The new web advertising

NEWSPAPERS : THE END…

SERIOUSLY ?

Dominique DELPORT Chairman Havas Media France & Havas Media UK

Global Managing Director Havas Media Group

STOP THINKING NEWSPAPERS ARE DEAD

… ESPECIALLY THE JOURNALISTS!

Source : Ross Dawson, futureexploitation.net

NEWSPAPER INDUSTRY FACING PROFOUND CHANGES

DIGITALIZATION AND MONETIZATION

CONTENT

DIVERSIFICATION OF FUNDING SOURCES

LOWER STRUCTURE COSTS

FOCUS ON OFFER AND QUALITY CONTENT

AUDIENCE & GLOBAL BRAND

REBUILD SHAREHOLDING

1BN+ PEOPLE INTERCONNECTED THROUGH SOCIAL & MOBILE PLATFORMS AUDIENCES NOW THE MEDIA

YOUR READERS NOW THE MEDIA

WE LIVE IN AN ORGANIC WORLD

WE ARE ALL IDENTIFIED BY OUR IP ADDRESS, GEOLOCATION

AND REACHABLE 24/7 PER MILI-SEC GEOGRAPHY AND TIME ABOLISHED

WE LIVE IN AN ORGANIC WORLD

VILLAGES ARE GLOBAL

WE LIVE IN AN ORGANIC WORLD

CONTENT IS FLUID & CIRCULATES FREELY

WE LIVE IN AN ORGANIC WORLD

5 REASONS TO EXPECT A BETTER FUTURE

01THE RISE OF THE

GLOBAL MIDDLE CLASS

MIDDLE CLASS PROJECTED GROWTH01

Source : OECD, Jana, 2013

EMERGING MARKETS HAVE IMPORTANT SPENDING BUDGET

Source : OECD, Jana, 2013

01

RISE OF MIDDLE CLASS IN CONSUMPTION01

Source : OECD, 2013

CHINA UPPER MIDDLE CLASS CONSUMERS WILL TRANSFORM THE NATION

๏ China’s new middle class is divided into different generations, the most striking of which we call Generation 2 (G2) ๏ It comprised nearly 200 million consumers in 2012 and accounted for 15 percent of urban consumption and in ten years’ time,

their share of urban consumer demand should more than double, to 35 percent

01

Source : The magnitude of China’s middle-class, McKinsey & Company, 2013

AFRICA’S GROWING MIDDLE CLASS

๏355 million (34% of the African population) in 2010 to 1.1 billion (42% of the African population) in 2060 ๏Today, Africa is the most dynamic continent with a mobile penetration rate of 100%

01

Source : Canback Global Income Distribution Database, Mckinsey Global Institute

AFRICA : MOBILE-FIRST CONTINENT IN 2020

Source : Courrier International, October 2013

๏ According to World Bank, between 2000 and 2012, number of mobile phone subscriptions spent in Africa - 137 to nearly 650 million, as in USA and Europe

๏ Used mobile banking terminals or Internet access, promoting economic and agricultural development

๏ Orange Finance : 8m subscriptions

๏ Kenya : M-Pesa telecoms 14.6m active users in March 2012 (3 out of 5 Kenyans) with more than 650m transactions per month

01

02MOBILE FIRST

MOBILE1ST

SCREENTV 2ND

SCREEN

02

Source : Millward Brown, 2014

freemium model : 10 free articles per month unlimited content : 7 for $99 per month

Morning Briefing & Our Picks apps A handpicked feed of stories

02

NY TIMES NOW : 2 APRIL 2014

BECOME MOBILE FIRST

NY TIMES OPINION : 4 JUNE 2014Unlimited access to the NYT Opinion App +

NYTO section on NYTimes.com 99¢ for the first 12 weeks & $1.50/week thereafter

ALL SOCIAL PLATFORMS BECOME MOBILE FIRST 02

Source : Comscore, * December 2013, Age 18+

ONLINE NEWSPAPER READERS GROWING RAPIDLY

Differences in digital reach across the newspaper titles. Half of The Guardian’s and The DailyTelegraph readers are now based purely online whereas The Times has just 3% digital only

reach thanks to its pay wall.

