Earned from sale or display ortext listings alongside mobile search results.Source: eMarketer, July 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2006, there were more than 40 millionInternet users and more than 30 million mobilesearch users in the United Kingdom, France,Germany, Italy and Spain, according toeMarketer. In 2011, both customer bases in thefive Western European countries are expectedto rise, with Internet users exceeding 100million and mobile search users at more than90 million.Mobile search ad rev<strong>en</strong>ues were at almostnothing in 2006, but have grown rapidly andare forecast to reach US$500 million 2011.According to the report “Telecom-study 2007”by Exane BNP Paribas, in the UnitedKingdom, France, Italy, Germany and Spain,mobile Internet devices are not fully utilised,as 80 perc<strong>en</strong>t <strong>of</strong> people who have mobileonline access don’t use it.Mobile Internet usage is highest in the UnitedKingdom, as more than 20 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts with access use it at least once a96
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSMobile Internet Usage among 5 EU CountriesHow <strong>of</strong>t<strong>en</strong> do you browse the mobile Internet?I have access but I never use itAt least several times a monthLess than once a monthAt least several times per weekAbout once a monthEU-5UKFranceItalyGermanySpain% 020 40 60 80 100Source: Exane BNP Paribas and Arthur D. Little, “Telecom Operators: Caution – Work Ahead,” March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008month, while about 65 perc<strong>en</strong>t never use it.France and Italy have the second and the thirdhighest usage, while in Spain, usage is thelowest – more than 90 perc<strong>en</strong>t have mobileInternet access but never use it.U.S. MOBILE INTERNET/SEARCHAccording to estimates from comScore andTKG, U.S. mobile Web users totalled 37.9million in 2007, and will grow at an annualrate <strong>of</strong> 19 perc<strong>en</strong>t, reaching 91.7 million in2012.According to iCrossing’s study “How AmericaSearches: Mobile,” U.S. mobile Internet usageMobile Internet Users, U.S.,2007-2012Thousands10091,66190 CAGR 19%82,3418073,0017063,56360 54,514504037,89130201002007 2008 2009 2010 2011 2012Source: comScore, TKG estimates (2007)© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008%9080YesU.S. Mobile Internet Usage, by Age, Income and G<strong>en</strong>derDo you access the Internet on your mobile device?No70605040302010016-19 20-29 30-39 40-49 50+ $35-50K $50-75K $75K+ Male FemaleBase: U.S. mobile users age 16+ © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: iCrossing, “How America Searches: Mobile”, April 200797
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERU.S. Mobile Searches:Activity Among Mobile Users and Mobile Internet UsersDo you search the Internet on your mobile device?All Mobile UsersMobile Users who Access the InternetYesNo78% 22%25% 75%Base: U.S. mobile users age 16+ / U.S mobile Internet user 16+ © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: iCrossing, “How America Searches: Mobile,” April 2007%80Type <strong>of</strong> Cont<strong>en</strong>t Searched on Mobile Internet7060696562504051453032201020 200Maps /DirectionsWeatherLocalInformationNews Entertainm<strong>en</strong>t Sports Finance OtherBase: U.S. mobile search users age 16+ © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: iCrossing, “How America Searches: Mobile,” April 2007skewed to a male, younger demographic with ahigher income.More than 30 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts under age39 access the Internet on their mobiles,especially those ages 20 to 29, with more than40 perc<strong>en</strong>t doing so. Of respond<strong>en</strong>ts over age50, less than 20 perc<strong>en</strong>t have online access ontheir mobiles.For those with a household income <strong>of</strong> morethan US$75,000, more than three out <strong>of</strong> 10have mobile Internet access, while those withlower incomes have less access. Among malerespond<strong>en</strong>ts, nearly 35 perc<strong>en</strong>t have mobileonline access, while less than 30 perc<strong>en</strong>t <strong>of</strong>females said they did.98
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSMOBILE SEARCH IN THE UNITED STATESAccording to iCrossing, only 22 perc<strong>en</strong>t <strong>of</strong>U.S. mobile users responding utilise the onlinesearch on their mobile devices. Ev<strong>en</strong> amongthose who have mobile online access, still oneout <strong>of</strong> four does not use the online search, anindication that mobile online devices are notfully-utilised.MOST POPULAR CONTENT SEARCHED ONMOBILE INTERNETAccording to iCrossing’s study “How AmericaSearches: Mobile,” the most popular mobileonline cont<strong>en</strong>t in the United States aremaps/direction, weather and local information,which more than 60 perc<strong>en</strong>t <strong>of</strong> usersresponding search for. News and <strong>en</strong>tertainm<strong>en</strong>tare fairly popular, with 51 perc<strong>en</strong>t and 45perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts saying they search forthem, respectively. Sports, finance and othersare the least popular. This indicates that mobileonline users are most likely to search forregularly updated geographically specificinformation, such as road conditions or movielistings, while cont<strong>en</strong>t about serious newsissues financial information or sports news ar<strong>en</strong>ot that popular.MOST POPULAR MOBILE SEARCH ENGINESU.S. Mobile Search EnginePrefer<strong>en</strong>cesWhich mobile search <strong>en</strong>gines do you use?%1009080706050403020100Google Yahoo! MSN OthersBase: U.S. mobile search users age 16+Source: iCrossing, “How America Searches: Mobile,” April 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Google dominates not only online search, butalso the mobile online search market in theUnited States – nearly 90 perc<strong>en</strong>t <strong>of</strong> U.S.mobile search users use it. Yahoo! is thesecond most popular, but lags behind with lessthan 50 perc<strong>en</strong>t who use it. MSN is used farless, while only less than 20 perc<strong>en</strong>t use it formobile search.MOBILE SEARCH IN THE UNITEDKINGDOMUK Adult Internet Users WhoSearch Online via Mobile Device,by Age and Frequ<strong>en</strong>cy,March-April, 2007%10080604020047 51 66 82 93 7113 1121 722716 42 1219 16 1110 3104 216-24 25-34 35-44 45-54 55+ TotalNever Only Once Lessfrequ<strong>en</strong>tly** Includes responses <strong>of</strong> “about once a fortnight,” “about once amonth” and “less than once a month.”Source: Harris Interactive, May 17, 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008According to research firm Harris Interactive,among all the adult online users in the UnitedKingdom, those who use mobile search onlineare still the minority. More than 70 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts have never used mobile search,while only one out <strong>of</strong> 10 use it on a weeklybasis.Mobile search usage is in proportion to age.Half <strong>of</strong> the respond<strong>en</strong>ts under age 34 haveused it at least once, while more than 80perc<strong>en</strong>t <strong>of</strong> those above age <strong>of</strong> 45 have nevertried it.Among respond<strong>en</strong>ts betwe<strong>en</strong> ages 16 and 24,nearly 20 perc<strong>en</strong>t use mobile search at leastonce a week, while 16 perc<strong>en</strong>t <strong>of</strong> peoplebetwe<strong>en</strong> ages 25 and 34 do so, and 11 perc<strong>en</strong>t<strong>of</strong> those betwe<strong>en</strong> 35 and 44 do so. However,for people above age 45, only less than fiveperc<strong>en</strong>t do so.UK MOBILE INSTANT MESSAGINGAt least oncea weekAccording to Capgemini, mobile instantmessaging users in the United Kingdom willskyrocket from two million in 2006 to 32million in 2012. In terms <strong>of</strong> the perc<strong>en</strong>tage <strong>of</strong>active users, the number is expected toincrease from 0.8 perc<strong>en</strong>t in 2006 to more than16 perc<strong>en</strong>t in 2012.99
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERMobile Instant Messaging (IM)Users in the UK, 2006 – 2012Million %18Mobile IM users16.2 351614% <strong>of</strong> active users3230122510.010208206,21564.1 121041.92.682 0.854 50 202006 2007 2008 2009 2010 2011 2012Source: Capgemini, “Mobile Instant Messaging: Cannibal or CashCow?” May 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In 2007, messaging still repres<strong>en</strong>ted thebiggest chunk, up four perc<strong>en</strong>t to 37 perc<strong>en</strong>t.Multimedia, up two perc<strong>en</strong>t to 16 perc<strong>en</strong>t,replaced voice in the second spot. Time sp<strong>en</strong>ton PIM still remained at 14 perc<strong>en</strong>t, whiletime sp<strong>en</strong>t on voice dropped eight perc<strong>en</strong>t to12 perc<strong>en</strong>t, moving it down to fourth placeoverall. Additionally, as people s<strong>en</strong>t more timebrowsing on mobile phones, up from sixperc<strong>en</strong>t to eight perc<strong>en</strong>t in 2007, time sp<strong>en</strong>t ongames decreased to four perc<strong>en</strong>t.Moreover, monthly data traffic per user alsospiked. In 2006, a user consumed an average<strong>of</strong> six MB <strong>of</strong> data in a month, two-thirds <strong>of</strong>which were platform applications and add-onapplications.MOBILE USER BEHAVIOUR/MOBILECONSUMPTIONAccording to the Nokia Smartphone 360 panelconducted in the United Kingdom, France andGermany in spring 2007, mobile users sp<strong>en</strong>tmore time on their mobile devices than theyear before, from 30 minutes a day in 2006 to48 minutes in 2007, up 60 perc<strong>en</strong>t in a year.In 2006, mobile users sp<strong>en</strong>t most their time onmessaging and voice, which accounted for 32perc<strong>en</strong>t and 20 perc<strong>en</strong>t <strong>of</strong> the total time usingmobiles, respectively. Multimedia and personalinformation manager s<strong>of</strong>tware, such as apersonal organiser (PIM) also made up 14perc<strong>en</strong>t each. Games and browsing were eachless than 10 perc<strong>en</strong>t.Mobile ConsumptionIs Growing RapidlyAveraged MB/User/Month16Add-on applications14Platform applications121086420242006 panel 2007 panelSource: Nokia Smartphone 360 panel© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200859Mobile User Behaviour Is Changing Rapidly14%2007 panelDaily time allocation (48 min/day)4%1%4%12%8%4%37%BrowsingGamesMassagingMultimediaPIMProductivityUnknownUtilityVoice1%2%2006 panelDaily time allocation (30 min/day)4%14%20%6%7%32%16%Source: Nokia Smartphone 360 panel © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200814%100
