GOOD AND BAD NEWS ABOUT NEWSPAPER ADS

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The Financial Times headline:

Online ads to overtake US newspapers

The story:

The rapid growth of online advertising is expected to see the sector overtake US newspaper advertising in terms of size by 2011.

The forecast comes against a backdrop of declining advertising sales reported by newspaper groups this year in spite of continued strength in the US economy.

The findings are from a widely-watched annual research report on the media sector by Veronis Suhler Stevenson (VSS).

In the 2007 study, published on Tuesday, VSS forecasts that online advertising will grow by more than 21 percent per year to reach $62 billion in 2011, making it bigger than newspaper advertising, which is expected to total $60bn in 2011.

“The path of online advertising and newspaper advertising is a continuation of what we’ve been observing for many years, but it is finally getting to the point where the lines will cross,” said James Rutherfurd, managing director at VSS.

The VSS forecasts also illustrate the lag between changes in consumers’ behaviour and advertising spending.

The survey also measured the time spent on different media, and in 2007 the amount of time spent reading newspapers is expected for the first time to be overtaken by time spent online.

Spending by companies on information and media, including business-to-business magazine and trade shows, is also increasing, up 8.1 per cent in 2006 to $227 billion.

“Knowledge and information industries drive the US economy, meaning that information is a critical tool,” said Mr Rutherfurd.

“Companies are prepared to pay a lot of money to get that information.”

Good news if you are in the informartion business.

Bad news if you are in the newspaper printing business.

(Thanks to Michael Agar in London)



A WORLD NEWSPAPER RECORD FOR BAD TASTE IN COLOMBIA

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Well, this must be a world record.

The newspaper front page with less news than advertising.

Yes, this is a tradition of Colombian newspapers, but on a day with such terrible news (the killing by FARC guerrillas of 11 kidnapped members of parliament), this doesn’t make any sense.

At all!

Bad design.

Bad taste.

Bad journalism.

Bad editorial decision.

Bad advertising.

You need to respect readers and advertisers.



WORLD NEWSPAPER TRENDS

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Cape Town (South Africa).

Timothy Balding, CEO of the World Association of Newspapers (WAN) opens the World Newspaper Congress and World Editors Forum with a presentation with masive data about World Press Trends.

His main headline:

Global Newspaper Circulation, Advertising On the Upswing.

And now tha facts (bolds are mine)

Newspaper circulations world-wide rose 2.3 percent in 2006 while newspaper advertising revenues showed substantial gains.

WAN said global newspaper sales were up +2.3 percent over the year, and had increased +9.48 percent over the past five years.

Newspaper sales increased year-on-year in Asia, Europe, Africa, South America, with North America the sole continent to register a decline.

When free dailies are added to the paid newspaper circulation, global circulation increased +4.61 percent last year, and +14.76 percent over the past five years.

Free dailies now account for nearly 8 percent percent of all global newspaper circulation and 31.94 percent in Europe alone.

Advertising revenues in paid dailies were up +3.77 percent last year from a year earlier, and up +15.77 percent over five years, WAN said.

No figures were available for free daily advertising revenues.

“Newspapers in developing markets continue to increase circulation by leaps and bounds, and in mature markets are showing remarkable resilience against the onslaught of digital media.

Even in many developed nations the industry is maintaining or even increasing sales,” said Timothy Balding.

“At the same time, newspapers are exploiting to the full all the new opportunities provided by the digital distribution channels to increase their audiences.

“As the digital tide gathers strength, it is remarkable that the press in print continues to be the media of preference for the majority of readers who want to remain informed.”

“These results are even better than we expected from provisional data available a few months ago.

Once again we can see that far from being an industry in decline, as the ill-informed and short-sighted continue to contend, newspapers are alive and well and exhibiting enormous innovation and energy to maintain their place as the news media of preference for hundreds of millions of people daily”.

