Print is under severe pressure around the globe, and Asia is no exception. Falling ad revenue, the digital shift and declining reader numbers have hit the industry hard.The degree of this has become even more apparent during the current financial recession. But not all markets in Asia have been impacted in the same way; some of them are even showing growth. To get a feel for the state of print in the region, we asked media buyers in six countries to give an overview of print media in their respective markets.
CHINA
Mark Heap
Managing Director
PHD China
China’s newspaper landscape has changed quite significantly with the increased access to digital and portable media. Sixty-five per cent of
people in urban China claimed to have read a newspaper yesterday — down from 71 per cent five years ago. For people under 30 years of age,there has been a 12 per cent decline in daily newspaper reading in the last five years.The combined readership of the top 10 newspapers has fallen 17 per cent in the last two years. However, with most newspapers being state-owned, they will always serve a purpose and are buffered from the commercial realities that many overseas publications have faced.
Newsstands in China are swelling, and new magazine titles and advertisers seem to like them, as the monitored adspend behind consumer magazines is certainly robust — showing increases even in this tough year. Women’s titles like U+and Feminaare growing in popularity and are appealing especially in second and third tier markets, where the monthly glossies aren’t as strong.At just 3 Rmb (44 US cents) per issue, there’s an obvious economic factor at play, but this couldalso reflect a growing trend for shorter, smaller,more frequent formats.
Even though people are spending more time online, magazines will continue to play a very valuable role in the media mix as they offer unique opportunities to engage consumers in a very open minded, relaxed and responsive mindset. Our own proprietary research also indicates that for fashion, jewellery and cosmetics purchasers, magazines are still considered the most natural information source.
SINGAPORE
Chloe Neo
Business Director
OMD Singapore
Singapore is a city-state with a high literacy rate.Therefore, the demand for high-quality print publications has increased over time. Today, the country has more than 100 print titles across various genres such as health, food, sports and fashion.
New developments occur in the face of emerging technologies such as the internet, mobile and social networks. Currently all major dailies and magazines have online versions as this platform helps to expand reach and engage readers. But even though people are spending more time online, print will not be obsolete.We can,however, expect some form of market consolidation looking at the development
and proliferation of players and titles. News dailies such as The Straits Times will continue to perform, as they have established a strong and consistent readership base over the years and remain the most widely read.Titles that focus on a certain niche have comparative advantage as well, such as My Paper,which is a bilingual publication, and TODAY, a well-circulated commuter paper.
The usage and role of print varies, depending on the communication objectives and target consumer profile. In Singapore, news dailies are key for reach and as effective conduits for tactical campaigns. Magazines, on the other hand, provide the right target platform and context to build consumer affinity and connection.
As with most countries, there isn’t a ‘one size fits all’ formula. However, advertisers are increasingly looking at platforms to build branded experience. Print backed by dominant media companies have added advantage as there is credibility and larger players have the ability to build synergies across platforms such as online, mobile, events and even outdoor.
THAILAND
Paul Gibbs
Leader
Mindshare Thailand
The latest Nielsen figures show that spending in magazines and newspapers in Thailand is down 13 per cent year on year,although broadly readership levels are been maintained. In terms of magazines, international titles that are a blend of local plus international content are doing well. However, other local titles may be struggling as discretionary spending is coming under pressure in this current economic climate.
People’s appetite for ‘news’ is still there,though,especially as it relates to the current political and economic scene, so newspapers such as Thai Rath and Daily News will continue to dominate.
There could,however,be a problem with younger audiences for magazines, as all of the things of interest to teens in terms of fashion, gadgets and music are readily accessible on the web.
For media buyers,we need to understand the role of print for different advertisers. In some cases, print is a ‘nice to have’ channel and as budgets have tightened during the year these channels can easily fall out of a brands’ communication plan.
In other cases it is still a ‘must have’ channel for categories such as automotive, real estate and luxury goods, although the business performance of all of these categories has come under pressure during 2009.
At the moment print owners’ greatest asset is their content, so they need to be looking at moving beyond their existing platforms. Lots of print owners are now developing digital capabilities, while magazines that have historically done co-branded activation and events with advertisers are moving into the more lifestyle and experiential arena.