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSIn 2007, the data consumed more thandoubled, to 14 MB per user in a month,including nine MB <strong>of</strong> platform applicationsand five MB <strong>of</strong> add-on applications.MOBILE CONSUMPTION OF CONTENT ANDAPPLICATIONSReceiving SMS ads and s<strong>en</strong>ding/receivingphotos/videos are the most popular activities;watching mobile video and accessing socialnetworks are still niche across countries.According to M:Metrics’ data gathered inDecember 2007, receiving SMS ads ands<strong>en</strong>ding/receiving photos or videos are themost popular consumption <strong>of</strong> cont<strong>en</strong>t andapplications in the sev<strong>en</strong> countries surveyed –the United States, France, Germany, Italy,Spain, the United Kingdom and China.SMS ads were especially popular in Spain,France and Italy – more than 50 perc<strong>en</strong>t <strong>of</strong> therespond<strong>en</strong>ts said they received ads inDecember 2007. In Europe, the reach wasabout 50 perc<strong>en</strong>t.S<strong>en</strong>ding/receiving photos or videos was alsopopular; more than 20 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>tsin most countries did so, especially in Italy,Spain and the United Kingdom, where thefigure was more than 30 perc<strong>en</strong>t. In China,however, only less than 20 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts did so.List<strong>en</strong>ing to music was most popular in Chinaand Spain, with nearly 35 perc<strong>en</strong>t and 20perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts doing so. In the UnitedStates, however, only six perc<strong>en</strong>t list<strong>en</strong>ed tomusic on mobile phones.The United States and the United Kingdom,however, perform better in the online mobilesector – 13 perc<strong>en</strong>t <strong>of</strong> U.S. users and nearly 16perc<strong>en</strong>t <strong>of</strong> UK users accessed news/info viabrowsers, while nearly 12 perc<strong>en</strong>t <strong>of</strong> U.S.users and 10 perc<strong>en</strong>t <strong>of</strong> UK users accessed e-mail on their mobiles. In Italy, there were alsomore than 10 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts using e-mails on mobile phones.Watching video and accessing socialnetworking sites were still niche. Less thaneight perc<strong>en</strong>t and five perc<strong>en</strong>t in the countriessurveyed did so, respectively.Purchasing ringtones was most popular in theUnited States, with nearly 10 perc<strong>en</strong>t, while inall other countries the rates were below fiveperc<strong>en</strong>t.MOBILE MUSIC USAGEMobile music p<strong>en</strong>etrated less than one out<strong>of</strong> five, and mostly are transferred from acomputer.According to research firm M:Metrics, inNovember 2007, mobile music was still notvery popular in the surveyed five Europeancountries and the United States, reaching lessthan 20 perc<strong>en</strong>t <strong>of</strong> people.Spain is the country with the highest reach –20 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts said they list<strong>en</strong> tomusic on their mobile phone. The UnitedKingdom and Germany followed, with 18.9Mobile Subscriber Consumption <strong>of</strong> Cont<strong>en</strong>t and Applications,Dec. 2007% <strong>of</strong> all mobile subscribers180Watched video160140List<strong>en</strong>ed to musicAccessed news/info via browserReceived SMS ads120100806040Played downloaded gameAccessed downloaded applicationS<strong>en</strong>t/received photos or videosPurchased ringtonesUsed e-mailAccessed social networking sites200U.S. EU France Germany Italy Spain UK ChinaSource: M:Metrics B<strong>en</strong>chmark Survey © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008101
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER% <strong>of</strong> all mobilemusic list<strong>en</strong>ers100908070605040302010085.8Source <strong>of</strong> Mobile Music in 6 Countries,Nov. 2007Transferred from PC Direct to phone – downloaded from music serviceDirect to phone – transferred from fri<strong>en</strong>s/family Direct to phone – other88.7 86.9 87.318.312.512.58.3 8.8 8.8 7.6 2.9 9.87.18.6 10.08.1 3.74.7 4.3 7.0 6.4France Germany Italy Spain UK U.S.Source: M:Metrics, Inc. © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200883.675.2%2520151050Mobile Music Reachin 6 Countries,Nov. 2007List<strong>en</strong> to music on mobile phone12.915.013.3Source: M:Metrics, Inc.© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008perc<strong>en</strong>t and 15 perc<strong>en</strong>t p<strong>en</strong>etration,respectively. In the United States, the reach isvery low, with only 5.7 perc<strong>en</strong>t.According to M:Metrics, most <strong>of</strong> the mobilemusic in the six countries surveyed weretransferred from a personal computer,accounting for more than 75 perc<strong>en</strong>t. Directdownloading from music services are still notvery popular – the highest is in the UnitedStates, with 18.3 perc<strong>en</strong>t.MOBILE GAME USAGE20.018.9The United Kingdom and Spain consumemobile games most, France the least.5.7France Germany Italy Spain UK U.S.According to M:Metrics, mobile games in fiveEuropean countries and the United States arestill premature. The p<strong>en</strong>etration was less than30 perc<strong>en</strong>t in all the countries in December2007. The highest was in the United Kingdomand Spain, which was more than 28 perc<strong>en</strong>t,while in France it had just a 14 perc<strong>en</strong>t reach.Among several kinds <strong>of</strong> mobile games, themost popular was the native/preload games.More than 10 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts in thecountries surveyed played those games inDecember 2007. Rates were particularly high,at more than 20 perc<strong>en</strong>t, in the UnitedKingdom, Spain and Italy.Compared to native/preload games, downloadedgames were less popular. However, only veryfew respond<strong>en</strong>ts would use a browser to playgames, which accounts for less than twoperc<strong>en</strong>t in all the countries surveyed.U.S. MOBILE DATA/COMMUNICATIONSACTIVITIESS<strong>en</strong>ding/Receiving text messages and takingpictures are the most popular mobilecommunications activities. Hispanics use itmore than blacks and whites, while youngerg<strong>en</strong>erations have higher adoption rates thanolder g<strong>en</strong>erations.According to the Pew Internet & AmericanLife Project Survey conducted in December2007, nearly 60 perc<strong>en</strong>t <strong>of</strong> those who have amobile phone or PDA have used it tos<strong>en</strong>d/receive a text message or take a picture,while nearly three out <strong>of</strong> 10 have used it toplay games. S<strong>en</strong>ding/receiving e-mails,accessing mobile online, watching/recordingvideo and list<strong>en</strong>ing to music are still not verypopular – only less than 20 perc<strong>en</strong>t have tried.102
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS% <strong>of</strong> all mobilesubscribers35Monthly Mobile Game Consumption in 6 Countries,Dec. 2007Played game Used browser to play games Downloaded gamePlayed downloaded gamesPlayed native/preloaded games3028.1 28.72523.322.9202120.1 20.418.71515.61414.812.71011.710.68.797.7544.7 4.60.4 0.4 0.7 3.20.6 0.93.401.32.21.4France Germany Italy Spain UK U.S.Base: mobile subscribers in France (n=12,783), Germany (n=15,585), Italy (n=13,059), Spain (n=12,720), United Kingdom (n=15,259),and United States (n=32,262). Source: M:Metrics, Inc. © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008In terms <strong>of</strong> regular mobile activities done bythose U.S. mobile users, s<strong>en</strong>ding/receiving textmessages is still on the top, with more than 30perc<strong>en</strong>t doing so on a daily basis. About 15perc<strong>en</strong>t said they take pictures using theirmobile devices every day, while otheractivities are still rare on a daily basis.To break down by race, nine out <strong>of</strong> 10Hispanic respond<strong>en</strong>ts have emailed, accessedmobile Internet, s<strong>en</strong>t texts, tak<strong>en</strong> pictures, etc.,while only 79 perc<strong>en</strong>t <strong>of</strong> blacks and 73 perc<strong>en</strong>t<strong>of</strong> whites, respectively, have done so.More than 70 perc<strong>en</strong>t <strong>of</strong> Hispanic respond<strong>en</strong>tshave ever s<strong>en</strong>t/received text messages andtak<strong>en</strong> pictures using mobile devices, whileabout 55 perc<strong>en</strong>t <strong>of</strong> white people have done so.In terms <strong>of</strong> playing games on mobile devices,more than 35 perc<strong>en</strong>t <strong>of</strong> both black andHispanic respond<strong>en</strong>ts have done so, muchhigher than 23 perc<strong>en</strong>t <strong>of</strong> whites.%70605058 58Mobile Data and Communications Activities,U.S., December 2007% <strong>of</strong> cell/PDA users who have ever done this % <strong>of</strong> cell/PDA users who do this on typical day40302010031S<strong>en</strong>d orreceivetextmassages15Take apicture27Play agameSource: John Horrigan,Mobile Access to Data and Information,Pew Internet & America Life Project, March 2008© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200819 19 18 17 178 8 7S<strong>en</strong>d orreceivee-mailAccess theInternetfor news,weather,sport orotherinformation3Recorda videoPlaymusic7 6S<strong>en</strong>d orreceiveinstantmassages14Get mapor directionto anotherlocation103 3Watchvideo103
