When every trend is against you - the print media

Alan and I work with just about all industries that are facing convergence, from broadband internet to mobile telecoms to media and advertising, and other related parts like banking and commerce. We find it strange that so many inside the print media are still hiding their heads in the sand. The truth is out there, and all of the evidence points to a brutal fact: EVERY trend is going against the print industry. Look at this:

There are less readers. They are willing to pay less for magazines, newspapers and books. The total revenues have been dropping for the industry. But there are more titles. So there is less money to share for any one title. Now more and more free titles are appearing, putting even more pressure on the cover prices. As readers disapper, the advertisers are abandoning print. Advertising revenues have continued to drop. Worst of all, the young people are voting with their dollars, simply not buying to read anymore. They are on the web, inside games and on their mobile phones.

Every study on every aspect of the print media tells the same story. Readers prefer digital sources. Loyal readers average age is dramatically growing and with many titles is nearing retirement age. What was once suggested that TV would be the end of reading newspapers and magazines, today that reality is coming but it is more interactive video on the internet, videogaming and mobile phones that is taking the majority of younger readers' interests.

We've blogged about many periodicals suffering with these trends. This week's the Economist (Feb 25, 2006) reports of yet another paper suffering. This time it is the National Enquirer in the USA, which has seen readership drop 20% in two years. Yet so many print media executives that we meet and talk with, seem to be refusing to face the facts. While not a newsprint representative, in this weekend's Financial Times (25 Feb, 2006) they quote the map publishing company, A-Z Map Company's director, Norman Dennison, saying, "People will always need printed books. I'm not trying to stand in the way of progress..." - come on. People will always need printed books? The proof is out there. Older generations may love print, but the younger generations are clearly showing they don't need printed newspapers, printed magazines, nor printed books.

How can senior managements at so many publishers be so blind. I could understand if it was only a regional trend (for example witnessed only in Japan and Korea, or only in Scandinavia). Or if it was only a partial trend - such as readers shrinking but revenues growing - or have some balancing trends, if sales prices are going down but advertising revenues are growing. Or if the trend had only started and we had the first year of data. But no. EVERY trend goes against print media. Has been for years already. What is wrong with this industry, don't they get it?

So what do we say? Engage your readers, of course (plenty of advice and case studies in our book and on this blogsite). Get onto TV, it is no longer prohibitive, as we saw for example Audi launching its own TV channel, or when British pop magazine Smash Hits finished its print run, it still maintains a popular TV show (and web presense).  On TV, make sure you go interactive with your audience.

More importantly, get into truly interactive media - videogaming, virtual worlds, online internet and mobile phones. Use your image and brand with your readership now, while you still have the readers, and migrate with them to the digital world. If they are young, get into their videogaming and/or virtual worlds. We've discussed examples from massively multiplayer online games like World of Warcraft to virtual room environments like Habbo Hotel. If they are older, get into their discussion groups and blogsites on the web. Does your paper have a blogsite. Not a website, a proper blogsite which includes RSS feeds and fully accessable links into and out of the site? Set up wikis, podcasts, reader participation. Get seriously into reader-participation! Citizen journalism. Study the Ohmy News case from Korea. Every print media executive should know Ohmy News thoroughly.

And then, when prioritizing your emphasis, remember this. TV executives are now saying mobile phones are the future of TV. Videogaming executives are now saying the future of videogaming is mobile phones. The internet? Already 25% of all internet access is via mobile phone: the world's largest internet service provider is a mobile operator (NTT DoCoMo's iMode in Japan) with more revenues and more profits than any fixed internet service provider including broadband. Virtual worlds? CyWorld in Japan has 30% of the total Korean population accessing the virtual world via their mobile phones. So if you really want to understand young readers, where are they now, and where will they be even more in the future, make sure you have a mobile phone service strategy. Bring your paper and readership to the mobile future, as long as your company still is alive.

Every trend goes against the print media.

Comments

[alfie]

Stephen at PRblogger.com has some stats he recently compiled on declining UK circulation and readership figures for UK nationals that certainly shows the decline: http://www.prblogger.com/2006/02/the-nationals-year-on-year-circulations/

[alan moore]

Thanks Alfie,

That's very useful. I don't suppose yoou have any stats for regional newspapers?

[alfie]

I don't personally but I'll ask Stephen if he's compiled those too.

[Stephen Davies]

Hi, I don't have the stats for the regionals as of yet, but I am trying to find them. When I do I'll let you know.

However, the regionals are in a **heavy** decline. More so than the nationals. No one wants to read local news anymore and that's why a lot of regionals are turning into free sheets full of advertising.

