World Press Trends 2010 released

5 Aug 2010

According to the just-released World Association of Newspapers and News Publishers' (WAN-IFRA) annual world press trends update, newspaper circulation worldwide fell just slightly in 2009, despite the economic downturn, and the impact of the global recession on newspaper advertising revenues appears to be easing.

The report was released on Wednesday, 4 August 2010, at the WAN-IFRA Publish Asia conference in Kuala Lumpur, Malaysia.

The report showed that, contrary to conventional wisdom, newspapers remain a large and thriving industry world-wide, despite the impact of the global recession and the rise of digital media.

"Frankly, I have noticed a tendency amongst media journalists and commentators to dwell on the negative aspects of the business when it is clear there is much to be positive about," said Christoph Riess, CEO of WAN-IFRA, who presented the report.

The figures showed:

1.7 billion people read a daily newspaper every day, representing 25% of the world's adult population. When non-dailies are added, the global reach of newspapers is 37%.
Daily newspaper circulation fell - 0.8% in 2009 a small decline, given the depth of the recession, and in comparison with declines in other industries - but remained up +5.7% over five years. Circulation declines largely occurred in mature media markets of the developed world, while Asia continues to enjoy significant growth: up + 1% in 2009 and +13% over five years.
A majority of countries 61% report stable or increased circulations over one year, and 68% report stable or increased circulations over five years.
The number of newspaper titles worldwide was 12,477 in 2009, an increase of +1.7% from a year earlier.
Global newspaper advertising revenue fell -17% in 2009, largely reflecting the global recession's impact on all businesses. But advertising revenues are bouncing back and are expected to increase 3.5% in 2010, with growth in all regions, according to forecasts from Zenith Optimedia.
Television is the world's largest advertising medium with a 39% share, followed by newspapers with 24% and the internet with 12%. Much of internet advertising remains embedded in search, which is controlled by one player Google which takes 65% of the market.

Print-based but digitally expansionist

Though traditional newspapers in many mature markets have been losing readership, newspaper companies in those markets are in the forefront of the digital revolution, Riess said.

"Many newspaper companies in mature markets have embraced digital platforms and new forms of print publishing, growing their product portfolios, audience reach and revenues, even while their tradittional print circulations have come under pressure," he said.

"In fact, it is this metamorphosis of the printed newspaper business into a dynamic, print-based but digitally expansionist new media business model, that is both the problem and the opportunity for our industry," he said.

"The evidence is building that, for many, our print business is facing deep changes. We know of the challenges facing our large metro-based newspapers in developed markets, but we hear less of the changing and expanding printed newspaper market elsewhere, where new products and new newspapers are launched to match the needs of a rapidly evolving and increasingly sophisticated market."

The report includes data from all 233 countries and territories where newspapers are published.

The figures revealed:

Circulation

Global paid-for daily newspaper circulation fell -0.8% in 2009 from a year earlier, to 517 million copies sold. By region, circulation was up +1% in Asia and +4.8% in Africa. It fell -3.4% in North America, -4.6% in South America, -5.6% in Europe, and -1.5% in Australia and Oceania.
Over five years, global paid-for daily newspaper circulation rose +5.7%. It was up +30% in Africa, +13% in Asia, +5% in South America, and down -10.6% in North America, -7.9% in Europe, and -5.6% in Australia and Oceania.
When free papers are added, circulation fell -1.7% globally, but rose +7.7% over five years. Free newspapers now represent 20% of all circulation in Europe, 11% of South American circulation, 7% in North America, and 9% in Australia and Oceania.
The number of daily newspaper titles rose 1.7% worldwide in 2009, to 12,477. The number of titles increased +2.7% in Asia, +1.3% in North America, +1% in South America, +0.2% in Africa, and was stable in Europe, Australia and Oceania.
Global paid-for non-daily newspaper circulation was up +2.5% in 2009 from a year earlier, to 278 million copies sold. By region, non-daily circulation was up +3.1% in Asia, +1.8% in Australia and Oceania, +1.5% in Europe, and was stable in South America. It fell -6.2% in Africa and -1.4% in North America.
Over five years, global paid-for non-daily newspaper circulation rose +15.6%. It was up +18.7% in Europe, +17.3% in Asia and stable in South America. It was down -7.1% in North America, -5.1% in Australia and Oceania, and -0.1% in Africa.
The five largest markets for newspapers are: India, with 110 million copies sold daily, China, with 109 million sold daily, Japan (50 million), United States (46 million), and Germany (20 million). Sixty-seven of the world's 100 largest daily newspapers are Asian.

Advertising

Global advertising is forecast to grow +3.5% in 2010, according to Zenith Optimedia. Strong growth is forecast for Asia - +5.8%, while advertising is forecast to grow +2.2% in western Europe and +1.3% in North America.
Global newspaper advertising revenues fell -17% in 2009; North American newspapers lost a quarter of their advertising revenues. Ad spend was also down in Western Europe -13.7%, Central and Eastern Europe
-18.7%, Asia 9.6%, Latin America -2.9% and was stable in the Middle East and Africa.
Over five years, global advertising revenues fell -17.9%. It was down one-third in North America, -15% in western Europe and -5.4% in Asia. It rose +46.5% in Latin America, +1.1% in central and eastern Europe, and was stable in the Middle East and Africa.
There is a growing body of evidence that shows print advertising is more effective than either television or internet advertising. A recent study in the United Kingdom by Microsoft indicates that every pound spent on print advertising yields 5 pounds in revenue. This compares with returns of 2.2 pounds for television and 3.4 pounds for online advertising.

Online

At no time in the foreseeable future will digital advertising revenues replace those lost to print, making the search for new business models including paid-for online access for news a key goal for many newspapers.
Mobile news delivery appears to hold more promise for newspapers than traditional internet delivery: there is 100 penetration across demographics; mobile content payment is well established. But there are drawbacks as well:
an advertising model has yet to emerge; and those who control the channels have, as yet, shown little interest in content and partnerships.
Digital readers also show promise, but must overcome problems of readability and the need for powerful batteries, which are expected to be heavy and polluting for the foreseeable future.

The World Press Trends 2010 edition is now available at www.wan-press.org/worldpresstrends2010/home.php.

In addition to more data, country by country, the 1,230-page publication includes information on:

Non-daily publications, which in some markets are performing better than dailies;
Advertising expenditure forecasts for newspapers and magazines, together with total spending forecasts, for 2010, 2011 and 2012;
Trends in format and cover price of daily newspapers; in colour capability; in media consumption, in display and classified advertising income, in distribution of sales between single copy and subscription;
Data on the top-selling titles in each country, the top sectors for advertising in newspapers and the major advertisers;
Information on the tax rates and conditions for the press, on subsidies, on ownership regulations, and more.