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER%9080706050537368Mobile Data and Communications Activities by Race,U.S., December 2007White Black Hispanic56 5771797390403020100S<strong>en</strong>d orreceivetextmassagesTake apicturePlay agameS<strong>en</strong>d orreceivee-mailSource: John Horrigan,Mobile Access to Data and Information,Pew Internet & America Life Project, March 2008© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200836 3530 3023252727 26 272217192118201513 1412 12Access theInternetfor news,weather,sport orotherinformationRecorda videoPlaymusicS<strong>en</strong>d orreceiveinstantmassagesMedian number <strong>of</strong>activities ever doneGet mapor directionto anotherlocation9 10Watchvideo17Perc<strong>en</strong>t whohave doneat least one<strong>of</strong> theseactivitiesWhite Black Hispanic2 2 3Hispanic respond<strong>en</strong>ts reported they record orwatch video via mobile devices more thanblack or white respond<strong>en</strong>ts. Three out <strong>of</strong> 10reported recording a video on mobile, versusonly 21 perc<strong>en</strong>t <strong>of</strong> blacks and 18 perc<strong>en</strong>t <strong>of</strong>whites. Sev<strong>en</strong>te<strong>en</strong> perc<strong>en</strong>t <strong>of</strong> Hispanics havewatched videos on mobile devices, higher than10 perc<strong>en</strong>t <strong>of</strong> blacks, and nine perc<strong>en</strong>t <strong>of</strong>whites.According to the survey, black respond<strong>en</strong>tswere most likely to access the mobile Internetfor news, weather, sports or otherinformation – 27 perc<strong>en</strong>t have done so, versus22 perc<strong>en</strong>t <strong>of</strong> Hispanic respond<strong>en</strong>ts, and 18perc<strong>en</strong>t <strong>of</strong> white respond<strong>en</strong>ts.To break down by age, an obvious tr<strong>en</strong>d is thatyounger g<strong>en</strong>erations t<strong>en</strong>d to use mobile dataand communications activities more – nearlyall the respond<strong>en</strong>ts betwe<strong>en</strong> age 18 to 29 haveever done at least one <strong>of</strong> the activitiesm<strong>en</strong>tioned, compared with 85 perc<strong>en</strong>t <strong>of</strong> thosebetwe<strong>en</strong> age 30 and 49, 63 perc<strong>en</strong>t <strong>of</strong> peoplebetwe<strong>en</strong> 40 and 64, and just 36 perc<strong>en</strong>t <strong>of</strong>people above age 65.More than 85 perc<strong>en</strong>t <strong>of</strong> those betwe<strong>en</strong> ages 18and 29, 65 perc<strong>en</strong>t <strong>of</strong> those betwe<strong>en</strong> ages 30 to49, but much less among those above age 50have s<strong>en</strong>t or received text messages or tak<strong>en</strong>pictures.According to the median among each agegroup, people betwe<strong>en</strong> age 18 and 29 havedone four <strong>of</strong> the activities, two among thosebetwe<strong>en</strong> 30 and 49, one among those betwe<strong>en</strong>50 and 64, and none among people above age65.104
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDS4. Impact on NewspaperIndustryWhile newspaper advertising in some parts <strong>of</strong>the world is flatt<strong>en</strong>ing, the opportunity to ridethe wave <strong>of</strong> double-digit digital advertisinggrowth has never be<strong>en</strong> more promising,according to several studies detailed in thischapter. Despite the slowdown <strong>of</strong> global printadvertising sp<strong>en</strong>ding, print remains the secondmost popular advertising medium, and by farclaims the lion’s share <strong>of</strong> sp<strong>en</strong>ding over digitalmedia. Specific digital advertising categoriesamong the most promising include video,display and search advertising, another studyshows.Meanwhile, studies looking at newspaperreadership and online news readership intandem have determined that while somedemographic groups are consumingnewspapers less, they are still consumingonline news in equal or greater amounts. Yetanother study showed that U.S. news Web sitescontinue to expand their reach in times sp<strong>en</strong>tand number <strong>of</strong> <strong>page</strong>s accessed. A Scandinavianstudy shows that Scandinavian publishers sayInternet and mobile will continue to begrowing competitive threats in the years ahead.Advertising in newspapersPrint advertisem<strong>en</strong>ts still made up the majority<strong>of</strong> overall newspaper ads, but online/digitalhas strong growth pot<strong>en</strong>tial.According to PricewaterhouseCoopers, theglobal newspaper publishing market will growfrom US$164.3 billion in 2002 to more than anestimated $200 billion in 2011.Compared with other media, the projectednewspaper publishing market growth is nearlystagnant. From 2007 to 2011, the projectedglobal CAGR is 2.1 perc<strong>en</strong>t, according toPwC. Estimated growth in Latin America andthe Asia Pacific region is the most robust, at4.9 perc<strong>en</strong>t and 3.4 perc<strong>en</strong>t, respectively. InNorth America, however, the projected marketgrowth is almost flat – with only one perc<strong>en</strong>tand 0.7 perc<strong>en</strong>t CAGR in Canada and theUnited States from 2007 to 2011, respectively.According to Veronis Suhler Stev<strong>en</strong>son andPQ Media, in 2006, total ad sp<strong>en</strong>ding for U.S.newspaper print advertising totalled $52.5billion, while sp<strong>en</strong>ding on newspaper digitalads accounted for $3.2 billion.105
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERUS$ millions250,000200,000150,000Global Newspaper Publishing MarketCanadaLatin AmericaAsia PacificEMEAUnited States164,318 167,540 173,398 177,852 181,043 183,207 187,191 191,141195,888200,722100,00050,0000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal20020.4-1.7-1.0-2.10.18.120031.5-0.83.1-0.54.12.020043.95.43.93.33.23.520051.010.43.02.31.92.62006p1.77.83.02.6-0.51.820071.35.53.11.8-1.41.220081.25.04.42.40.02.220091.04.83.02.30.92.120100.84.63.52.21.82.520110.64.43.22.12.22.52007-11CAGR1.04.93.42.20.72.1Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008% <strong>of</strong> respond<strong>en</strong>ts908070605040302010083.2E-mailmarketingAdvertising Tactics U.S. Marketers Plan to Use Next Year,Dec. 200661.7Searchmarketing36.2Displayads31.9Adnetworks27.7 27.7ContextualtargetingTraditionaldirect19.1Printadvertising14.9Onlinevideo10.6MobilemarketingSource: Datran Media “The 2007 Email Marketing Survey: Looking Forward,” February 2007 © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20084.3RSSOverall, print advertising still made up most <strong>of</strong>the sp<strong>en</strong>ding – accounting for 94.2 perc<strong>en</strong>t, whiledigital advertising sp<strong>en</strong>ding only repres<strong>en</strong>ted5.8 perc<strong>en</strong>t, as illustrated on <strong>page</strong> 107.Although digital advertising still accounted for aniche <strong>of</strong> the overall sp<strong>en</strong>ding on newspapers, someother reports indicate its pot<strong>en</strong>tial from eithermarketers’ or online publishers’ perspectives.According to the 2007 E-mail MarketingSurvey conducted by Datran Media, U.S.marketers plan to use more new ad formatsthan traditional ones in the future.More than 60 perc<strong>en</strong>t <strong>of</strong> the respondingmarketers planned to use e-mail or searchmarketing tactics in 2007, while less than 20perc<strong>en</strong>t planned to use print advertising. Someother new formats, such as ad networks andcontextual targeting, were favoured by about30 perc<strong>en</strong>t. Online video and mobilemarketing are still in their infancy, with lessthan 15 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts planning to usethem.According to the study “American <strong>Newspapers</strong>and the Internet: Threat or Opportunity?” by106
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSFeatures <strong>of</strong> America’s Top 100 Newspaper Web Sites, 2006 vs. 2007%10097952007 200692888080766061674051494420333133192923 22300RSSReporterBlogsVideoBlogComm<strong>en</strong>tsMostPopularPodcastsBookmarkingComm<strong>en</strong>tson ArticlesRegistration BlogrollSource: The Bivings Group, “American <strong>Newspapers</strong> and the Internet: Threat or Opportunity?” © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20087Advertising Sp<strong>en</strong>dingon <strong>Newspapers</strong>,Print vs. Digital, U.S., 2006Printad sp<strong>en</strong>ding$52,492 millionDigitalad sp<strong>en</strong>ding$3,222 million5.8%94.2%Source: “Communications Industry Forecast 2007 – 2011,” VeronisSuhler Stev<strong>en</strong>son, and PQ Media Alternative Media Research Series© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008the Bivings Group, in 2007, America’snewspapers increasingly adopted onlinefeatures on their Web sites, compared with theprevious year.In 2006, more than 75 perc<strong>en</strong>t <strong>of</strong> America’stop 100 newspaper Web sites featured reporterblogs and RSS, while more than 60 perc<strong>en</strong>thad video and blog comm<strong>en</strong>ts. In 2007, mor<strong>en</strong>ewspaper Web sites adopted these features;more than 90 perc<strong>en</strong>t had RSS, reporter blogsand video on the sites, while 88 perc<strong>en</strong>t hadthe blog comm<strong>en</strong>t function on the sites.Some other functions are still in growth stages,Online Ad Formats Supported byU.S. Interactive Publishers’ Sites,2005-2007% <strong>of</strong> respond<strong>en</strong>ts 2005 2006 2007Web banners 87.2 96.3 94.1Rich media 69.2 75.6 82.4Video* – 35.4 63.2Contextual advertising 51.3 67.1 63.2Search 39.7 47.6 45.6Pop-ups, pop-unders 60.3 53.7 44.1E-mail 55.1 39.0 42.6Behavioural targeting 24.4 29.3 33.8Co-registration* – 26.8 23.5* Not included as an option in 2005.Source: eMarketer / Advertising.com, “2007 Online PublisherSurvey,” March 2007© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008such as podcasts, bookmarking, comm<strong>en</strong>ts onarticles and registration.According to the 2007 Online PublisherSurvey conducted by Advertising.com, in 2007nearly 95 perc<strong>en</strong>t <strong>of</strong> U.S. interactive publisherssupported Web banner ads on their sites. Morethan 80 perc<strong>en</strong>t supported rich media ads,while some 60 perc<strong>en</strong>t supported video adsand contextual ads on their sites.Search advertising grew from 39.7 perc<strong>en</strong>t in2005 to 45 perc<strong>en</strong>t in 2007; behaviouraltargeting is on the rise as well.On the other hand, the use <strong>of</strong> pop-up andpop-under ads, and e-mail ads are in declineon the sites.107
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPER(%)%TV network newsOnline news and information sitesCable network newsRadioMajor daily newspapersLocal community newspapersMagazinesNational daily newspapersSchool & work newslettersOther sourcesCurr<strong>en</strong>t Sources <strong>of</strong> News and InformationWhat are your sources for news and information today?USA251814121284313UK36142166631112France2917920735613Base: 8,749 adults in five EU countries, US and Australia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Harris Interactive/Innovation Media Consulting Group, Newspaper Readership Survey 2007Italy3022511675813Spain221871613341212Germany28167181345513Australia35183171263511News sourcesTV network news and online sites are the mostpopular news sources, with Italians accessingonline sites most frequ<strong>en</strong>tly, and Britons theleast.Wh<strong>en</strong> Harris Interactive and Innovation MediaConsulting Group conducted a survey on 2007newspaper readership, it found that wh<strong>en</strong> itcomes to curr<strong>en</strong>t news and informationsources, television network news came out onthe top <strong>of</strong> the list across the surveyedcountries, especially in the United Kingdomand Australia, where more than 35 perc<strong>en</strong>t <strong>of</strong>respond<strong>en</strong>ts use it as a source for news andinformation.Online news/information sites and radio arealso popular sources, according to the survey,with more than 10 perc<strong>en</strong>t across all thecountries using them as news and informationsources. In Italy, about twice as many peopleuse online news and information sites as asource than use radio, with usage at 22 perc<strong>en</strong>tand 11 perc<strong>en</strong>t, respectively.More than 10 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts in Spain,Germany, Australia and the United States usemajor daily newspapers as a source, while therate is much lower in France, Italy, and theUnited Kingdom.National daily newspapers are most popular inSpain and the United Kingdom, with morethan 10 perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts choosing it as anews source, the survey found.Cable network news is particularly popular inthe United States as a news source, with usageat 14 perc<strong>en</strong>t. In all other countries, the rate islower than 10 perc<strong>en</strong>t.Local community newspapers, magazines,school & work newsletters, however, are usedby only a few people as sources <strong>of</strong> news andinformation, according to Innovation MediaConsulting Group and Harris Interactive.(%)Future Sources <strong>of</strong> News and InformationWhat do you think your sources for news and information will be five years from now?%Online news and information sitesTV network newsCable network newsRadioMajor daily newspapersLocal community newspapersMagazinesNational daily newspapersSchool & work newslettersOther sourcesUSA262215111063314UK26334144321113France26241116524615Base: 8,749 adults in five EU countries, US and Australia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Harris Interactive/Innovation Media Consulting Group, Newspaper Readership Survey 2007Italy392289444812Spain2817101510231212Germany23266171234513Australia30305131042412108
