the media scenario challenges and changes in the press rome 30 march 2007 09h30/ 13h30 protomoteca -...

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