World Press Trends: Newspapers Are A Growth Business

Newspaper circulations world-wide rose 2.57 percent in 2007 while rapid growth of both free titles and on-line platforms is expanding the reach of newspapers everywhere, Mr Balding said in presenting WAN’s annual update of world press trends.

WAN said global newspaper sales were up +2.57 percent over the year, and had increased +9.39 percent over the past five years.

When free dailies are added to the paid newspaper circulation, global circulation increased +3.65 percent last year, and +14.3 percent over the past five years. Free dailies now account for nearly 7 percent of all global newspaper circulation and for 23 percent of circulation in Europe alone.

Advertising revenues in paid dailies were up +0.86 percent last year from a year earlier, and up +12.84 percent over five years, WAN said. Print remains the world’s largest advertising medium, with a 40 percent share.

“Newspaper circulation has been rising or stable in three-quarters of the world’s countries over the past five years and in nearly 80 percent of countries in the past year,” said Mr Balding. “And even in places where paid-for circulation is declining, notably the United States and some countries in western Europe, newspapers continue to extend their reach through a wide variety of free and niche publications and through their rapidly developing multi-media platforms.”

More World Press Trends can be found here.

The future is print - and digital and niche

‘For too long, we in the newspaper industry have been immune to the risk of survival and to the urgency required when facing stiff competition. Suddenly, risk of survival is a regular topic of discussion. Are we up to the challenge that strong competition brings when it is pervasive and incessant?” Mr Singleton believes we are.

He acknowledges that the largest driver of pain has been the movement of classified advertising from print to online. But being aware of the problem also gives time to plan ahead for the future challenges, he said.

At MediaNews, the company consists of three key business units; the core newspapers, the internet operations and the targeted niche products and publications.

“We believe in print,” he says. “Our newspapers and partnerships have, in the past two years, invested almost half a billion dollars in new, modern and efficient printing and mailroom plants. Why? Because these investments help make our core more efficient as revenue is challenged. Efficiency in our core product is a key building block in our new strategy, because our core newspapers fund our growth of new businesses.”

“In five years, or 2012, we expect 68 percent of revenue to come from core, 20 percent from online and 12 percent from niche. On operating cash flow, our goal in 2012 is 40 percent from core, 50 percent from online and 10 percent from niche. That would be a great business, one that investors would applaud.”

Brazilian innovation - football and more

Brazil is famous for innovation: in football most of all, in biofuels - and in newspapers, says Mr Sirotsky.

For RBS, innovation falls into two areas: reader knowledge and multi-media distribution.

RBS surveys its readers daily through its 600-strong call centre, asking what story most attracted their attention. This information is shared with the newsroom, and influences the opinion columns and news stories prepared for the following day.

an important part in the progress of developing an innovation culture through people has been the daily surveys the company has where they ask their audience for suggestions, thoughts on topics etc.

RBS has been a multi-media company right from the start - it owns television, radio, newspapers, internet and events marketing companies. So a multi-media approach comes naturally, and it is in the process of integration all media.

The company has enjoyed five straight years of circulation and revenue growth, and has a profit margin of about 24 percent.

The Client is the Centre

When it comes to news distribution, technology brings down borders. But Mr Bowdler says that newspaper companies, in the search for more readers on-line, ought not to forget the local capabilities that digital technology offers.

“Central to the development of our digital capabilities has been an overriding determination for each and every one of our local editorial teams to embrace digital channels as an integral means of engaging with their local communities”, says Mr Bowdler, whose company publishes hundreds of local newspapers and websites.

“We want our websites to be regarded as an extension and complement to our print publications, thereby extending audience reach and the advertiser offering”, he says.

Johnston press is extending audience reach by targeting specific demographics, geographic areas and special interest groups.

“Our most important distinguishing capability as a business is the strength and depth of our community links, not least the heavy investment we continue to make in local journalism. And just as important has been the maintenance of a strong commercial relationship with local advertisers with the entire edifice being built on the real sense of trust which communities have in their local newspaper brand and what it stands for. Our core philosophy has long been summed up by the simple expression ‘Life is Local’, he says.

Environment as a business concept

The world is changing physically - carbon emissions and global warming are becoming major concerns for all industries, but especially for the car industry

“The regulators around the world are very focused on giving the car industry challenging targets to meet over the next five to ten years,” says Mr Arp.

But Mr Johansoon says this is an opportunity for the car industry to embrace “green products”, which he defines as products that meet reduced emission standards before such standards are required.

“Your customers, your readers, do they demand an environmentally friendly product?”, Mr Johansson asked the Congress audience. “If not now, I believe they will much more over time.”

“The challenge that people put on us is really a business opportunity,” he says.

Newspaper delivery trucks in Gothenburg, Sweden alone, drive 6,000 miles every night. “That’s a sizeable environmental impact and should be done in the most efficient way possible,” he says.

Volvo is building carbon dioxide-neutral trucks, developing engines that burn 7 different kinds of biofuels. It is also building carbon dioxide-neutral factories that use windmills, solar panels and other technology to replace fossil fuels.

He says building engines that burn less fuel is economically attractive and produces good climate effects.

“Not only do we make customers reasonably happy, and politicians reasonably happy, we also make our employees happy, as well as their families and the societies in which they work,” he says.