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSWh<strong>en</strong> asked about news and informationsources after five years, online news andinformation sites jumped to the top along withTV network news. In Italy, nearly four out <strong>of</strong>10 will use online sites as their news sources,while in the United Kingdom, 33 perc<strong>en</strong>t willuse TV network news as their primary newssource. In Australia, 30 perc<strong>en</strong>t will use onlinesites, while another 30 perc<strong>en</strong>t use TVnetworks news as their source.Radio will be down a bit, with less than 17perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts across all the countriesusing it as a source. <strong>Newspapers</strong>, including majordaily papers, local community papers, andnational daily papers, will not exceed 12 perc<strong>en</strong>t.Newspaper readershipHalf <strong>of</strong> Spaniards read newspapers five daysor more in a week, while readership is lowin France and the United Kingdom.According to the Newspaper ReadershipSurvey 2007 by Harris Interactive andInnovation Media Consulting Group,newspaper readership in Spain topped all othercountries – nearly half <strong>of</strong> respond<strong>en</strong>ts readnewspapers at least five days a week, whileanother 30 perc<strong>en</strong>t read it two or three times aweek. In Germany, the readership was alsohigh – with 46 perc<strong>en</strong>t reading a newspaperfive or more days a week, and another 22perc<strong>en</strong>t reading it two or three times a week.Readership was relatively low in France andthe United Kingdom – 44 perc<strong>en</strong>t and 40perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts, respectively, readnewspapers only one day or less in a week.According to Harris Interactive and InnovationMedia Consulting Group, nearly sev<strong>en</strong> out <strong>of</strong>10 U.S. respond<strong>en</strong>ts think online news from anewspaper site is as credible as the printedversion, while only less than 15 perc<strong>en</strong>t did notthink so.Online News CredibilityDo you personally consider online newsfrom a newspaper site to be as credibleas the news printed in the newspaper?%YesNoNot sureUSA661420Base: 2,383 U.S. Adults © <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008Source: Harris Interactive/Innovation Media Consulting Group,Newspaper Readership Survey 2007Newspaper ReadershipPlease indicate your frequ<strong>en</strong>cy <strong>of</strong> newspaper readership%Regular reader, 5 or more days per weekOccasional reader, 2 or 3 days a weekInfrequ<strong>en</strong>t reader, 1 day a week or lessUSA392536UK352440France253044Italy343531Spain483021Germany462232Australia333136Base: 8,749 adults in five EU countries, US and Australia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Harris Interactive/Innovation Media Consulting Group, Newspaper Readership Survey 2007%10080604020020Accessing Online SitesHow <strong>of</strong>t<strong>en</strong> do you access online news and information sites?19 9 20 33 16 15 1632373442 34 344128242824 25283117179USA UK France Italy Spain Germany Australia1327 24I access news and information sitesmultiple times per day;they are an extremely importantsource <strong>of</strong> information for me.I access news and information sitesat least once a day;they are important but not the onlysource I rely on.I access news and information sitesabout once a week;they are interesting but I t<strong>en</strong>d to relymore on other sources.I do not access news andinformation sites with any regularity;they are an not an importantsource <strong>of</strong> information for me.Base: 8,749 adults in five EU countries, US and Australia © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Harris Interactive/Innovation Media Consulting Group, Newspaper Readership Survey 2007109
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERThe Harris study also found that Italiansaccess online news and information sites mostfrequ<strong>en</strong>tly, with 33 perc<strong>en</strong>t saying they accessthem many times a day, while another 42perc<strong>en</strong>t check it at least once a day. In theUnited States, France, Spain, Germany andAustralia, nearly 50 perc<strong>en</strong>t or more <strong>of</strong>respond<strong>en</strong>ts access online news andinformation sites at least once a day, while inthe United Kingdom only about four out <strong>of</strong> t<strong>en</strong>do so, and more than 30 perc<strong>en</strong>t never accessnews and information sites.U.S. PRINTED NEWSPAPER READER PROFILEOlder g<strong>en</strong>erations read the print newspapermore, while young readers are less committed.Online news has the chance to attract thosewho don’t <strong>of</strong>t<strong>en</strong> read the printed newspaper, ordon’t read it at all.U.S. Print NewspaperReader Segm<strong>en</strong>t, by Age,Summer 2007Age demographic18+ (total audi<strong>en</strong>ce)18-2425-3435-4445-5455-6465+Heavy100315173116186296Medium100808711012310060Base: Total U.S. 18+, Home/Work LocationsSource: comScore Plan Matrix© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-2008Composition IndexLight100139106107908049According to a comScore Plan Matrixdemographic pr<strong>of</strong>ile conducted in the summer<strong>of</strong> 2007, U.S. newspaper readers skewed asbeing older g<strong>en</strong>erations, while younger agegroups are more likely to be either light users,or ev<strong>en</strong> non-readers.The index <strong>of</strong> heavy readers in the age group65+ is almost three times higher than theoverall index; the index <strong>of</strong> heavy readers isalso higher than the average in the age group55-64 and 45-54.In the younger g<strong>en</strong>erations, the index <strong>of</strong> heavyor medium readers is much lower, while that<strong>of</strong> light readers and non-readers is muchhigher than their counterparts in older groups.This indicates a tr<strong>en</strong>d that younger Americansare less committed to printed newspapers.Visits to U.S. News SitesAmong Print Newspaper ReaderSegm<strong>en</strong>ts, Summer 2007Print news brandsNYTimes.comWSJ.comWashingtonpost.comLA TimesChicago TribuneTV news brandsMSNBCCNNFoxnews.comCBS News DigitalABC News DigitalInternet news brandsGoogle News SearchAOL NewsYahoo! NewsTopix.comDigg.comComposition IndexHeavy Medium Light103147109109106998210411394821099482758541589894959390106889999106105102Base: Total U.S. 18+, Home/Work LocationsSource: comScore Plan Matrix© <strong>World</strong> <strong>Association</strong> <strong>Newspapers</strong> 2007-20089111910195931129082110849510699116122Nonreaders100138127109767137Nonreaders104106951121081061091291151021189499124102However, comScore found the light newspaperreaders or non-readers do not necessarilyconsume online news sites less. For those printnews brands, heavy print readers do consumeonline newspapers more than average, but thelight readers and ev<strong>en</strong> non-readers also readsome brands on a higher-than-average basis.For example, light print readers visit WSJ.comor Washingtonpost.com more than average,while non-readers frequ<strong>en</strong>tly go to the onlineversion <strong>of</strong> LA Times, Chicago Tribune, WallStreet Journal and New York Times.For TV news brands, the tr<strong>en</strong>d is ev<strong>en</strong> moreobvious. Non-readers visit television newssites more than average, especiallyFoxnews.com, while heavy or medium readersdon’t access TV news sites very <strong>of</strong>t<strong>en</strong>.For Internet news brands, non-readers visitTopix.com, Google news search and Digg.commore than the average, while light readers visitDigg.com, Topix.com and AOL News more.This study pointed out that ev<strong>en</strong> thoughprinted newspaper readers are aging, onlin<strong>en</strong>ews still has the opportunity to attract thosewho don’t read printed versions that much, ordon’t read them at all.110