- Paid circulation grew +2.3 percent worldwide in 2006 from a year earlier, taking global sales to a new high of more than 515 million daily. With free dailies added, daily circulation increases to nearly 556 million, a +4.61 percent increase from the total of paid and free dailies in 2005.

- The total number of paid-for daily titles was up 3.46 percent in the world in 2006 and up 17.67 percent since 2002 to a record 11,207 titles. The total number of paid and free titles increased by +4.33 percent in 2006 and by +19.63 percent since 2002.

- Newspaper advertising revenue increased 3.77 percent in 2006 from a year earlier, and was up 15.77 percent over five years.

- Paid daily newspaper circulations were up in 31 percent of the countries surveyed in 2006, stable in half the countries and down in 19 percent. Over the past five years, newspaper circulations were up in more than half of the countries surveyed and stable in 20 percent.

- More than 515 million people buy a newspaper every day, up from 488 million in 2002. Average readership is estimated to be more than 1.4 billion people each day.

- Seven of 10 of the world’s 100 best selling dailies are now published in Asia. China, Japan and India account for 60 of them.

-The five largest markets for newspapers are: China, with 98.7 million copies sold daily; India, with 88.9 million copies daily; Japan, with 69.1 million copies daily; the United States, with 52.3 million; and Germany, 21.1 million.

- Circulation sales were up +3.61 percent in Asia in 2006 over the previous year, up +4.55 percent in South America, up +0.74 percent in Europe, up +0.65 percent in Africa, up +2.11 percent in Australia and Oceania, and down -1.97 percent in North America.

- The number of paid-for newspaper titles increased everywhere but South America, where it was stable. The number of newspaper titles was up 7 percent in Asia, 1.3 percent in Europe, 0.67 percent in North America, 1.2 percent in Africa and 1.14 percent in Australia and Oceania.

Daily paid newspapers in Europe saw a +0.74 percent increase in circulation in 2006, and a -4.12 percent decrease over five years. When free dailies are added, circulation increased +10.19 percent year-on-year and +12.84 percent over five years.

- In the European Union, paid daily newspapers saw a -0.87 percent percent drop in 2006 and a -5.63 percent drop since 2002.

Combined with free dailies, circulation in the EU rose +7.56 percent over one year and +12.22 percent over five years.

Newspapers in 10 European Union countries increased their total circulation in 2006.

They were: Austria +9.43 percent, Estonia +7.81 percent, Ireland +5.54 percent, Italy +1.88 percent, Lithuania +1.52 percent, Malta +5.26 percent, Poland +2.13 percent, Portugal +8.95 percent, Romania +25.70 percent, and Slovakia +1.09 percent. Circulation was stable in Cyprus.

Those reporting losses were: Belgium -2.86, Czech Republic -1.78, Denmark -1.71, Finland -0.71, France -1.55, Germany -2.1, Greece -4.85, Hungary -0.62, Latvia -7.76, Luxembourg -0.87, The Netherlands – 2.07, Slovenia – 18.60, Spain 2.14, Sweden -2.14 and the United Kingdom -2.66.

Over the five years 2002-2006, circulation rose in nine countries: Austria +10.25 percent, Cyprus +11.11 percent, Czech Republic +1.24 percent, Estonia +8.24 percent, Ireland +35.36 percent, Malta +25 percent, Poland +24.95 percent, Portugal +12.70 percent, and Slovenia +1.74 percent.

In the same period, circulation declined in: Belgium -3.46 percent, Denmark -11.5 percent; Finland -1.94 percent; France -5.70 percent; Germany -9.35 percent; Greece -2.79 percent; Hungary -9.03 percent; Italy -4.49 percent; Latvia -17.05, Luxembourg -3.39, Netherlands -11.13 percent; Slovakia -9.18 percent; Spain -1.13 percent; Sweden -3.95 percent and the United Kingdom -12.5 percent.

