The Facts about Newspapers in 2007...Not the Myths

"The chorus of disapproval for newspapers is certainly a global trend these days...But their views are belied by the facts about the relevance, vibrancy and future vitality of newspapers in this fast-growing digital age."

In this 57-page presentation, the President of World Association of Newspapers (WAN) traces newspaper trends as part of WAN's global initiative to promote the power of the newspaper. Founded in 1948, WAN is a non-profit organisation representing newspaper associations, news agencies, and 18,000 publications from over 102 countries and territories.

In short, Gavin O'Reilly of WAN here argues that newspapers are very much alive and growing. As reported here, Independent News & Media PLC (INM) has found a growing weekly global reach for this medium of communication, with over 100 million consumers receiving newspapers weekly. Despite findings like these, O'Reilly indicates that there is an increasingly strong consensus that there is a fundamental mismatch between media spending and media consumption when comparing print and newspapers against the internet, for example. Along these lines, there are various myths about newspapers, such as that "digital is killing the newspaper", "only old people read newspapers", and "circulation is falling".

Yet, in fact, according to WAN's "World Press Trends 2006" (which was updated in February 2007), circulations continue to grow. For instance, the global circulation of paid-for dailies increased by 1.9% in 2006 (amounting to 510.4 million subscribers). To cite a few specifics, the percentage change in circulation of paid-for dailies in South America was 4.59%, with similar (but smaller) increases in all other regions WAN studied except North America (where there was a 1.97% decrease in the circulation rate). The author indicates that the number of paid-for titles in 2006 was 11,142 (up 3.1% compared to the prior year). Considering all regions, globally, from 2002 to 2006, the number of paid-for titles increased 16.88%. With regard to weeklies and Sunday papers, WAN has found that circulations increased 25.2% and 15.7%, respectively, over the past 5 years. In some markets (such as Germany, the United States, and the United Kingdom), O'Reilly indicates, weeklies "far exceed" the number of dailies.

The presentation next explores trends in free newspapers, indicating rapid growth in free dailies across all regions.

The author indicates that newspapers and magazines are the largest advertising medium - with a combined 42.3% share. According to PricewaterhouseCoopers (PwC)'s "Global Entertainment and Media Outlook 2006-2010" (June 2006), global newspaper advertising revenues increased 4% in one year and 15.6% over 5 years, with growth in all regions. This same study found that global newspaper advertising revenues are forecast to grow by 17.0% to 2010 (faster than the preceding 5 years) - with double-digit growth in all regions. PwC forecasts that newspapers will achieve a 4.0% compound annual growth rate (CAGR) from 2006-2010. Another study cited here indicates that, for every hour American people consume their media, advertisers invest 8 times more on newspaper readers than they
do on TV viewers.

As part of O'Reilly's effort to debunk myths about newspapers, he cites a study carried out by the United Kingdom (UK)'s TGI in 2007 that found newspaper readership having grown by 2.1% over
the past 5 years, with readership among 15- to 24-year-olds growing by 6.9% and 65+ readership growing by 3.7%.

O'Reilly explores the "changing media matrix", which he describes as included proliferating "consumer touch points" (traditional and non-traditional, at home and anywhere else, digital and analogue, etc.). He examines specific mediums, such television. For instance, a 2005 Forrester Research study found that 36% of regular internet users in the United States reported reducing their television viewing in the past 10 years, whereas 64% of internet users indicated that they had not changed their newspaper consumption. Similar drops in TV viewership have been found in the UK, O'Reilly indicates.

O'Reilly cites research suggesting that newspaper websites extend audience reach. For instance, Scarborough Research calculates that newspaper sites deliver to an incremental 2%-15% integrated audience in the top 25 United States newspaper markets. There is a significant overlap, he claims, between broadband penetration and newspaper penetration.

O'Reilly explains these trends by noting that newspapers have benefits like being portable, convenient as to time and place, engendering loyalty to a title (not a medium), accessible worldwide (off- or online), disposable, content-rich, non-perishable, review-able, and cheap to consume. Drawing on these strengths, newspapers have worked to stimulate demand through active marketing and innovations (illustrated here). In conclusion, the author suggests that consumer engagement is "the new order, and newspapers are continuing to focus on doing what they do best...local, local, local..."