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSU.S. ONLINE NEWSPAPER READERPROFILEThe majority <strong>of</strong> online newspaper readersconsume printed versions regularly, indicatingthat online news usage does not harm overallnewspaper consumption.According to the 2007 Newspaper NationalNetwork Integrated Newspaper FootprintStudy, the majority <strong>of</strong> the surveyed U.S. onlin<strong>en</strong>ewspaper readers are actually crossoverusers – 81 perc<strong>en</strong>t had also read a printednewspaper within the past sev<strong>en</strong> days. Anothernine perc<strong>en</strong>t read the printed version eight to30 days prior.Sev<strong>en</strong> perc<strong>en</strong>t said they read the printed papersmore than 30 days ago, while only threeperc<strong>en</strong>t said they never read the printedversion.Among those crossover users, nearly 87perc<strong>en</strong>t said they had maintained or increasedtheir time sp<strong>en</strong>t on newspaper media, eitheronline or in print.Fifty-two perc<strong>en</strong>t <strong>of</strong> respond<strong>en</strong>ts said theirtime sp<strong>en</strong>t on newspaper media remained thesame since they started using a newspaper site,while 35 perc<strong>en</strong>t said they ev<strong>en</strong> sp<strong>en</strong>t moretime on newspaper media. Only 12 perc<strong>en</strong>tsaid the time has decreased. This studyindicates that online newspapers do not harmoverall newspaper consumption.U.S. online newspapersAccording to the MegaPanel Data fromNiels<strong>en</strong> Online, the U.S. online newspaperaudi<strong>en</strong>ce has grown, from 39.97 million inDecember 2004 to 63.05 million in December2007, an increase <strong>of</strong> nearly 60 perc<strong>en</strong>t overthree years. Active reach for these onlin<strong>en</strong>ewspapers grew from 26 perc<strong>en</strong>t during thesame period.Printed Newspaper ReadershipAmong Online <strong>Newspapers</strong>Readers, U.S.Wh<strong>en</strong> was the last time you reador looked at the printed copy ?Read longerthan 30 days ago7%Read 8-30days ago9%Never read3%Readlast 7 days81%Base: 710 online newspapers readersSource: Newspaper National Network LP / Scarborough Research,the 2007 Newspaper National Network Integrated NewspaperFootprint Study© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Time Sp<strong>en</strong>t on Newspaper MediaAmong Crossover Users, U.S.Since you began using a newspaper Web site,has your combined time sp<strong>en</strong>t withprint and Web-based newspaper media?Increased35%Decreased12%Don’t know1%Remainedthe same52%Base: 576 readers who read both online and printed newspapersSource: Newspaper National Network LP / Scarborough Research,the 2007 Newspaper National Network Integrated NewspaperFootprint Study© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008MonthDec-04Dec-05Dec-06Dec-07U.S. Online Newspaper Total Audi<strong>en</strong>ce, Dec 2004 – Dec 2007Uniqueaudi<strong>en</strong>ce39,969,15852,406,63556,013,74263,052,143Activereach(%)26.0434.4434.6838.20Web <strong>page</strong>views1,414,249,6382,352,773,1192,688,692,7592,888,760,593Pagesper person36.2944.8948.0045.82Timeper person(hh:mm:ss)00:34:2300:40:3900:42:5500:41:57Visitper personSource: Niels<strong>en</strong> Online, MegaPanel Data © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-20086.917.757.807.83111
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERUVRank1234567891011121314151617181920CategoryNew York TimesWashington Post, TheUSA TodayWall Street JournalLos Angeles TimesBoston GlobeSan Francisco ChronicleChicago TribuneNew York PostSeattle Times/Post Intellig<strong>en</strong>cerHouston Chronicle, TheAtlanta Journal-ConstitutionOrlando S<strong>en</strong>tinel, ThePho<strong>en</strong>ix: Arizona RepublicNew York: NewsdayNew York Daily NewsSan Diego Union-Tribune, ThePhiladelphia Inquirer/NewsDallas Morning NewsPittsburgh Post-GazetteU.S. Top 20 Online Newspaper Sites,March – August 2007Uniquevisitors(000)13,85711,6829,1868,3374,9923,7983,6533,3162,8952,8382,5202,4482,1532,1502,0651,9791,6431,6201,5301,461Web <strong>page</strong>views(000)370,200190,997110,331163,05775,75873,56030,38661,73342,07143,68443,96180,29720,65045,21230,72426,16114,58930,66319,96150,397Web <strong>page</strong>sper visitorSource: Niels<strong>en</strong> Online © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-200827161220151981915151834132115149191335Visitsper visitor4.053.202.853.922.533.222.263.172.523.402.833.452.862.922.382.602.223.992.526.40Timeper visitor(hh:mn:ss)00:20:2000:14:1400:10:5700:09:5500:12:3400:14:1900:04:5500:11:4600:06:4700:14:5400:12:5300:18:1900:10:2200:08:3500:06:5700:11:0000:07:0900:15:0500:08:0000:30:34Total Web <strong>page</strong>s doubled from 1.4 billion<strong>page</strong>s to 2.9 billion <strong>page</strong>s. Pages per personalso increased from an average <strong>of</strong> 36.29 <strong>page</strong>sto 45.82 <strong>page</strong>s.A U.S. user sp<strong>en</strong>t 34.5 minutes on onlin<strong>en</strong>ewspapers on average in December 2004, andabout 42 minutes in December 2007.According to Niels<strong>en</strong> Online data, duringMarch and August 2007, the New York Timesranked as the most popular U.S. onlin<strong>en</strong>ewspaper site in terms <strong>of</strong> unique visitors.More than 13 million people visited the site,and a total <strong>of</strong> 370.2 million <strong>page</strong>s wereviewed.The Washington Post was ranked the second,with more than 11.68 million visitors, and 191million Web <strong>page</strong>s viewed.Two national papers, USA Today and the WallStreet Journal, ranked third and the fourth,with more than 9.18 million and 8.33 millionvisitors, and 110 million and 163 million <strong>page</strong>viewed, respectively.Rev<strong>en</strong>ue needs for 2012 in NordicregionNordic newspaper editors and managem<strong>en</strong>texpect future competition to come from digitalmedia, and foresee about 20 perc<strong>en</strong>t <strong>of</strong>rev<strong>en</strong>ues being g<strong>en</strong>erated from non-traditionalnewspaper sources over the next five years.Besides all the data coming from outsid<strong>en</strong>ewspaper firms, how do newspapercompanies themselves view the industryfuture? The 2007 Nordic Future and ChangeStudy for <strong>Newspapers</strong> found that digitalmedia, including the Internet and mobilephones, are considered by editors andmanagem<strong>en</strong>t <strong>of</strong> Nordic newspapers to b<strong>en</strong>ewspapers’ future competitors.More than sev<strong>en</strong> out <strong>of</strong> 10 respond<strong>en</strong>ts saidthe industry will face most <strong>of</strong> its competitionfrom the Internet in the next five years, thehighest among all the other media. More than60 perc<strong>en</strong>t said free papers with editorialcont<strong>en</strong>t will be a competitor in the future,too. Mobile phones, on the other hand, arealso considered a future competitor by morethan 40 perc<strong>en</strong>t, up from about 35 perc<strong>en</strong>t inthe 2006 survey.112
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSWhich Media do You Think Will Give the Traditional Newspaper MarketMost Competition in Next Five Years?Internet in g<strong>en</strong>eralFree papers with editorial cont<strong>en</strong>tThe mobile telephoneLocal Internet portalsPortable media (small PC’s)Local TVFree papers from shopping c<strong>en</strong>tresLocal radioOther (please specify)2007 2006% 0 10 20 30 40 50 60 70 80 90Survey base: 146 editors and managers <strong>of</strong> Nordic <strong>Newspapers</strong> © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Wilberg Managem<strong>en</strong>t as, “The Nordic Future and Change Study for newspapers 2007,” August 2007%353025Rev<strong>en</strong>ue Needs for 2012 in Nordic CountriesQuestion: To secure survival, what part <strong>of</strong> the total income/rev<strong>en</strong>ue<strong>of</strong> the newspaper will have to come from sources other than the traditionalprint newspaper over the next five years?2006 200719%201510500.5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% 61-70% 70%+Survey base: 146 editors and managers <strong>of</strong> Nordic <strong>Newspapers</strong> © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Source: Wilberg Managem<strong>en</strong>t as, “The Nordic Future and Change Study for newspapers 2007”, August 2007Local Internet portals were also picked by40 perc<strong>en</strong>t as the main competitor in the nextfive years.In addition, in order to secure survival, morethan 30 perc<strong>en</strong>t <strong>of</strong> the respond<strong>en</strong>ts said thatnewspaper companies should have about 21 to30 perc<strong>en</strong>t <strong>of</strong> their total rev<strong>en</strong>ues g<strong>en</strong>eratedfrom sources other than traditional printnewspapers during the next five years. Nearly30 perc<strong>en</strong>t said the rate should be around 11 to20 perc<strong>en</strong>t.On average, 19 perc<strong>en</strong>t <strong>of</strong> the rev<strong>en</strong>ues shouldbe g<strong>en</strong>erated from sources other than thetraditional printed version, according to thesurvey. The perc<strong>en</strong>tage increased overnumbers from the previous survey.113
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VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDS5. Newspaper Industry DigitalTr<strong>en</strong>dsAround the world, savvy newspapercompanies are achieving success with theirdigital rev<strong>en</strong>ue-making and audi<strong>en</strong>ce-buildingstrategies. Frequ<strong>en</strong>tly, the digital side <strong>of</strong>newspaper growth runs parallel to globaldigital media growth, as outlined in previouschapters <strong>of</strong> <strong>World</strong> Digital Media Tr<strong>en</strong>ds.For example, while broadband and videoconsumption online is booming, digitalnewspaper companies are riding the wave <strong>of</strong>growth by producing more video news and<strong>en</strong>tertainm<strong>en</strong>t products, and monetizing thiscont<strong>en</strong>t with video pre-roll and contextualdisplay advertising. While search advertising isbooming, especially with pure play Internetcompanies like Google and Yahoo!, newspapercompanies are taking advantage <strong>of</strong> the tr<strong>en</strong>dand tailoring search advertising strategies toboth their local markets and the cont<strong>en</strong>tstr<strong>en</strong>gths <strong>of</strong> their newspapers.This chapter will detail the digital tr<strong>en</strong>dsimplem<strong>en</strong>ted at newspaper companies,including:• Cont<strong>en</strong>t and advertising networkparticipation and creation• Local search Web sites• Digital classified advertising strategies• Mobile cont<strong>en</strong>t and rev<strong>en</strong>ue• Cross-media measurem<strong>en</strong>t strategiesNetworks2008 has be<strong>en</strong> the year <strong>of</strong> cont<strong>en</strong>t andadvertising network developm<strong>en</strong>t. While someadvertising and cont<strong>en</strong>t networks were createdmore than five years ago, some networksreached a tipping point in 2007 and 2008,while newer networks have experi<strong>en</strong>cedincredible growth.Networks are <strong>of</strong> growing importance tonewspaper companies, as competition foronline and mobile advertising dollarsgravitates toward the sites with the most trafficvolume and the most valuable audi<strong>en</strong>cetargets, including youth and the afflu<strong>en</strong>t.Experts say more than 90 perc<strong>en</strong>t <strong>of</strong> theadvertising dollars in digital go to fewer than10 perc<strong>en</strong>t <strong>of</strong> the Web sites, including Yahoo!,Micros<strong>of</strong>t and Google. According to Z<strong>en</strong>ithOptimedia, global online advertising115
