Presentation by Caroline H. Little, President and CEO, Newspaper Association of America, USA, given at the 66th World Newspaper Congress on Wednesday, 11 June 2014, during the closing session explaining the current U.S. Media Market situation.

1. Newspaper Media in 2014Newspaper Media in 2014Newspaper Media 2014Newspaper Media 2014

2. Presentation ThemesPresentation Themes
 REALIGNING THE REVENUE STREAMREALIGNING THE REVENUE STREAM
 AUDIENCE GROWTHAUDIENCE GROWTH
 INNOVATIONINNOVATION

3. Newspaper Media: Changing Revenue StreamNewspaper Media: Changing Revenue Stream

4. 2013 Revenue Highlights: A $37.6 Billion Industry2013 Revenue Highlights: A $37.6 Billion Industry
 Circulation revenue rose for 2nd
consecutive
year to $10.9 billion
 Revenue from digital channels — advertising,
circulation, digital marketing services, and
other — rose 5.8% and accounted for 19% of
all advertising revenue and 12% of total
industry revenue.
 Pure-play (digital only) advertising rose 14%.
 Mobile advertising revenue jumped 77%.
 Traditional advertising in print (daily &
Sunday) represents less than half (46%) of
total newspaper media revenue.

5. The Digital AudienceThe Digital Audience

6.  90% of American adults have a
cell phone
 63% of American adults have a
smartphone
 42% of American adults own a
tablet computer
 32% of American adults own an
e-reader
Explosive Growth in Mobile DevicesExplosive Growth in Mobile Devices
Source: Pew Research, 2014

7. Mobile ManiaMobile Mania
 75% of Americans bring
their phones to the
bathroom
 67% of cell owners find
themselves checking their
phone for messages, alerts,
or calls — even when they
don’t notice their phone
ringing or vibrating
 44% of cell owners have
slept with their phone next
to their bed – not to miss
any calls, text messages, or
updates
 Mobile now accounts for
20% of all media
consumption time

8. Surge in SmartphonesSurge in Smartphones
Source: Reynolds Journalism Institute, May 2014

9. Mobile Driving News ConsumptionMobile Driving News Consumption
Source: Reuters Institute Digital News Report 2013

10. News Apps are Popular in U.S.News Apps are Popular in U.S.
Avg. Number, News Apps Used Weekly
 1.8 overall
 Men 2.0, Women 1.5
 By Age:
 18 – 34: 1.6
 35 – 54: 1.8
 55 +: 1.9
 Range:
 M 55+: 2.2
 W 18 – 34: 1.2

11. U.S. Newspaper Digital AudienceU.S. Newspaper Digital Audience
 161 million UVs, March 2014
 Grew 19% from April 2013
 Mobile-Exclusive Digital Users:
 More than 46 million UVs
 Grew by 86%
 Comprises 29% of all UVs

12. All Age Groups EngagedAll Age Groups Engaged
Source: comScore

13. Survey: 70% Charge for Digital ContentSurvey: 70% Charge for Digital Content
 And 60% of those who charge use a metered approach
Source: Reynolds Journalism Institute, March 2014

14. The Print AudienceThe Print Audience

15. Print: Large Audience & RevenuePrint: Large Audience & Revenue
15
 79 million read on average weekday
 94 million read on average Sunday
 137 million in the past week
 60% college graduates read a print
newspaper during an average week, 62% of
those age 35 or older, and 64% of those with
household income $250,000 or more.
 More than half (53%) of adult Twitter users
in a typical month read a newspaper in print
during an average week.
 $17.3 billion in advertising revenue 2013

16. Innovation: Wave of Digital Agency Services
 Gannett: G/O Digital
 McClatchy: impressLOCAL
 Morris Communications:
Main Street Digital
 Gatehouse Media: Propel
Marketing
 Dallas Morning News: 508
Digital & Speakeasy

17. Innovation: Niche in Streaming Radio
 Pittsburgh Tribune-Review,
TribRadio
 Sports talk radio focused on
local teams
 Broadcasts 9 a.m. to 8 p.m.
every day
 Live remote broadcasts
 Professional announcers and
newspaper sports writers
 Launched in 2011, now
profitable

18. Innovation: Local Cooking Site

19. Innovation: Content PartnersInnovation: Content Partners
ProgramProgram

20. The Future: What Do We See?The Future: What Do We See?

21. Navigating Through the Media MultiverseNavigating Through the Media Multiverse

22.  TRADITIONAL PRINT
 Realign the Ad vs. Consumer ratio
 Niche publications
Media Multiverse: Multi-Platform Revenue StreamMedia Multiverse: Multi-Platform Revenue Stream

23.  TRADITIONAL PRINT
 Rebalance the Ad vs. Consumer ratio
 Niche publications
 DIGITAL
 Paid content as well as advertising
 Mobile, social, online video, search
Media Multiverse: Multi-Platform Revenue StreamMedia Multiverse: Multi-Platform Revenue Stream

24.  TRADITIONAL PRINT
 Rebalance the Ad vs. Consumer ratio
 Niche publications
 DIGITAL
 Paid content as well as advertising
 Mobile, social, online video, search
 NON-TRADITIONAL REVENUE
 Digital agency/marketing services
 Event marketing
 E-Commerce/transactions
 Direct Marketing
Media Multiverse: Multi-Platform Revenue StreamMedia Multiverse: Multi-Platform Revenue Stream

25. U.S. Newspaper Media TodayU.S. Newspaper Media Today
25

27. Newspaper Media in 2014Newspaper Media in 2014Newspaper Media 2014Newspaper Media 2014