C H I S H O L M

JimJimJim جيم 吉姆 ि�जम ジム짐 ג 'ים

ДжимJim جيم 吉姆 ि�जम ג 'ים ジム 짐

Джим

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Where’s the future?Where’s the value?Where’s the future?Where’s the value?

And why’s it not happening?And why’s it not happening?

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Newspaper circulationDecline and accelerating

Circulation declining and rate of decline accelerating

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News in print and digital still out-paces “high-speed” digital in all forms across all content.

Half a billion people now access their newspaper by the internet, with over 100 million of these accessing only the digital version

4Sources: World Press Trends, ComScore, IPSOS, ITU

Print Phone

All viewers

everAll genres

2G and below

3G and above

Broadband

Both

Print & digital

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Over 40% of the world’s digital audience read a newspaper online (up from 34% a year ago)…….

……. but…..

5Sources: Comscore

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Digital newspaper audiences still generate interest rather than intensity

High occasional visitor numbers do not translate into high levels of regular traffic

Newspaper print accessibility is not replicated in the fixed PC environment: Navigation? Range of alternative services?

USA Brazil Germany Russia France Australia

% of web users who ever visit a paper site

66.9 39.1 43.2 33.0 43.5 49.0

% of daily users who visit a paper site daily

17.1 8.5 11.7 7.4 11.6 14.4

% of all pages viewed per visitor per month

1.1 0.6 1.9 0.5 1.6 1.1

6Sources: Comscore

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The publisher’s horizon (Western markets)Our challenge is audience intensity

Over a month, print continues to deliver over 50 times the audience impact of newspaper digital websites.

Comparing print and digital

Print Digital

Circulation 100 -

Readers per copy per day 2.64 1.28

Visits per month 16.00 6.12

Pages per visit 36.00 3.46

Total pages per month 1,521 27

Source: Chisholm analysis of ComScore data. (Data for USA, UK and Germany)

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The publisher’s horizon (Global)Our challenge is audience intensity

Readers per copy

Monthly uniques per

reader

Visits per unique

Pages per visit

Pages per circulation

Philippines 8.4 0.0 3.1 4.4 3.6India 3.0 0.1 5.0 5.1 3.9

Taiwan 3.3 0.2 2.6 6.4 12.6Japan 1.1 0.5 5.2 4.4 12.7Brazil 6.1 0.2 3.2 4.2 14.2

Indonesia 10.4 0.0 3.7 8.2 15.2Venezuela 5.7 0.1 4.2 4.5 15.5Malaysia 4.9 0.2 5.6 3.7 24.3Poland 7.1 0.2 3.5 5.0 25.0Russia 1.5 1.1 4.7 3.4 27.5

Hong Kong 4.8 0.3 4.8 4.7 31.4Switzerland 3.0 0.2 6.6 6.8 32.3

Austria 3.1 0.3 6.3 6.4 36.2Germany 3.0 0.4 8.3 5.5 49.9Singapore 2.4 0.4 10.5 5.0 51.2

Italy 0.7 2.7 5.4 5.8 61.3UK 2.3 0.8 9.2 4.8 77.4

France 2.9 0.9 6.2 5.2 81.3Finland 2.1 0.6 12.8 5.0 88.6

South Korea 2.2 0.8 9.1 5.5 89.7Sweden 2.5 0.6 11.7 5.3 91.7Australia 4.0 0.6 6.7 6.0 92.3Denmark 4.1 0.5 10.6 4.4 94.0Norway 2.2 0.6 14.4 5.2 100.3Ireland 3.6 0.7 9.9 4.0 100.3USA 3.3 0.9 10.3 4.4 131.8

Belgium 4.2 0.5 9.5 6.3 131.9Spain 4.7 0.7 7.5 5.4 141.4

New Zealand 3.1 1.3 9.5 3.9 147.0Netherlands 3.2 0.6 14.5 6.4 186.0

Canada 6.3 0.6 10.7 4.5 188.4Chile 11.4 0.7 5.0 5.6 236.5

Argentina 6.3 1.1 5.1 9.0 326.4

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Small steps. Big rewards.Meet the multiplier.