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERexp<strong>en</strong>diture in 2008 will be US$47 billion, a26.5 perc<strong>en</strong>t increase over last year. In 2007,Google reported making $16.59 billion andYahoo! made $6.7 billion, mostly in searchadvertising rev<strong>en</strong>ues, while Micros<strong>of</strong>t earned$51.12 billion, less than one-t<strong>en</strong>th fromdisplay and search advertising on MSN.com(Micros<strong>of</strong>t Network) and YouTube.Aftonbladet’s “Traffic Machine”Drives New Growth10 most popular Web sites worldwide1. Yahoo2. YouTube (Google)3. Windows Live (Micros<strong>of</strong>t search <strong>en</strong>gineLive.com)4. Google5. MySpace (News Corporation)6. Facebook (private)7. MSN (Micros<strong>of</strong>t)8. Hi5 (private)9. Wikipedia (private)10. Orkut (Social network operated by Google)Source: Alexa, April 2008Networks can be aggregations <strong>of</strong> the properties<strong>of</strong> one company, such as Micros<strong>of</strong>t orSchibsted, or can be a consortium oraggregation <strong>of</strong> a variety <strong>of</strong> companies, like theYahoo! Newspaper Consortium or Japan’s47News.jp.Source: : Schibsted ASA© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008These aggregations produce the so-callednetwork effect, which is the added traffic andexposure to news and advertising cont<strong>en</strong>tcaused by driving traffic to destinations thatappeal to visitors <strong>of</strong> a portal or other site. Moretraffic produces more advertising sales, whichallows publishers to develop new andimproved technology and cont<strong>en</strong>t.Many media companies are taking advantage<strong>of</strong> the network effects strategy, includingSchibsted, a Scandinavian newspaper anddigital media company with holdings acrossCrosslinking is Key to Expon<strong>en</strong>tial Traffic GrowthSource: Schibsted ASA © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008116
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSAdvertising NetworkVirtuous CycleDistribution & trafficAdvertisers & saleTechnology & productsclassifieds network, FINN. It didn’t take longfor consumers to decide what they wanted – inthe mid 2000s, FINN overtook Aft<strong>en</strong>post<strong>en</strong> asthe leader in classified ad sales, and has grownexpon<strong>en</strong>tially ever since. FINN’s pr<strong>of</strong>itmargins hit 43 perc<strong>en</strong>t in 2007.Meanwhile, 2008 has also be<strong>en</strong> a banner yearfor newspaper advertising and cont<strong>en</strong>tnetworks. The Yahoo! newspaper consortiumnow has 634 newspaper participants, or aboutone-third <strong>of</strong> all newspapers in the UnitedStates. In February, several U.S. mediacompanies launched a new online newspaperadvertising network, which already includesmuch <strong>of</strong> the Yahoo! consortium network.Source: SFN © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Europe and beyond. For example, Schibstedhas more than tripled its traffic in Swed<strong>en</strong>across a variety <strong>of</strong> sites in the past few yearsby adopting an aggressive “traffic machine”approach.Among classified advertising networks online,FINN.no is the granddaddy. FINN is anaggregation <strong>of</strong> Norway’s vertical classified adsamong Schibsted and other newspaperproperties. It costs about the same to buy an adthrough Aft<strong>en</strong>post<strong>en</strong>, an Oslo-based newspaperowned by Schibsted, and its Norway-wideContinuous Growth and HighMargins for FINN.noNOK million600Rev<strong>en</strong>ue5004003002001000-100Operating pr<strong>of</strong>it margin-42% -10% 24% 33% 40% 43% 37% 43%2000 2001 2002 2003 2004 2005 2006 2007Source: Schibsted ASA© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008NOK millions120Aft<strong>en</strong>post<strong>en</strong>1009680 866040Norway: Aft<strong>en</strong>post<strong>en</strong> vs Finn in Car ClassifiedsFinn98 999385 878029 431272685644906410783117952026242201995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 E2006Source: Schibsted ASA117
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERquadrantONE: New online U.S.advertising networkAmerica’s largest newspaper companies inFebruary launched a new online advertisingnetwork, quadrantone.com, which allowsadvertisers to buy online ad space on localonline and broadcast channels in a singlemedia buy. Founding partners are Gannett Co.,Hearst Corp., Tribune Co. and The New YorkTimes Co. Within a month, the consortium’schief executive, Dana Hayes, reported that allYahoo! consortium members were also signedup for quadrantONE – 138 sites in all.The online ad network simplifies the adbuyingprocess for advertisers, allowing themto buy space online with newspapers andlocal broadcasting channels with a singlemedia buy.“The Newspaper Consortium takes anothergiant, logical step in uniting much <strong>of</strong> th<strong>en</strong>ewspaper industry for the b<strong>en</strong>efit <strong>of</strong>audi<strong>en</strong>ces and advertisers,” said MichaelRomaner, presid<strong>en</strong>t <strong>of</strong> MorrisCommunication’s Morris DigitalWorks andco-chairman <strong>of</strong> the consortium’s steeringcommittee, as reported in BizReport. As <strong>of</strong>deadline for WDMT, advertising has not yetbe<strong>en</strong> served on the network, and so far, it isunclear how much inv<strong>en</strong>tory participants arewilling to release for advertising fromquadrantONE. Cross-selling with the Yahoo!network might also be possible betwe<strong>en</strong> thetwo networks.Nearly all publishers in the consortium haveagreed to <strong>of</strong>fer inv<strong>en</strong>tory to the nasc<strong>en</strong>tnewspaper network, Hayes said.“This is the first step for the industry to cometogether and work on the national advertiserarea as a unified front,” said ChristianH<strong>en</strong>dricks, vice presid<strong>en</strong>t <strong>of</strong> interactivemedia at McClatchy Co., a member <strong>of</strong> theYahoo! group and new quadrantONE partner.H<strong>en</strong>dricks also wouldn’t divulge the amount<strong>of</strong> inv<strong>en</strong>tory McClatchy will op<strong>en</strong> up to th<strong>en</strong>etwork, or which sites the inv<strong>en</strong>tory willcome from, ClickZ reported.Hayes reported that the network repres<strong>en</strong>tedabout 170 big and small market newspaperand local TV sites covering 27 <strong>of</strong> the top 30markets, and about 50 million unique visitorsin December 2007. Advertisers and ag<strong>en</strong>cycalls are well under way, Hayes said.Yahoo! Newspaper ConsortiumgrowsYahoo! launched a newspaper advertising andcont<strong>en</strong>t consortium in the United States in2006, which has grown to 634 newspapers, orabout 30 perc<strong>en</strong>t <strong>of</strong> U.S. daily newspapers, as<strong>of</strong> February 2008.The network partnership includes participationin Yahoo! HotJobs as their exclusive and cobrandedonline recruitm<strong>en</strong>t product, thedistribution <strong>of</strong> local headlines across Yahoo!,the adoption <strong>of</strong> Yahoo! Search on newspapersites, cross-selling <strong>of</strong> advertising withnewspapers’ local sales forces selling localadvertisers’ inv<strong>en</strong>tory on Yahoo! and Yahoo!’snational sales force selling national advertisingon newspapers’ sites. Many <strong>of</strong> the membersalso will be exclusively using the Yahoo! adplatform to sell display advertising on theirsites.Since the launch in November 2006, HotJobshas se<strong>en</strong> a 50 perc<strong>en</strong>t year-over-year trafficgrowth.The growth <strong>of</strong> search functionalityand advertisingWhile search is one <strong>of</strong> the fastest growingforms <strong>of</strong> online advertising, the lion’s share <strong>of</strong>rev<strong>en</strong>ues are still made by a handful <strong>of</strong>companies, most notably Google and Yahoo!.According to Jupiter Research, WesternEuropean search advertising will grow from€3.1 billion in 2007 to €4.0 billion in 2011.Newspaper companies are trying to changethat by creating localised search <strong>en</strong>gines withlocal keyword search advertising strategies.Search advertising also is complem<strong>en</strong>tary tonewspaper advertising: the pay-per-clickmodel <strong>of</strong> vertical, and hyper-localised searchkeyword advertising is also one <strong>of</strong> the mostdifficult forms <strong>of</strong> advertising to sell into th<strong>en</strong>ewspaper. The hyper-local advertising istailor-made for search advertising.The NYTimes.com, for example, allowsdetailed vertical searches within each keycategory, like health, sports, culture, businessand sci<strong>en</strong>ce. The search <strong>en</strong>gine finds <strong>en</strong>triesfrom the <strong>en</strong>tire database on each topicsearched, such as “stem cell research” in theHealth Guide, or “<strong>World</strong> Cup Soccer” in theSports category. The search also producescontextual search advertisem<strong>en</strong>ts.118
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSNew York TimesSearch Within Each SectionCurr<strong>en</strong>t ArticlesPopular ArticlesUGCExternal linksand Third-PartyCont<strong>en</strong>tMultimediabillionsWestern Europe OnlineRev<strong>en</strong>ues, 2005-2011€9€8 Classifieds1.2Search1.2€7 Display1.14.0€61.03.83.50.9€53.10.8 2.7€42.20.7€3 1.6€22.52.7 2.9 3.02.0 2.2€1 1.602005 2006 2007 2008 2009 2010 2011Source: Jupiter Research© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Highlightsfrom ArchivesAdsSource: New York Times© <strong>World</strong> <strong>Association</strong> <strong>of</strong><strong>Newspapers</strong> 2007-2008Sesam provides news aggregations for Norwayfrom a variety <strong>of</strong> news sources, includingpersons connected to the story, and a listing <strong>of</strong>related and other top stories. The site alsoincludes a personalised section, where picturesand desired personal sources <strong>of</strong> informationappear on the scre<strong>en</strong>. These are “pulled”pieces that are updated as <strong>of</strong>t<strong>en</strong> as the storiesand multimedia become available. Video andblog items on the related stories also canappear. For example, if a searcher is interestedin the Beijing Olympics story, the aggregatednews story can include any number <strong>of</strong> relatedstories to compare and contrast facts, as wellas other dim<strong>en</strong>sions and media sources to newscoverage on the Olympics. The same could bedone about a person or ev<strong>en</strong>t in the news.The change in search functionality onNYTimes.com and other Web sites signals thathow consumers search for information ischanging, which requires a change in searchfunctionality on news and information Websites. The search ecosystem is slowly changingfrom a “push” mechanism, whereby userssearch into a keyword window for links todesired cont<strong>en</strong>t, to a very targeted “pull”model, whereby news and information desiredby the user is delivered to the user from a localnews portal. One such company that isexploring these possibilities is Schibsted’sSesam.no and Sesam.se local search Web sites.MobileMobile is perhaps the most promising mediafor advertising in the future, but ev<strong>en</strong> innewspaper companies with aggressive salesforces, mobile still repres<strong>en</strong>ts less than oneperc<strong>en</strong>t <strong>of</strong> overall newspaper companyrev<strong>en</strong>ues. For the long term, however, mobilerepres<strong>en</strong>ts a huge opportunity for subscriptionand advertising rev<strong>en</strong>ue. The following arethree case studies from three contin<strong>en</strong>ts, each<strong>of</strong> which is working hard to monetize mobile,and take advantage <strong>of</strong> the opportunities themedium pres<strong>en</strong>ts:ASAHI SHIMBUNThe second largest newspaper company inJapan and in the world, with a combinedmorning and afternoon circulation <strong>of</strong> 12119
