MEDIA MARKET DATA - World Association of Newspapers

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advertising spending in newspapers would increase marginally as the economy keepsimproving. In particular, it predicted that ad spending will rise in the“information/communications” and “home electric appliances/AV equipment” industries dueto progress in ground-based digital broadcasting and “number portability” for mobile phoneusers, as well as in the “finance/insurance” industry amid corporate realignments.Dentsu also predicted that ad spending by the “foodstuffs” and “cosmetics/toiletries”industries, which grew markedly in 2005, will keep rising in 2006, but at a slower rate.http://www.pressnet.or.jp/newsb/, March 2006Online Advertising Statistics / ForecastsUnited States of AmericaAdvertising on blogs, podcasts and RSS feeds could generate as much as $49.8 million forAmerica's alternative media industry this year, according to a new report. Confirming theincreasing power and commercial potential of independent online media, publisher of thereport and media research firm PQ Media estimated that advertising on user-generated mediaplatforms generated around $20.4 million in the US for 2005 but predicted 144.9 per centgrowth for 2006. Blog advertising accounted for 81.4 per cent of that revenue and is expectedto rise to $36.2 million for 2006. Podcasting is a huge growth area and is predicted to begin tooutstrip blog advertising and be worth $327 million by 2010. The number of podcasts in theUS has doubled since 2005 to more than 25,000. Advertising in RSS news feeds only becamesignificant in mid-2005 but had generated $650,000 by the end of the year. The sector isexpected to grow to £129.6 million in 2010. Technology, media and automotive brandsaccount for more than half the advertising in user-generated media. "Blog, podcast and RSSadvertising are being driven by some of the same factors boosting the growth of the overallalternative media sector: continued audience fragmentation, the perceived ineffectiveness oftraditional advertising, and the elusive but coveted 18 to 34-year-old demographic," saidPatrick Quinn, president of PQ Media. "Blog, podcast and RSS advertising have demonstratedan ability to reach younger demographics as well as influentials, and the media tend to behighly engaging. These are attractive trends to brand marketers that are focused on return oninvestment." Mr Quinn said that user-generated media will grow at triple-digit rates over thenext five year as technology and measurement techniques improve. PQ Media's 'Blog, podcastand RSS advertising outlook' is the first of five reports that follow six months' research intoalternative media in the US. http://www.journalism.co.uk/news/story1807.shtml; April 12,2006Product PlacementAustriaThe Austrian Newspaper Association has added its voice to the critics of efforts to liberalizetelevision advertising by revising the European "Television Without Frontiers"' directive. Theassociation wrote to the Austrian government -- which holds the Presidency of the EuropeanCouncil for the first half of 2006 -- saying the proposal is contradictory to the separation ofadvertising and editorial content. The association is concerned that the liberalisation ofadvertising, particularly product placement, will transfer revenue away from the press.Contact: Walter Schaffelhofer, gs@voez.at; Newsletter for Directors of WAN MemberAssociations - N ° 34 ; February 2, 200624
GermanyHeads of Baden-Wuerttemberg and Bavaria, Klaus Oettinger and Edmund Stoiber, said theproposed loosening of regulations on product placement was not acceptable and should berevised. The newly appointed Minister for Culture, Bernd Neumann, asked for a strictseparation between advertising and editorial content in the media. The German newspaperassociation BDZV has also expressed its opposition to the proposal. Contact: Dietmar Wolff,wolff@bdzv.de; Newsletter for Directors of WAN Member Associations - N ° 34 ; February2, 2006Legal / Company AnnouncementsHong KongAfter years of study, the stock exchange has finally decided to end its requirement thatcompanies buy newspaper advertisements to notify investors of significant news that mayaffect share prices. As a result, several English and Chinese-language newspapers, includingthe South China Morning Post, Standard and Hong Kong Economic Times, are expected tosuffer a significant loss of advertising revenue, while investors will have to turn to the web foraccess to company announcements. The move, which will also mean the routine suspensionof trading that accompanies many company announcements will no longer be needed, bringsthe Hong Kong market into line with reporting requirements long observed by most othermajor markets around the world. "Compared with other markets, Hong Kong's stock market isvery outdated and lagged behind in terms of using electronic ways to distribute information toinvestors," Hong Kong Exchanges and Clearing chief executive Paul Chow Man-yiu saidyesterday in a speech to the Chamber of Hong Kong Listed Companies. The changes will takeeffect in the second half, a bit earlier than originally expected. The exchange also made iteasier than originally proposed for companies to post their announcements on the internet bypermitting them to use third-party providers if they do not maintain their own websites. Asubstantial minority of the 1,140 listed companies have no internet presence. Starting in thesecond half, Mr Chow said, companies would only need to buy headline notices innewspapers to alert the investors that certain kinds of announcements had been filed with thestock exchange and posted on the internet. If the information was not available on the websiteof the exchange or the company, or a third-party website, the company would have to publishthe announcement in full in a newspaper. After six months, even the headline advertisementswill not be required. "The paid-advertisement newspaper requirement is very expensive forissuers," Mr Chow said. "It also leads to the companies frequently suspending their sharespending announcements printed on newspapers the following day." The changes "will allowinvestors to enjoy faster release of company information and less frequent suspension ofcompany shares". Brokers will also have to adapt to the new system. The AMS/3 stocktrading system will only give an alert rather than provide the full text of companyannouncements. They will have to turn to the web for further information. In addition, MrChow said he would like to end the requirement that announcements must be pre-approved bythe exchange's listing division staff. He would prefer to have company announcementspoliced after the fact by the exchange and the Securities and Futures Commission. "To allowcompany announcement to be disseminated without pre-vetting at any time during a day willmake it much quicker for a company to announce news and to further reduce the need forcompanies to suspend their shares," he said. Ultimately, Mr Chow also wants to permitinvestors to subscribe to new share offerings and vote on shareholder resolutions over theinternet. http://www.asiamedia.ucla.edu/article.asp?parentid=45733; May 17, 200625
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