UK Newspapers net 1.7 8.9 4.8 72.8US Newspapers net 2.7 10.1 4.4 121.8DE Newspapers net 1.1 8.1 5.5 50.4UK Mail Online 5.7 7.0 4.2 168.0UK Guardian 33.7 5.3 3.6 640.0UK Telegraph 7.6 2.7 5.4 110.2UK The Sun Online 1.6 5.7 4.6 42.2UK Mirror Online 2.6 2.7 2.4 16.4UK Independent 20.9 2.5 3.3 173.5UK Metro.co.uk 2.4 2.4 2.3 13.6US New York Times 35.6 6.1 3.3 713.2US USA Today 13.7 3.6 3.5 173.5US Washington Post 30.6 4.6 2.5 355.1US Wall Street Journal 8.2 4.1 2.5 82.6DE Bild.de 2.7 9.2 4.3 108.2DE Welt 4.7 3.3 2.7 42.0DE Sueddeutsche.de 7.2 3.1 4.7 106.0DE Faz.net 4.7 3.5 2.4 40.8DE RP-online.de 4.6 2.5 5.4 61.0DE Zeit.de 5.1 3.5 2.7 48.0

Title totals 7.8 4.9 3.5 133.1

Unique visitors per circulation

Visits per visitor

Pages per visit

Page impressions per copy

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Newspaper advertisingDecline and accelerating

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Advertising disconnect. No longer part of the economic cycle

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Digital is having only a small impact on newspaper revenues and share of media spend

Newspapers

$42B

2007$76B

2011$96B

2011$128B

2007

Digital

Combined value $2.1 billion 2.2% of all press advertising

2.8% of digital total

6.6% of non-search digital

© 2012 WAN-IFRASources: CHISHOLM analysis. Advertising Association, Zenith Optimedia

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Digital advertising is the natural evolution of traditional marketing as well as media solutions.

Traditional media advertising has slowly been superseded by direct marketing for decades

Digital is as much of an extension of direct marketing as it is of traditional media Search still accounts for over 60% of online advertising, as display advertising stalls in

the digital environment

13

Search accounts for 58% of digital and 13% of all advertising expenditure.

Search accounts for 58% of digital and 13% of all advertising expenditure.

Sources: DMA, IAB, World Press Trends

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Digital realities (Global)Print is going to fund our industry in the near future

Digital accounts for 10% of revenue in the USA. It accounts for 29% of revenues at Schibsted Sweden.

Source. PriceWaterhouseCoopers

{ Mobile is 1% of digital

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The factsOur revenues are what we deserve…

Share of newspaper audience intensity: 1.8%Share of newspaper advertising revenue: 2.2%

Share of digital pages 1.1%Share of all digital revenues 2.8%

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WHY?WHY?

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WHY?WHY?

And what do we do about it?And what do we do about it?

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Reality

Challenge Serendipity Navigation Interface

Response Brand values Interaction Return

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In conclusion

Our challenge lies in the intensity of our conection with our stakeholders – consumers, communicators

This conundrum is the cause of consumer and communication revenue shortfalls

The serendipity of our medium is not translating from the page to the digital environment (despite our affinity)

We require a global investment in the cause and solution for this conundrum

The solution to the conudrum is the path to future growth and prosperity.

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JimJim جيم 吉姆 ि�जम ג 'ים ジム 짐 Джим

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What the future of newspapers means for the future of printing.What the future of newspapers means for the future of printing.

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Content factors

Need to do less better (not less economically) Consumers will welcome a smaller, better package They only read a quarter of what we print

Greater emphasis on personal demand, driven by: Time pressure Conscious of the environment

Format shifts: Ever smaller Newzine concepts

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Market factors

Volumes reducing geometrically Copies produced Advertising revenue (translated into volume reductions)

Reduction in publishing frequency Cancellation of Saturday Shift from daily to weekly

Demonstrable value case Potential driver of print to digital

Greater localisation

Tailoring Combined with alternative distribution models. Decline in insert demand

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Technology factors

“Traditional” Waste minimisation More efficient short runs Reduced copy cost Improved “life-time-value” of press Adoption of “Three round” printing

Digital Reduced operating cost per copy Reduced capital cost Improving speeds and volumes

Alternative Merging of newspaper and magazine concepts

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Big picture will be smaller

More A4 or even A5 products.

Adoption of “three-round” printing increases format flexibility

Reduced paginations and frequency releases press capacity in the short-term and alters equipment requirement in the long term

Smaller volumes, paginations, print runs, formats

Shift to Newzine concept will radically alter editorial thinking

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Consequences

Demand for greater flexibility from traditional presses: Current – Three-round, tailoring and finishing Acquisition/outsourcing – Flexibility in frequency, and format

Merging newspaper/magazine concepts Greater use of digital printing Shift from mail-room to press technologies