Print newspapers’ circulations
continue to rise in Asia
Newspaper circulation declined only 0.9 percent
globally in 2012 from a year earlier
- The newspaper industry generates over $200 billion of revenue annually.
- More than half the world’s adult population reads a daily newspaper: 2.5 billion
in print, and over 600 million in digital form.
- Increasing audience engagement is future for news media.
- Circulation increased over five years in Asia by 9.8 percent.
Print newspapers circulation continued to rise in Asia and decline in mature markets in the West, while digital advances have increased the audience for newspaper content as never before. But the growth on digital platforms is not being followed by consequent growth in advertising revenues. News sites enjoy high readership, but the level of reader engagement is low, shows the annual World Press Trends survey of WAN-IFRA, containing data from more than seventy countries, accounting for over ninety percent of the global industry’s value.
“The news industry’s future is about how citizens engage and participate in their society,” said Vincent Peyrègne, CEO of WAN-IFRA, presenting the annual survey to a gathering of more than 1,500 publishers, chief editors and other delegates at the combined World Newspaper Congress, World Editors Forum and World Advertising Forum held recently in Bangkok, Thailand. “Even if paid circulation declines, newspapers reach a vast number of readers – print, online and mobile – and the latest trends show that advertising engagement in print keeps performing well and improves in many countries,” he said, adding, “Newspaper professionals understand, more than ever, the benefits offered by the digital world to improve the quality of their conversation with communities, identify new territories where they can expand their role, help reduce the complexity of the world, and increase the trust of their audience.”
The data showed that both circulation and advertising performance & vary widely by region. Newspaper circulation declined only 0.9 percent globally in 2012 from a year earlier, as rising circulations in Asia offset circulation losses elsewhere. Circulation declined 2.2 percent globally between 2008 and 2012, with the steepest declines in Europe. Circulation declined over one year by 6.6 percent in North America, 5.3 percent in western Europe, 8.2 percent in eastern Europe, and 1.4 percent in the Middle East and North Africa. It increased 1.2 percent in Asia, 3.5 percent in Australia and New Zealand, and 0.1 percent in Latin America. Circulation declined over five years by 13 percent in North America, 0.8 percent in Latin America, 24.8 percent in Western Europe, and 27.4 percent in eastern Europe. Circulation increased over five years in Asia (9.8 percent), the Middle East and North Africa (10.5 percent) and Australia and New Zealand (1.0 percent).
Newspaper advertising revenues declined two percent globally in 2012 from a year earlier, and 22 percent since 2008. The five-year decline was driven primarily by newspaper advertising declines in the United States, the world’s largest advertising market. Print advertising fell 42 percent in the United States over five years, accounting for nearly three-quarters of the global loss in newspaper advertising. The decline in US newspaper advertising revenues reflects the US publishers’ traditionally high dependence on classified advertising. An estimated 80 percent of classified is now digital. Though much of it is among ‘pure players’ that are owned by publishers, that revenue is not reflected in industry statistics.
Advertising revenues declined over one year by 7.6 percent in North America, 3.4 percent in western Europe, 5.6 percent in eastern Europe, and 8.3 percent in Australia and New Zealand. It rose 9.1 percent in Latin America, 3.6 percent in Asia, and 2.3 percent in the Middle East and North Africa. Advertising revenues declined over five years by 42.1 percent in North America, 23.3 percent in western Europe, 30.2 percent in eastern Europe, 22.7 percent in the Middle East and North Africa, and 24.9 percent in Australia and New Zealand. It increased 37.6 percent in Latin America and 6.2 percent in Asia.
Biggest challenge
The survey also found that the biggest challenge for publishers continues to be how to increase the engagement of audiences on digital platforms. While more than half of the digital population visits newspaper websites, newspapers are a small part of total internet consumption, representing only seven percent of visits, only 1.3 percent of time spent, and only 0.9 percent of total pages visited.
Paid content is a growing revenue stream. According to the Alliance of Audited Media, nearly half of US publishers now adopt some form of paid content model. Forty percent are using a metered model, one-third charge for premium content, 17 percent require payment for any access, and 10 percent use some other model.
Mobile and tablets are rapidly becoming a medium of choice for many news consumers, accounting for 20 percent of page views in markets where data is available. Research in the United States, Germany and France suggest that news engagement via tablet, as measured by time spent with news content, is equal to that of the printed newspaper.
Newspapers are actively developing revenues from non-traditional sources. In the United States, 27 percent of newspaper company revenues now come from non-traditional sources: eleven percent from digital, eight percent from new revenue from other sources (service to clients in addition to advertising), and eight percent from non-publishing revenue (e-commerce).
There is a distinct difference in the performance of single copy and subscription sales. In markets where data is available, single copy sales have declined 26 percent over the last four years, compared to a decline of eight percent in subscription sales. The packaging of print/digital subscriptions is becoming increasingly successful.
For the first time, World Press Trends also includes definitive readership data on the Middle East, where readership varies enormously, ranging from five percent of people in Iraq to seventy percent in the United Arab Emirates and Kuwait. The Middle East data shows a direct correlation between newspaper success and their appeal to female readers. As readership levels rise, so does the ratio of female to male readers. In Iraq, one-third of readers are women, compared to Kuwait where more women read newspapers than men. WAN-IFRA has previously reported that appealing to female readers is a key determinant in market success over the long term.