Elsewhere in Europe, circulation in 2006 increased +2.80 percent in Turkey and +36.25 percent in Croatia. It declined -2.91 percent in Norway, and -2.54 percent in Switzerland.

Over five years, the decline was -10.1 percent in Norway, -9.64 percent in Switzerland and -6.20 percent in Croatia, while it climbed +55.57 percent in Turkey.

- The number of paid-for newspaper titles in the EU climbed +0.41 percent in 2006, to 1,482, and was up +3.2 percent over five years. When paid and free titles are combined, the number of titles rose +2.57 percent over one year and +8.44 percent over five years.

- The circulation of US dailies fell -1.9 percent in 2006 and -5.18 percent over five years. Most of the decline came in evening dailies, which saw a year-on-year circulation decline of -4.62 percent, compared with only -1.48 percent for morning dailies. Over the past five years, evening dailies declined -19.62 percent, compared with a -2.52 percent drop for morning newspapers.

- In Japan, newspaper sales fell by -0.83 percent in 2006. Over five years, sales were down -2.42 percent.

- Chinese newspaper sales continue to perform well, up +2.27 and +15.53 percent over one and five years.

-In Latin America, where it has been difficult to obtain reliable data, Brazilian newspaper sales were up + 6.50 percent in 2006 and up +3.70
percent over five years. Colombian newspaper sales increased 3.23 percent in 2006 but were down -11.1 percent over five years.

- Indian newspaper sales increased 12.93 percent in 2006 and 53.63 percent in the five-year period.

- Elsewhere in Asia, sales were up in Malaysia (+1.82 percent), Singapore (+4.06 percent), Bangladesh (+8.3 percent) and Korea (+10.59 percent) over one year, and down in Taiwan (-6.67 percent). Over five years, sales rose in Taiwan (+2.44 percent), Malaysia (+19.97 percent), Singapore (0.48 percent), Thailand (+12.31 percent), Bangladesh (+30 percent) and Korea (+19 percent).

- Sales in Australia recorded an increase of + 2.95 percent in 2006 and were stable over five years, while New Zealand newspaper sales were down -1.10 year-on-year and down -3.22 percent over five years.

-In Africa, sales were up 8.24 percent in South Africa in 2006, and 43.18 percent over five years. Sales were stable in Nigeria and Kenya in 2006 and up 7.89 percent and 1.90 percent respectively over five years.

- The Japanese remain the world’s greatest newspaper buyers, with 630.9 daily sales per thousand adults. They are followed by Norway with 601.2 sales per thousand, Colombia with 587.8, Finland with 514.7 and Sweden with 466.2.

- The Belgians spend the most time with their newspapers — 54 minutes a day -followed by the Chinese, Finns and Brazilians, with 48 minutes each, on average.

-Sunday newspaper circulations declined -3.69 percent in 2006 and -6.2 percent over five years. The United States and the United Kingdom remain the largest markets for Sunday papers by far.

- Circulation for non-daily newspapers rose 7.29 percent over one year and 18.68 percent over five years.

On advertising

- Global newspaper advertising revenues have increased for four straight years and were up +3.77 percent in 2006.

- Newspapers share of the world ad market held relatively steady with 29.6 percent, marginally down from 29.8 percent in 2005. Newspapers remain the world’s second largest advertising medium, after television, with more revenue that radio, cinema, outdoor, magazines and the internet combined.

When newspapers and magazines are combined, print is the world’s largestadvertising medium, with a 42 percent share, compared to 38 percent for television.

Seventeen countries saw newspaper advertising market share growth in 2006: Austria, Belgium, Switzerland, Czech Republic, Greece, Indonesia, India, Hong Kong, Colombia, Mexico, Puerto Rico, Bahrain, Kuwait, Oman, Qatar, United Arab Emirates, and South Africa.

Over five years, newspapers in 12 countries and territories saw increased market share: Austria, Denmark, Greece, Poland, Russia, Slovenia, Taiwan, Puerto Rico, Kuwait, Oman, Saudi Arabia and the United Arab Emirates.