MALAYSIA
Paul Corrigan
CEO
GroupM Malaysia
It has been a tough year for the traditionally dominant print sector in Malaysia.Revenues have been hit not only in display advertising but also in the lucrative classifieds. Couple this with an increasing tendency for younger readers to consume online alternatives and the Malaysian print sector is undergoing a period of change.
Some titles, such as Harian Metro and China Press, have driven circulation growth by pursuing more ‘populist’ or light editorial directions and as a result have seen their ad revenues less affected than others.
The Sun also increased its circulation, but has not yet seen the same healthy advertising returns owing to an aggressive new pricing policy that has not gone down well with buyers this year.
Beyond the obvious issues of the general state of the economy and the need to pass recent increases in raw material costs on to the advertiser,the most important factor in this decline is the readiness of younger Malaysians to seek news online.
Vernacular titles possibly have closer ties to the communities they serve, so English-language titles in particular will have to find a way of harnessing their online properties to retain readers and monetise their product.
Although print still dominates adspend in Malaysia (especially for clients with smaller budgets or a tactical focus),the medium needs to take a
long hard look at itself, while also hastening to harness modern technology. Their product is news,not newspapers. If they can master the opportunities that digital offers for bringing fast news to their customers and can transfer online the traditional strength of considered and in-depth commentary on that news, then there is a bright future.
INDIA
Pavan Chandra
MD and Chief Strategy Officer
ZenithOptimedia India
Not only is consumerism fuelling the desire for international brands, it is also driving the demand for international print titles. LVMH can’t do
without Vogue and Stuff needs all the new gadgets that Apple and HTC can throw at it.
The recent entry of Forbes into the country marks a turning point in journalism where the Government of India has allowed a foreign news magazine to be printed and circulated in the country. In addition, for the vast majority of the Indian population, print media are falling over each other to reach these hinterlands. In some of these areas, readership levels are as low as 15 per cent,providing a tremendous
opportunity for growth.
According to forecasts released by ZenithOptimedia in July 2009, print advertising in India has been growing at a pace of 17 to 20 per cent per annum between 2005 and 2008 and is expected to grow up to 16 per cent for the next three years in contrast to the more mature markets that are witnessing a sharp decline in advertising revenues,circulation and readership.
The top four categories that have contributed to print revenues for the past three years have been educational institutions,retailers,real estate and automotive.Social advertising is a category that has leaped to the top spot indicating the role that this medium is playing in the growth of India.
There are many areas in India where literacy levels are less than 65 per cent and press reach is in the 20s. It is these towns that will ensure that the potential of press in India remains strong and vibrant.What better way to segment this land of one billion people but by bringing out content to cater to it’s increasingly specialist needs? What better way than to talk to people in their own language? About 46 per cent of the advertising spend is accounted for by print and this mix is not changing in a hurry.
JAPAN
Koichiro Sano
Group Director, Connection Point
Development Division, UM Japan
Billings for the top nine agencies in Japan for January to May, 2009 were down 74.6 per cent year on year for newspapers and 69.5 per cent for magazines. It can be said, therefore, that the situation for print in the market is critical. The re-adjustment of ad expenses by automobile manufacturers and fashion and cosmetics companies, which have for a long time been the mainstays in Japan,has affected the industry . Lifestyle magazines and luxury magazines especially are experiencing some difficulty.
On the positive side, casual female fashion magazines are growing due to the ‘fast fashion’ uptrend in Japan. Clients in this industry have been sharper than ever in terms of capturing their target. Free papers are also on the increase.
In terms of the future, the market will be greatly influenced by how technology evolves and also by the economic circumstances.
Content development,both in terms of competition with rival print media owners and content offerings across other media will be much more active. Print media owners will likely seek new opportunities linked with their clients’ product sales or consumer service.
By maximising the strength of their content development abilities, print media can be a ‘campaign platform’ to accelerate broadening and deepening the campaign. Print media has the unique ability to excavate trends and influencers. It also takes on the role of adding trustworthiness to the communications plan, which is difficult to deliver the internet or other media.