Thanks,

[Tomi Ahonen]

Hi Alfie

Thank you from me as well. Very good to know...

Tomi :-)

[JC Allen]

Very interesting article. I've just been taken on at a print publishing house to help look at ways in which they can move their business online and basically retain and, in most cases, win back their readership. What I have noticed is that print publishers have traditionally seen relying on reader participation or interaction as a weakness - as if it somehow signals a lack of authoritative content. It strikes me as unduly paranoid and publishers seem unable to adapt due to not properly distinguishing online production processes from the traditional production processes of their print predecessor. Management still does not see or "get" the fact that online is very much a two way street and so audience participation tends to remain restricted to playpens (forums) and not integrated into an over-arching ethos for generating content (and crucially feedback). Readership is sort of reduced to being not too disimilar to canned laughter in a bad comedy show.

In my opinion, (and inspired by what you've said) bringing the focus to co-ordinating interpersonal transactions within the communities they intend to represent seems to be the obvious way to foster brand loyalty. After all if I discover one of my articles, opinion pieces or letter to the editors is printed in my favourite paper, the last thing I think is "oh gosh, they must have had nothing better to print"; and the first thing I do is go out, buy that paper, and tell all my friends about it!

[Tomi Ahonen]

Hi JC

You are totally right ! Yes that was exactly what we wrote in our book, and we've been harping on it throughtout this blogsite since last March ha-ha...

If you'd like some good examples and cases and numbers and testimonials to help prove your case to the management there with the print publishers, please scroll back through the archives of this blogsite, you'll find a lot of stories that relate to print media and its related advertising and distribution etc. And throughout it all, Alan and I have continuously urged the industry to take onboard the concepts of user participation, to ENGAGE their readership, to make them part of the periodical's experience, to help build it, not only hand over the money to buy it.

You are right, it is a total mindset shift, and it has to happen for them to survive. Good luck. Please visit us and let us know how it is going. We'd also love to chat with you offline if you'd like

Ha-ha, and as a personal plug - you might consider buying a copy of the book Communities Dominate Brands, highlight a few passages and give it to the bosses over there, to help you win them over...

Cheers, or like we way with Alan: Dominate !

Tomi Ahonen :-)

[JC Allen]

Hi Tomi

Thanks a lot for the feedback - an awesome welcome to this site. Great to hear that I may be on the right track!

Will definitely grab a copy of communities dominate - sounds right up my street. Anything that reinforces my case, I really need - so your offers of help are much appreciated and I will let you know of any developments. It's a really exciting time to be involved in this industry!

Looking forward to reading more.

Kiitos :-)

JC

[alan moore]

Ho there JC.

I have just been reading through the comments. I have been a non-participant over the last few days as I was in Barcelona talking at the Spanish marketing societys 80th Anniversary.

I totally support Tomi's points of view and will also say that we have been thinking and talking to a number of print publishers about implementing a digital strategy buillt around our knowledge of communities, the changing nature of peoples desire to participate and interact and how this then affects how a newspaper would engage its readers and rethink its business model.

If there is anyway we can help you, we would be most certainly be interested to do so.

Cheers

Alan

[JC Allen]

Just thought you might be interested in a recent blog post by mike butcher. (http://mbites.com/rusbridger)

Had my meeting with the board. Thanks for your feedback before as it really inspired me to press on with getting the message out there. Wrote a short feature for them stressing the importance of re-adressing their relationships to their commmunity and illustrating how this strategy is in line with their business goals. So now the higher echelons seem to be opening up to the grander ideas but as always in these things you have to stay 'on topic' so progress is gradual. That said, response on the ground has been overwhelmingly positive with at least three colleagues taking up blogging and experimenting with social media concepts in the last two weeks.

And, in other news, i'm waiting for your book in the post!

[JC Allen]

BTW Netimperative version of same article here: http://www.netimperative.com/2006/03/17/guardian/view

[alan moore]

Dear JC,

Glad the thoughts have in anyway been of some value.

I certainly shall go and have a look at the post you have recommended.

Lastly, not sure where you are based, but will be in the US at the end of April. In california from LA to SF. Would be happy to hook up if you wanted. Would be happy to personally sign the book.

All the best

Alan

[dragonball gold]

BTW Netimperative version of same article here: http://www.netimperative.com/2006/03/17/guardian/view

[Henry Peise]

Apple's launch of the iPhone 4 white has seen the greatest excitement for a new phone ever, with HD video recording, a super high-res screen and ridiculously slim dimensions, it's not hard to see why its so popular in the world.