the media scenario challenges and changes in the press rome 30 march 2007 09h30/ 13h30 protomoteca -...
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The media scenario
CHALLENGES ANDCHANGES IN THE PRESS
ROME 30 MARCH 2007 09h30/ 13h30PROTOMOTECA - CAMPIDOGLIO
NEWSPAPERS | THE MARKET VIEW?
NEWSPAPERS | THE MARKET VIEW?
circulations
are notgrowing
circulations
are notgrowing
today’syoung
don’t read
today’syoung
don’t read
consumersare ‘timestarved’
consumersare ‘timestarved’
reluctance topay for
information
reluctance topay for
information
indifferencefrom
advertising/ creatives
indifferencefrom
advertising/ creatives
online isdestroyingclassified
pillars
online isdestroyingclassified
pillars
broadbandis industry’s
demise
broadbandis industry’s
demise
AN UNCERTAINFUTURE?
AN UNCERTAINFUTURE?
print is deadprint is dead
NEWSPAPERS | IS THERE A FUTURE?
NEWSPAPERS | THE MARKET VIEW…
NEWSPAPERS | OUR JOURNALISTS’ VIEW…
a sense ofimpending doom carries
most Irishmenthrough long periods of
tranquillity…
Irish Playwright/ Author, Oscar Wilde (1892)
“
”
NEWSPAPERS | THE MARKET VIEW?
Newspa
pers h
ave 30
%
of glo
bal
advert
ising
spend
Print is NOW the biggest advertising medium in the world with 43% share
1.4 billion people nowread a daily newspaper
439M BUYERS & GROWING!
IT’S WORTHUS$180 BILLION
NEWSPAPERS | GLOBAL HEADLINES
Source: W.A.N. World Press Trends © 2006
• Advertising revenues up 5.7% in past 12 months;
• World's 2nd largest advertising medium (30.2%), exceeding the combined spend of radio, outdoor, cinema, magazines and the internet;
• Global circulation sales up 2.36% over 12 months;
• Global circulation sales up 9.5% over past 5 years;
• Daily titles surpass 10,000 for the first time in history;
• More than US$8 billion invested in newspaper technology in the past five years;
• Nearly 2 million employees worldwide;
NEWSPAPERS | GLOBAL FACTS
The media scenario
CHALLENGES ANDCHANGES IN THE PRESS
ROME 30 MARCH 2007 09h30/ 13h30PROTOMOTECA - CAMPIDOGLIO
OPPORTUN
OPPORTUN
ITIESITIES
1. Risk Profile has shifted to the upside
2. Multiples are nearing historic lows
3. “Structural concerns are overdone”
4. “We’re back in bubble territory…”
2007 | CHANGING INVESTOR PERCEPTIONS?
• Fragmentation
• Media Consumption is NOT mutually exclusive
• Online Promise – perhaps not as compelling
• Broadband Internet – confounding Audio-Visual
• Newspapers Online – Extending Reach
• Newspapers: Delivering on what we do best…
2007 | WHAT GIVES?
frag·men·ta·tion [ fràgmən táysh’n ] noun
1. breaking up of something: the process of shattering or breaking up into fragments
2. loss of unity and cohesion: the loss of unity and cohesion and the breakup of something into isolated and often conflicting elements
MARKET DYNAMICS | THE REALITY IS…
• Ultimately portable
• Extremely convenient as to time and place
• Engender loyalty to title, not medium
• Widely accessible worldwide (off/ on-line)
• Easily disposable and/ or ‘Cut Out ‘n Keep’
• Very content rich
• Non-perishable
• Review-able
• Cheap to consume
NEWSPAPERS | DOING WHAT WE DO BEST…
The Newspaper: The Ultimate Browser
It’s amazing that the
amount of news that
happens every day, always
just exactly fits in the
newspaper…
U.S. comedian, Jerry Seinfeld (1992)
“
”
NEWSPAPERS | DOING WHAT WE DO BEST…
• NO Paradigm shift…
• RISK: Inertia becomes Consumer Apathy
• STIMULATE DEMAND = Marketing
• Online ( audience aggregation)
• Seek EFFICIENCIES for Reinvestment in BRAND MARKETING and INNOVATION
• Remember… Local | Local | Local
NEWSPAPERS | REALITY CHECK
RE LITY checkRE LITY check
• Attack those “Legacy Costs”
• “Free-up” internal inefficiencies and reinvest
• Move to a more “flexi” cost base
• Invest for the Future | BRAND MARKETING
• Vigorous Pricing: Vigorous marketing
• Continuous Innovation
• Active product development
• “meet & then exceed consumer expectations”
NEWSPAPERS | REALITY CHECK
RE LITY checkRE LITY check
• Sell the reality that is “Fragmentation”
• Newspapers are the mass-market medium of the future, as broadcasts/ online fragments
• Newspapers deliver targeted and reliable demographics – not haphazard audiences
• Online – don’t be defensive, be aggressive
• BUT always insist on an Return on Investment
• Build INCREMENTAL audience, revenues & profits
• Talk up your business
NEWSPAPERS | REALITY CHECK
RE LITY checkRE LITY check
I think the papers in this country are better than they’ve ever been.
Some of the circulations are declining - but if you look at their
full reach, if you add up their printed circulation to the internet
circulation, they’re probably extending their reach.
Rupert Murdoch Chairman and CEO, News Corporation
“
”
Source: Interview in The Daily Telegraph, 23rd January 2006
NEWSPAPERS | THE FUTURE…
© Ziarul Financiar
the power of the medium… NEWSPAPERS | THE FUTURE…
The media scenario
OPPORTUNITIES ANDCHANGES IN THE PRESS
ROME 30 MARCH 2007 09h30/ 13h30PROTOMOTECA - CAMPIDOGLIO
Embracing a S
TRATEGY for
GROWTH