- Newspaper advertising revenues in the USA, by far the largest newspaper advertising market in the world, decreased by -1.68 percent in 2006 but increased by +5.69 percent over the last five years.

- In Japan, ad expenditures declined in 2006 by -3.20 percent but were up 10 percent over the past five years.

- China saw an increase in advertising revenues of +16 percent last year, and +58 percent over five years.

- Newspaper markets in the European Union saw a +1.36 percent increase in newspaper advertising revenues in 2006, and a +39.54 percent increase over five years.

Twenty-one of 24 EU countries for which data was available showed increases in advertising revenue in 2006: Austria +5.7 percent, Belgium +19 percent, Bulgaria +71.90 percent, Czech Republic +12.47 percent, Denmark +0.53 percent, Estonia +15.64 percent, Finland +2.50 percent, France +1.37 percent, Germany +1.13 percent, Greece +1.45 percent, , Ireland +4.49 percent, Italy +3.77 percent, Latvia +4.87 percent, Lithuania +6.12 percent, Luxembourg +43 percent, Poland +11 percent, Romania + 11.18 percent, Slovakia +11 percent, Slovenia +20.96 percent, Spain +0.21 percent, and Sweden +0.05 percent,

Newspaper advertising revenue declined in Hungary (-6.49 percent), The Netherlands (-0.46 percent), and the United Kingdom (-4 percent).

Over five years, advertising revenues was up in all 23 countries for which data was available: Austria +50.38 percent, Belgium +107.5 percent, Bulgaria +3.98 percent, the Czech Republic +91.74 percent, Denmark +42.71 percent, Estonia +124.68 percent, Finland +2.5 percent, France +33.80 percent, Germany +20.14 percent, Greece +57.20 percent, Hungary +62.88 percent, Ireland +63 percent, Italy +39.53 percent, Latvia +49.66 percent, Lithuania +71.85 percent, Luxembourg +43.24 percent, Netherlands 54.74 percent, Poland +200 percent, Romania +111.57 percent, Slovakia +179 percent, Spain +0.51 percent, Sweden +46.7 percent, and the United Kingdom +25 percent.

- In India, newspaper advertising revenues increased +23.18 percent over one year and +85 percent over the last five. South Africa also saw remarkable gains — +20.71 percent over one year and 141 percent over five years. Turkey’s percentage gains were +3.01 percent in 2006 and +152 percent over the past five years.

- In Australia revenues were down +2.77 percent over one year but rose +65.44 percent over five years. New Zealand saw a marginal +0.84 percent gain last year and an increase of 33.28 percent over five years.

Free Dailies

- A total of 287 free daily newspapers had a combined circulation of 40.7 million daily, a circulation increase of 55 percent over one year and 241 percent over five years. Twenty-seven million of those daily copies are distributed in Europe alone.

- The five largest free dailies are Metro in the United Kingdom (1.13 million copies), Leggo in Italy (1.05 million), 20 Minutos in Spain (997,000), Que! in Spain (970,000), and ADN in Spain (914,000).

The World Press Trends 2007 edition is now available at http://www.wan-press.org/worldpresstrends.

INNOVATION will present its 2007 INNOVATIONS IN NEWSPAPERS Global Report this Wednesday.

A report that we have produced since 1999 for the World Association of Newspapers (WAN).



MATIN PLUS WITH AN AD AS ITS COVER

Files under Advertising, Free papers, MATIN PLUS, Paris, front page | May 12th

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The new free paper in Paris gives its front page to an advertiser.

At least for one day, Matin Plus did’t have a politician on the cover.



ON MOBILE ADVERTISING ALTERNATIVES

Files under Advertising, Digital Media, Mobile | Nov 13th

Ken Elefant wrote an interesting piece in Venture Beat about the most common mobile advertising platforms and how he sees them performing in the long term.

It’s a good read.

Read Here