DIGITAL

02

% who read print only

% who read digital only

Source : NRS PADD period July 2011 to June 2012

43% 54% 54%

81% 91% 91%

PRESS ONLINE : THE END OF GOOGLE DEPENDENCE  02

Source : Buzzfeed 2013

The Atlantic (U.S. magazine) doubles the size of its writing since 2009 and making money since 2010. In five years, through social, its online traffic jumped 80% with more than 25 million unique visitors per month without compromise quality of content. The reasons for successes :

02 PRESS ONLINE : THE END OF GOOGLE DEPENDENCE 

๏ recruit new talents ๏ work like a start-up, lean production ๏ know your audience ๏ mobile first

๏ use data and social media ๏ organize events and training ๏ develop brands ๏ create video content

Source : The Atlantic president M. Scott Havens, SXSW 2013

02 PRESS ONLINE : THE END OF GOOGLE DEPENDENCE 

“It’s become very, very clear to me that digital trumps print, and that pure digital, without any legacy costs, massively trumps print.” David G. Bradley, the owner of the Atlantic Media Company

Source : The Atlantic president M. Scott Havens, SXSW 2013

MAGAZINES : INCREASING POTENTIAL FOR REVENUE 02

Source : Veronis Suhler Stevenson Communication Industry Forecast 25th Edition, 2011-2015

Digital and mobile revenues include spending on the title-related online and mobile extensions of print publications. It includes advertising and content spending, such as subscriptions, apps and online reviews.

SERVICE DELIVERED - BEYOND PAPER02

TV GUIDE MOVED TO DIGITAL PROGRAM SCHEDULE

TVGuide.com attracts some 16.5 million monthly visitors and the smartphone and tablet apps reach about 2.5 million users

Source : CBS 2013

02 SERVICE DELIVERED - BEYOND PAPER

VIRTUAL TV ZAPPER

Source : TV GUIDE 2013

02 INCOME SOURCES EVOLVING

FREEMIUM A combination of free and premium contents. The most popular

business model on Internet. Several varieties with a similar base : a limited part and a full access part, fees for access to

both.

SUBSCRIPTION Provides access to an offer or benefit (yearly/monthly) with regular payment period. This system has been used by press

and mobiles but today is increasingly digital.

MICROTRANSACTION The principle : payments are small sums to promote repetition

and impulse buying. Very common in image/ringtone sales and many apps/mobile games.

CLOUD COMPUTING The principle : the customer pays for time spent or number of

logins, the amount of downloads, e.g pay per minute with Skype credit or Paypal fee for each transaction.

AFFILIATION A type of performance-based fidelity marketing where a business rewards one or more affiliates for each visitor or

customer that participates.

ONLINE ADVERTISING First source of income for websites.

But increasingly difficult to make it a single source of income, because it requires very high traffic.

02 TRANSITION FROM A NEWSPAPER TO A DIGITAL PUBLICATION

Source : NYT report, March 2014

02 NYT PAYWALL SUCCESS

Total revenues increased 2.6 percent in the first quarter of 2014, with advertising revenues up 3.4 percent and circulation revenues up 2.1 percent. The Company added more net digital subscribers in the first quarter of 2014 than in any quarter in

2013. The total number of paid digital-only subscribers at the end of the first quarter was approximately 799,000, an increase of 39,000 compared with the end of the fourth quarter of 2013.

Source : NYT investors, April 2014

TRUST IN DIGITAL : PRESS ONLINE INCREASE

La Presse newspaper (Canada) launched La Presse+, a free iPad app $40-million bet on a new tablet platform that it hopes will replace its newspaper over three years.