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERAsahi Shimbun’s 12 Mobile Sites with 1 million SubscribersAsahi NikkanSportsChiezoAsahi Lifeline NewsCNN MobileAshi Mobile StationNikkan G<strong>en</strong>ino<strong>World</strong> BaseballNikkan HorseracingAsahi Nikkan MelozoNikkan BattleMobile Car GraphicAshi Otona no HondanaPrice/Month (US$)0.8750.8751.752.6252.6251.751.751.750.875/2.625/4.3751.752.652.625/4.375/8.75Cont<strong>en</strong>tsG<strong>en</strong>eral, sports newsand sports resultsDictionary and database servicefor articlesEmerg<strong>en</strong>cy informationJapanese & English CNN newsStreaming video news for 3GShowbiz and <strong>en</strong>tertainm<strong>en</strong>tnews & informationMLB news & informationHorseracing newsRing tone downloadsK1, PRIDE, boxing, wrestling,smo-wrestling news & informationMotor news, car photos,sound & movieElectronic book and comicMain functionText, photos, mailTextText, mailText, mailVideo, text, photoText, photoText, photoText, photoRing toneText, photoText, photo, videoApplication forbook readerStart dateFeb 1999Aug 2001Oct 2002Mar 2002Jun 2002Apr 2003Mar 2003Nov 2001Dec 2003Apr 2004Dec 2006Aug 2007Source: Asahi Shimbun © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008million, is making millions <strong>of</strong> dollars on itsmobile strategy. The mobile cont<strong>en</strong>t pricingstrategy is typically driv<strong>en</strong> by cont<strong>en</strong>tdistribution deals with telecoms. The AsahiShimbun, for example, has created 12 distinctmobile cont<strong>en</strong>t sites and has more than onemillion subscribers. Asahi’s most rec<strong>en</strong>tlylaunched site, Asahi Otona no Hondona, is aManga comics and electronic book site with avariable rate structure <strong>of</strong> betwe<strong>en</strong> US$2.63 and$8.75 per month. Asahi’s digital operation,including mobile, made about $33 million in2007.Telecoms, including Japanese mobile operatorNTT DoCoMo, earn about a 10 perc<strong>en</strong>tcommission on subscriptions for hosting theAsahi cont<strong>en</strong>t. Among the mobile sites isAsahi-Nikkansports, the most established,launched in 1999. It publishes about 170articles a day, plus photos and text messaging,and costs about US$0.87 per month. AsahiMobile Station provides nine 15-secondstreaming video clips for 3G phones, plus fivephotos per day, for a $2.62 per month fee.Nikkan Geino is a Hollywood-style<strong>en</strong>tertainm<strong>en</strong>t site, with text and photos, andcosts $1.75 per month.GANNETTGannett, including USA Today, launched itsmobile cont<strong>en</strong>t and advertising network amongits 100+ newspaper and TV station propertiesacross the United States in 2007. The mobilecont<strong>en</strong>t and ad network includes Mobile Web,SMS Short Code Advertising,by Country, July 2007CountryFranceGermanyItalySpainUKUSAReceivedSMS ad27,743,91615,089,75325,567,89524,122,58118,648,78636,671,828Perc<strong>en</strong>tsubscribersreceivingSMS ad62.332.556.875.441.417.2Perc<strong>en</strong>trespondingto SMS ad7.65.78.06.19.212.0Source: M:Metrics © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008USA Today cross-promoted advertising aboutthe Chevrolet Silverado from their newspaperto mobile services, <strong>en</strong>ticing readers to signup for short-code sports results through thecar manufacturers’ print ads.SMS, advertising and promotion compon<strong>en</strong>ts.Gannett’s mobile business was launched in1997 with news alerts and sports scores, but asyears progressed, the service began being used120
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSfor advertising and promotions as well. Areported one perc<strong>en</strong>t <strong>of</strong> Gannett’s digitalrev<strong>en</strong>ues are being made with mobile, but witha growth trajectory that surpasses Internetrev<strong>en</strong>ues. One compon<strong>en</strong>t is to cross promotefrom newspapers and TV broadcasts moreinformation found on mobile handsets, as withthis USA Today sports cross-promotion.Display and text message advertising also is agrowing business through the Gannett mobil<strong>en</strong>etwork. This Chevrolet display and textmessage campaign was successful for thecompany. The network <strong>of</strong> mobile sites for all100+ markets includes advertising, local andbreaking news, mobile search, video, mappingand custom short code keywords to supporton-air and print marketing.AGORA SAAgora SA in Poland, including GazetaWyborcza in Warsaw, have created a mobilestrategy in order to take advantage <strong>of</strong> thesignificant opportunities in a market with ahigh p<strong>en</strong>etration <strong>of</strong> mobile phone ownership.%9060300PLN min211470Poland:Agora’s Digital Objectives:Grow Reach and Rev<strong>en</strong>uesReach <strong>of</strong> Internet Portals in Poland74.768.165.758.753.048.145.5 45.8Agora’s Digital Rev<strong>en</strong>ues44.436.7onet.pl WP interia.pl o2.pl AgoraTotal rev<strong>en</strong>uesAdvertising+67%1-3Q06 1-3Q07September 06September 07+78%Source: Agora SA © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008The strategy is far-reaching, according toRobert Stalmach, director <strong>of</strong> mobile strategyfor Agora, and includes a mobile portal forGazeta Wyborcza using NewspaperDirectplatform, a mobile browser using Opera Minitechnology, a mobile citiz<strong>en</strong> programme tosolicit user-g<strong>en</strong>erated cont<strong>en</strong>t on mobile, amobile video, podcasts and radio functionalityin partnership with Nokia, gaming, FIFA andother sports, and much more.Stalmach’s strategy is to <strong>en</strong>gage a variety <strong>of</strong>cont<strong>en</strong>t types in order to reach a largeaudi<strong>en</strong>ce, particularly youth, the most rabidusers <strong>of</strong> video.“The key points are: Look for partnerships,<strong>en</strong>gage the youth and try and learn newthings,” Stalmach said.Researching online news users:ScrippsIn order to understand their online users’cont<strong>en</strong>t prefer<strong>en</strong>ces, Scripps <strong>Newspapers</strong>conducted a survey last year <strong>of</strong> 1,257 heavylocal news Web site users in their 14 marketsacross the United States.The online Web-based survey research wastwo-tiered: first conducting focus groups <strong>of</strong>users to determine prefer<strong>en</strong>ces about cont<strong>en</strong>t,functionality and satisfaction, and th<strong>en</strong> anonline survey to determine six “imperatives”that will set each Web team strategy in motion.“The results were very eye op<strong>en</strong>ing andextremely actionable,” said Scripps MarketingDirector Linda Sease. “Now it’s a matter <strong>of</strong>putting it into action. We have allowed each <strong>of</strong>the 14 Web sites teams to decide how they willput the results into action.”Before the focus group, an appointedemployee task force determined the scope <strong>of</strong>the research to keep the results focused andspecific, and asked themselves questions suchas, “What do we have to own?” Theydetermined their strategy would be to “own”local news and local breaking news in eachmarket from the perspectives <strong>of</strong> reach,p<strong>en</strong>etration, <strong>en</strong>gagem<strong>en</strong>t and competition.Harris Research conducted the online researchin the respective marketplaces.The six imperatives determined were:1. Provide unique local coverage and depththat is reliable, including school closings,121
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERev<strong>en</strong>t cancellations and background and depthon important local issues.2. Make an impact on community byinvestigating and reporting what readers needto know about important topics, includingnews <strong>of</strong> governm<strong>en</strong>tal abuse <strong>of</strong> public trust andother investigative stories.3. Up-to-the-minute news and weather.4. Credibility. People are becoming morediscerning about what is truth and what is noton the Web, and they are looking for crediblesites for news and information.5. A quick and easy place to search and scannews and information, including archives.6. Delighting the user by making theexperi<strong>en</strong>ce <strong>en</strong>joyable, and creatingopportunities to <strong>en</strong>gage people in the site inorder to bring <strong>en</strong>joym<strong>en</strong>t.“Now we’re communicating these to papers,and creating a master list, about what cont<strong>en</strong>texecutions can be made at a local level,” Seasesaid. “What we are very excited about is thatwe really know what drives satisfaction amongthis group <strong>of</strong> users we think <strong>of</strong> as our mostdemanding users.”122
VOLUME 6 REPORT N° 2WORLD DIGITAL MEDIA TRENDSConclusionThe global newspaper industry is growing, andby 2011 is expected to fetch more thanUS$130 billion in ad rev<strong>en</strong>ues, according toPricewaterhouseCoopers. However, theindustry is continuing to lose market share,particularly to the Internet, dropping from ashare <strong>of</strong> more than 30 perc<strong>en</strong>t in 2002, to aprojected 25 perc<strong>en</strong>t in 2011. During thistransition period, newspaper companies arelaunching new digital rev<strong>en</strong>ue strategies totake advantage <strong>of</strong> the double-digit rev<strong>en</strong>uegrowth virtually everywhere in the world.Some <strong>of</strong> the strategies include developm<strong>en</strong>t <strong>of</strong>new digital products, and the acquisition <strong>of</strong>Internet and mobile companies on theasc<strong>en</strong>dancy.This year, the <strong>World</strong> Digital Media Tr<strong>en</strong>dsyearbook captures some key tr<strong>en</strong>ds for globalmedia strategists and marketers more than 71research partners. The hundreds <strong>of</strong> data setspublished here signal the rise <strong>of</strong> the Internetand mobile media, which <strong>of</strong>fer newspapercompanies the opportunity to gain marketshare in rev<strong>en</strong>ue making, and to reachaudi<strong>en</strong>ces more precisely.In addition, the yearbook also examinesexisting online usage and online newspapertr<strong>en</strong>ds. According to the Online Publishers<strong>Association</strong> and Niels<strong>en</strong> Online, news andinformation cont<strong>en</strong>t takes up most <strong>of</strong> the timeU.S. users sp<strong>en</strong>t online, about 50 perc<strong>en</strong>t.Because the online sector is an area <strong>of</strong>substantial growth, it is also an area providingthe newspaper industry with manyopportunities, according to another study fromNiels<strong>en</strong>. From December 2004 to December2007, online newspaper unique audi<strong>en</strong>ces inthe United States increased from 39.97 millionto 63.05 million, and reach jumped from 26perc<strong>en</strong>t to 38 perc<strong>en</strong>t. Both <strong>of</strong> the studiesindicate that reading cont<strong>en</strong>t online is a growingtr<strong>en</strong>d, which may illuminate new opportunitiesfor newspapers during this chall<strong>en</strong>ging era.In rec<strong>en</strong>t years, several publishers haveadapted to the changing media landscape, andhave transformed from a printed business to amultimedia <strong>en</strong>terprise, providing their cont<strong>en</strong>ton a variety <strong>of</strong> platforms, and stepping out <strong>of</strong>local boundaries to seek partners, thusmaximising market scale.123
