christ riess

© 2010 WAN-IFRA

Christoph Riess

CEO, WAN-IFRA

Christoph.riess@wan-ifra.org

Ukrainian Newspaper Congress

Kiev 29.10.2010

The future of media businessUkraine a Land of Opportunities

© 2010 WAN-IFRA, 2

Ukraine economic and demografic situation

Media consumption:

How many people are reading news in the print, on-line, on the mobile?

Advertising expenditure by media

Where is the money going ?

Newspaper revenue

Is it content paid, advertising paid or digital revenue ?

Internet versus mobile phone

© 2010 WAN-IFRA, 3

The External Crisis – End of 2009

Real GDP Growth 2009

-20% -10% 0%

-18%

-15.1%

-15%

-14.1%

-7.9%

-7.1%

-6.3%

-4.9%

-4.7%

-3.6%

-3%

-2.4%

-2.2%

Latvia

Ukraine

Lettland

Estonia

Russia

Romania

Hungary

United Kingdom

Slovakia

Austria

Belgium

United States

France

Source: CIA

WIkipedia © 2010 WAN-IFRA, 4

© 2010 WAN-IFRA, 5

2006 2007 2008 2009

All Newspapers 22 42.8 39.5 34.2

Magazines 14 18.5 17.5 15.4

Radio 81 56.9 48.4 49

Television 145 88.5 85.9 88.3

Internet 7 10 16.4 21.2

Source: TNS Ukraine

Media consumption Ukraine 2009 (minutes per day)

© 2010 WAN-IFRA, 6Global Daily Newspaper Reach Paid and Free Circ. - WPT Global- Pop World Bank RPC - WPT

25.2%

Ukraine

Global reach daily newspapers

PAID DAILIES, TOP 20 COUNTRIES BY POPULATION REACH (%)

Rank CountryAll adults

%

1 Iceland 96

2 Japan 91.5

3 Norway 82

4 Sweden 82

5 Switzerland 81.7

6 Finland 80

7 Hong Kong 79.6

8 Singapore 78.3

9 Luxembourg 77.6

10 Austria 75

11 Denmark 74

12 Canada 73

13 Germany 71.4

14 Netherlands, The 68.1

15 Estonia 62.6

16 Israel 60.5

17 Korea, Republic of 58.5

18 Ireland 56.4

19 Malaysia 56

20 Poland 55.3

Ukraine 25.2

Paid dailies, Top 20 countries by population reach (%)

© 2010 WAN-IFRA, 8ZENITHOPTIMEDIA JULY 10

Global advertising expenditure by media (USD million)

Advertising expenditure per media (USD million)

Ukraine

© 2010 WAN-IFRA, 9Source: Ukrainian adCoalition, Cortex, ZenithOptimedia

© 2010 WAN-IFRA, 10

Global Advertising share trend ‘ Big Three’

2009

ZENITHOPTIMEDIA JULY 10

© 2010 WAN-IFRA, 11

Advertising share Ukraine „Big Three“ (in percent)

Source: Ukrainian adCoalition, Cortex, ZenithOptimedia

© 2010 WAN-IFRA, 12

Global newspaper revenue by source (USD millions)

PRINT PRINT ADVERTISINGPRINT PRINT ADVERTISING CIRCULATION REVENUE CIRCULATION REVENUE DIGITAL ADVERTISINGDIGITAL ADVERTISING

PRICEWATERHOUSECOOPERS GMEO 2005-2014, US $ MILLIONS

Content paid model digital advertisingContent paid model digital advertising

© 2010 WAN-IFRA, 13

Ukraine Newspaper revenue by source

PRINT ADVERTISINGPRINT ADVERTISINGPRINT ADVERTISINGPRINT ADVERTISING CIRCULATION REVENUE CIRCULATION REVENUE CIRCULATION REVENUE CIRCULATION REVENUE DIGITAL ADVERTISINGDIGITAL ADVERTISINGDIGITAL ADVERTISINGDIGITAL ADVERTISING

Ukrainian Media Holding, Ria Media Corp., ZenithOptimedia

Digital 4.6%

Print 95.4 %

2012

© 2010 WAN-IFRA, 14

Type of newspaper sales

Source: UAPP

Mobile vs internet opportunity +/-

15

Lots of them and they are happy to pay for content! But no ads please (maybe)

Lots of them and they are happy to pay for content! But no ads please (maybe)

Established ad model but users will not (so far) –pay for content. Search engines dominate

Established ad model but users will not (so far) –pay for content. Search engines dominate

MOBILEMOBILE PC / InternetPC / Internet

© 2010 WAN-IFRA, 15

© 2010 WAN-IFRA, 16WPT 2010

WPT 2010

Penetration (%)

Mobile vs Internet Penetration

© 2010 WAN-IFRA, 17

Laptop & Mobile Tablet E-Reader

? ?Netbook

e-book reader

© 2010 WAN-IFRA, 18

Mobile Content – Showing Signs of Fullfilling Early Promise

Economical situation and demographic background an opportunity?

Good educational base

Newspaper reach on average

Advertising for newspapers and Internet still to be developed

Newspaper subscriptions increase

Mobile and Internet penetration ready for opportunities

© 2010 WAN-IFRA, 20

The future of media businessUkraine a Land of Opportunities

© 2010 WAN-IFRA

Thank you for your attention

Christoph Riess

CEO, WAN-IFRA

Christoph.riess@wan-ifra.org