02

03MOST

POPULAR WRITING

NEW SUPPORT, NEW CONTENT : ADJUSTING THE EDITORIAL PURPOSE

LONG KNOW-HOW POLLSTER & EDITOR

THINK VIDEO YOUR REPORTERS ARE YOUR MEDIA

YOUR READERS HAVE TALENT EVENT YOUR PROGRAMS

03

DEVELOPING STRONG AND SINGULAR EDITORIALS : DIFFERENT KNOW-HOW03

CREATE NOVELIZATION WITH SOLID AND CONSISTENT CONTENT

CONFIRMING EDITORIAL AMBITIONS : POLLSTER & LAYOUT PERSON03

THINK VIDEO03

YOUR REPORTERS ARE YOUR MEDIA03READER SUBSCRIPTIONS TO SPECIFIC JOURNALISTSJOURNALIST AS THE BRAND

03 YOUR REPORTERS ARE YOUR MEDIA

A NEW GENERATION OF EXPERTS TO EXPAND YOUR ECOSYSTEM

03 YOUR READERS HAVE TALENT

03

400 bloggers - correspondents are paid by click

YOUR READERS HAVE TALENT

Source : Forbes, 2014

03 YOUR READERS HAVE TALENT

Source : Forbes, 2014

EVENT YOUR PROGRAMS03CULTURE SECTION IN THE UK'S SUNDAY TIMES PROMOTED BY PULLING TOGETHER SIX ICONIC

MOMENTS CAPTURED IN SINGLE SHOT MOMENTS IN 50 SECONDS

04DATA EXPLOITATION DRIVING BUSINESS

WE LIVE IN A BIG DATA WORLD04

04 WE LIVE IN A BIG DATA WORLD

WE LIVE IN AN ALGORITHMS WORLD04

MARKETING

THE GUARDIAN, 1ST worldwide media who have launched data-journalism in 2009

04 NEW WRITING FORMS : THE DATA-JOURNALISM

MAKING SENSE OF DATA - ENGAGE READERS (CROWDSOURCING)

STAGING INFORMATION TO HIGHLIGHT KEY UNDERSTANDING

04 NEW WRITING FORMS : THE DATA-VISUALIZATION

04 NEW WRITING FORMS : THE DATA-VISUALIZATION

#MH360

14 segments 25% with ratio > 140%

04 NEW MARKETING OPPORTUNITY : KNOWLEDGE OF FINE-GRAINED TARGET

Selected Internet user profile characteristics reveal a very strong correlation with the sales conversion rate. This able marketers to build highly differentiated Web user segments, with best performance.

Source : Mckinsey, 2013

05INNOVATION &

AGILITY

05

A MAGAZINE BECOMES AN ECOSYSTEM MEDIA

THINK MILLENNIALS

05

YOUTH UNEMPLOYMENT IN SEVERAL EUROPEAN ECONOMIES IS DISTURBINGLY HIGH, WITH RATES OF UP TO 40% : WHOSE NEWSPAPER IS HELPING THEM ?

Source : Eurostat 2013

THINK MILLENNIALSEUROPEAN YOUTH UNEMPLOYMENT

INNOVATE TO SIMPLIFY THEIR READING

APPLICATION FOR CONVERTING AN ARTICLE INTO AUDIO

APPLICATION FOR CONVERTING AN ARTICLE INTO VIDEO IN 5 SECONDS

05

USE HIGH TECHNOLOGIES TO SHARE INSTANT INFORMATION05

PERSONALIZE & SOCIALIZE05

PERSONALIZE THE PAPER VERSION

Meganews, a newspaper vending machine with Internet access, prints in real-time a copy of the magazine you have selected. You purchase your magazine through screens on the kiosk and pay by credit card. It only takes two minutes from making your

purchase until a freshly printed magazine drops down the hatch. Consumers can choose from over 200 magazines and newspapers - reduces publishing and distribution costs. (Sweden)

05SELECT, SET, PRINT

PERSONALIZE YOUR OWN NEWSPAPER05FROM WEB TO PAPER

PaperLater lets you save the good stuff from around the web and enjoy it in a newspaper made just for you. When you find yourself on something you’d prefer to read in print, just press the ‘Save for PaperLater’ button in your browser. When you’ve got enough articles, hit print and we’ll automatically layout, print and ship you a newspaper. It’ll be on your doorstep in a few

days. It’s quick and easy and only £4.99. (UK)

NEWSPAPERS ARE USEFUL05UMBRELLA NEWSPAPER

It rains a lot in Ecuador and that could be a problem even for EXTRA newspaper, during rainy season we printed a special edition that comes with a plastic film on its cover making it waterproof. Compared to last year, same season, circulation

increased 12%.

MOSQUITO REPELLENT NEWSPAPER

Mawbima is one of Sri Lanka’s most popular newspapers has created the Mawbima Mosquito Repellent Paper to fight against Dengue,

printed using an ink containing a bug-repelling ingredient. Even with a bigger print run, the paper sold out by 10am - a sales increase of 30%

and the newspaper's readership increased by 300,000.

FOR ALL : UPGRADING WHAT WORKS 05!

DIGITAL NEWSPAPER HOLDER PIMPING A LO-FI SUPPORT WITH TECHNOLOGY - SHOWING PEOPLE THE VALUE OF REAL-TIME NEWS SERVICES WHILE READING THE PRINTED EDITION

(GERMANY)

05 FOR ALL : UPGRADING WHAT WORKS

Source : Ross Dawson, futureexploitation.net

ENDING OF THE DECLINIST