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERUS$ millions250,000200,000150,000Global Newspaper Publishing MarketCanadaLatin AmericaAsia PacificEMEAUnited States164,318 167,540 173,398 177,852 181,043 183,207 187,191 191,141195,888200,722100,00050,0000% annual changeCanadaLatin AmericaAsia PacificEMEAUnited StatesTotal20020.4-1.7-1.0-2.10.18.120031.5-0.83.1-0.54.12.020043.95.43.93.33.23.520051.010.43.02.31.92.62006p1.77.83.02.6-0.51.820071.35.53.11.8-1.41.220081.25.04.42.40.02.220091.04.83.02.30.92.120100.84.63.52.21.82.520110.64.43.22.12.22.52007-11CAGR1.04.93.42.20.72.1Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008Global Advertising Sp<strong>en</strong>ding and Market Share: Internet and <strong>Newspapers</strong>US$ millions140,000<strong>Newspapers</strong> ad exp<strong>en</strong>diture (US$ millions)<strong>Newspapers</strong> market share (%)Internet ad exp<strong>en</strong>diture (US$ millions)Internet market share (%)(%)35120,00030100,0002580,0002060,0001540,0001020,0005002002 2003 2004 2005 2006 2007 2008 2009 2010 2011Sources: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates © <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008The 2008 <strong>World</strong> Digital Media Tr<strong>en</strong>dsyearbook includes several case studies <strong>of</strong>newspaper companies that have successfullytak<strong>en</strong> advantage <strong>of</strong> the opportunities on digitalplatforms.For example, some newspaper companies joinnetworks in order to boost traffic and exposureto cont<strong>en</strong>t and advertising, such as Newspaperconsortium, quadrantONE or Japan’s47News.jp. Others, such as NYTimes.com,Sesam.no and Sesam.se, have tailored theirsearch functionality to better deliver the newsand information users are looking for.Additionally, some best practices on mobilestrategies have also be<strong>en</strong> id<strong>en</strong>tified. AsahiShimbun, for example, has created 12 distinctmobile cont<strong>en</strong>t sites and claims to have morethan one million subscribers. Gannett launched124
VOLUME 6 REPORT N° 2 WORLD DIGITAL MEDIA TRENDS%4035302520151050Share <strong>of</strong> Global Advertisingby Sector36,931,5TV <strong>Newspapers</strong> MagazinesRadio Out-<strong>of</strong>-home Internet37,6 37,929,626,514,2 13,414,212,48,3 10,88,97,55,72,8 6 5,7 5,82002 2005 2008 201137,12513,8127,36Source: PricewaterhouseCoopers LLP, Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008its mobile cont<strong>en</strong>t and advertising networkamong its 100+ newspaper and TV stationproperties across the United States last year.Agora SA in Poland has launched a mobileportal, mobile browser and mobile citiz<strong>en</strong>programme, as well as mobile video, podcastsand radio functionality.To set the global digital stage, WDMT hasagain published its Digital Hot Spots research,showing how the countries <strong>of</strong> the world rate interms <strong>of</strong> p<strong>en</strong>etration on Internet and mobileplatforms. The hottest countries rated withdigital connectivity are the United States,United Kingdom, Japan and Korea, as well asmost countries in Australasia, western Europeand northern Europe. These countries areleaders in digital media developm<strong>en</strong>t whoseexperi<strong>en</strong>ces can serve as important refer<strong>en</strong>cepoints. Some Asian and European countries,including many in c<strong>en</strong>tral and southernEurope, have continued to increase p<strong>en</strong>etrationsince last year’s study.WDMT will continue to track the hottestdigital countries around the globe for WDMT2009.The <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> hasmade a commitm<strong>en</strong>t to expand its research inthe area <strong>of</strong> digital media and digital rev<strong>en</strong>uemaking, and will continue to chronicle andanalyse the emerg<strong>en</strong>ce and growth <strong>of</strong> digitaldevelopm<strong>en</strong>ts on the global digital frontier.Digital Hot Spots, 2008Hottest Mobile > 65% Internet > 40%Hot in mobile Mobile > 65% Internet < 40%Hot in Internet Mobile < 65% Internet > 40%Coolest Mobile < 65% Internet < 40%Source: 2008 <strong>World</strong> Factbook, C<strong>en</strong>tral Intellig<strong>en</strong>ce Ag<strong>en</strong>cy© <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> 2007-2008125
MAY 2008 SHAPING THE FUTURE OF THE NEWSPAPERApp<strong>en</strong>dixWDMT research cont<strong>en</strong>t partnersThe <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong> would like tothank our research partners who have giv<strong>en</strong> WANpermission to use the data published in <strong>World</strong> DigitalMedia Tr<strong>en</strong>ds.1. Advertising.com (http://www.advertising.com/)2. Agora SA (http://www.agora.pl/)3. Alexa (http://www.alexa.com/)4. Arthur D. Little (http://www.adl.com/)5. Asahi Shimbun (http://www.asahi.com/)6. BIGresearch (http://www.bigresearch.com/)7. BIPE (http://www.bipe.fr/)8. Bivings Group (http://www.bivings.com/)9. Capgemini (http://www.capgemini.com/)10. Carat (http://www.carat.com/)11. China Internet Network Information C<strong>en</strong>ter(CNNIC) (http://www.cnnic.cn/)12. comScore (http://www.comscore.com/)13. Credit Suisse (http://www.credit-suisse.com/)14. Datran Media (http://www.datranmedia.com/)15. D<strong>en</strong>tsu Inc. (http://www.d<strong>en</strong>tsu.com/)16. eMarketer (http://www.emarketer.com/)17. European Information Technology Observatory(http://www.eito.com/)18. Exane BNP Paribas (http://www.exane.com/)19. Forrester Research (http://www.forrester.com/)20. Frost & Sullivan (http://www.frost.com/)21. Funambol (http://www.funambol.com/)22. Gartner (http://www.gartner.com/)23. Harris Interactive(http://www.harrisinteractive.com/)24. IAB (http://www.iab.net/)25. IBM Institute for Business Value (http://www-935.ibm.com/services/us/gbs/ bus/html/bcs_whatwethink.html)26. iCrossing (http://www.icrossing.com/)27. IDATE (http://www.idate.fr/)28. Infinita (http://infinita.co.jp/)29. Informa Telecom & Media(http://www.informatm.com/)30. Innovation Media Consulting Group(http://www.innovation-mediaconsulting.com/)31. Interdeco Expert(http://www.interdeco.fr/<strong>page</strong>s/groupe/expert.asp)32. International Telecommunication Union(http://www.itu.int/)33. Jack Myers (http://www.jackmyers.com/)34. Kairos Future (http://www.kairosfuture.com/)35. Lumin Collaborative (http://www.luminllc.com/)36. M:Metrics (http://www.mmetrics.com/)37. MAGNA Global (http://www.magnaglobal.com/)38. Market Intellig<strong>en</strong>ce C<strong>en</strong>ter (http://mic.iii.org.tw/)39. Marketing Charts(http://www.marketingcharts.com/)40. McCann Erickson (http://www.mccann.com/)41. Mobile Cont<strong>en</strong>t Forum(http://www.mobilecont<strong>en</strong>tforum.org/)42. Morgan Stanley (http://www.morganstanley.com/)43. MultiMedia Intellig<strong>en</strong>ce(http://www.multimediaintellig<strong>en</strong>ce.com/)44. Newspaper National Network LP(http://www.nnnlp.com/)45. New York Times Company(http://www.nytco.com/)46. Niels<strong>en</strong> Mobile (http://www.telephia.com/)47. Niels<strong>en</strong> Online(http://www.niels<strong>en</strong>-online.com/)48. Niels<strong>en</strong>/NetRatings(http://www.niels<strong>en</strong>-netratings.com/)49. Nokia (http://www.nokia.com/)50. OMD (http://www.omd.com/)51. Online Publishers <strong>Association</strong> (http://www.onlinepublishers.org/)52. Opp<strong>en</strong>heimer & Co. Inc. (http://www.opco.com/)53. OTX (http://www.otxresearch.com/)54. Ovum (http://www.ovum.com/)55. Pew Internet & American Life Project(http://www.pewinternet.org/)56. PQ Media (http://www.pqmedia.com/)57. PricewaterhouseCoopers (http://www.pwc.com/)58. Scarborough Research(http://www.scarborough.com/)59. Scre<strong>en</strong> Digest (http://www.scre<strong>en</strong>digest.com/)60. Shanghai iResearch(http://www.iresearch.com.cn/)61. Schibsted ASA (http://<strong>en</strong>.www.schibsted.no/<strong>en</strong>/)62. Tekelec (http://www.tekelec.com/)63. TKG (http://www.tkgconsulting.com/)64. TNS Media Intellig<strong>en</strong>ce(http://www.tns-mi.com/)65. Universal McCann(http://www.universalmccann.com/)66. Veronis Suhler Stev<strong>en</strong>son (http://www.vss.com/)67. Wilberg Managem<strong>en</strong>t as(http://www.erikwilberg.no/)68. Wilk<strong>of</strong>sky Gru<strong>en</strong> Associates(http://www.wilk<strong>of</strong>skygru<strong>en</strong>.com/)69. <strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong>(http://www.wan-press.org/)70. Yankee Group (http://www.yankeegroup.com/)71. Z<strong>en</strong>ithOptimedia(http://www.z<strong>en</strong>ithoptimedia.com/)126
THE PUBLISHER<strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong>7 rue Ge<strong>of</strong>froy St-Hilaire75005 Paris, FranceTel.: +33 1 47 42 85 00Fax: +33 1 47 42 49 48E-mail: contact_us@wan.asso.frWORLD ASSOCIATION OF NEWSPAPERS CEOTimothy BaldingSFN DIRECTORMartha L Stonemstone@wan.asso.frWDMT PROJECT MANAGERSFN BUSINESS ANALYSTErina LinEDITORSFN EDITORIAL MANAGERLeah McBride M<strong>en</strong>schingPAGE DESIGNER AND GRAPHICS DESIGNERMarianne Audouard<strong>World</strong> <strong>Association</strong> <strong>of</strong> <strong>Newspapers</strong>© WAN May 2008The cont<strong>en</strong>ts <strong>of</strong> this report may be used in whole or part by publishersin the execution <strong>of</strong> their business. Use <strong>of</strong> any part <strong>of</strong> the cont<strong>en</strong>t orintellectual property herein for the purpose <strong>of</strong> repres<strong>en</strong>tation or consultingrequires prior writt<strong>en</strong> cons<strong>en</strong>t <strong>of</strong> the author. Any reproduction requiresprior cons<strong>en</strong>t <strong>of</strong> WAN.127
SPECIAL REPORTMAY 2008 © WANShaping the Future <strong>of</strong> the NewspaperANALYSING STRATEGIC DEVELOPMENTS AND OPPORTUNITIES IN THE PRESS INDUSTRY
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