Print Media...14 XMWB 1,200 15 JLWB 1,200 Ranking Name (Circulation ’000) 16 YCWB 1,170 17 WMG...
Transcript of Print Media...14 XMWB 1,200 15 JLWB 1,200 Ranking Name (Circulation ’000) 16 YCWB 1,170 17 WMG...
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Print Media
© 2017 Beyond Summits 1
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© 2017 Beyond Summits
Summary:
• According to statistics, from 2011 to 2016, with the increasing penetration of digital media, the
reading rate of Chinese newspapers continued to decline, falling to 39.7% in 2016, and the
overall reading rate of periodicals also decreased.
• In recent years, the sharp decline in China's traditional newspaper industry has continued, and
the total retail sales of various newspapers across the country have further declined. The
double decline in the number of traditional newspapers and periodicals readers and advertising
revenue has made it difficult for newspapers and magazines to operate in recent years. From
2006 to 2016, the number of Chinese newspapers has declined year by year, dropping to
1,894 in 2016.
• In 2016, magazine advertising revenue and advertising space continued to decline, and the
decline was higher than that of 2015.
3 3 3
9,468 9,468 9,549 9,851 9,884 9,849 9,867 9,877 9,966 10,014 10,084
1,938 1,938 1,943 1,937 1,939 1,928 1,918 1,915 1,912 1,906 1,894
0
2,000
4,000
6,000
8,000
10,000
12,000
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The Number of Periodicals & Newspaper Published
Periodicals Newspaper
© 2017 Beyond Summits
Source: China's National Bureau of Statistics
From 2006 to 2016, the number of Chinese newspapers has declined year by year, dropping to
1,894 in 2016. On the contrary, the number of periodicals has increased slowly, reaching 10,084 by
2016.
4 4 4
Source: CTR Market Research
53.9%
49.6%
42.6%
37.8%
32.8%
25 24
21
19
17
0
5
10
15
20
25
30
0%
10%
20%
30%
40%
50%
60%
2012 2013 2014 2015 2016
Newspaper’s Daily Reach Rate and Average Daily Reading Time among Urban Residents
Daily Arrival Rate Average Daily Reading Time (min)
© 2017 Beyond Summits
In 2016,newspaper’s daily reach rate and average daily reading time among urban residents
both decreased compared to 2015, reaching 32.8% and 17 minutes respectively.
5 5 5
Source: CTR Market Research
25.5
44.4
15.7 14.4
24.2
44.6
14.1 17.0
24.7
42.7
12.7
19.9
0
5
10
15
20
25
30
35
40
45
50
First-tier City Second-tier City Third-tier City Fourth-tier City
Newspaper’s Daily Reach Rate among Urban Residents in Different Cities (%)
2014 2015 2016
© 2017 Beyond Summits
Newspaper’s daily reach rate among the urban residents in first-tier, second-tier, and third-tier
cities declined from 2014 to 2016. However, it showed a growth trend in fourth-tier cities.
6 6 6
Source: CTR Market Research
31.5
23.5 22.4 22.6
30.6
21.4 22.5
25.6 25.1
21.8 23.8
29.4
0
5
10
15
20
25
30
35
<30 years old 30-40 years old 40-50 years old >50 years old
Newspaper’s Daily Reach Rate among Urban Residents of Different Ages
2014 2015 2016
© 2017 Beyond Summits
From 2014 to 2016, the newspaper’s daily reach rate among middle-aged and elderly urban
residents continued to rise. In addition, the proportion of people reading newspapers daily is also
positively correlated with age.
7 7 7
Source: Chinese Academy of Press and Publication
41.3% 45.2%
38.3% 40.3%
34.6%
26.3%
63.1%
58.2%
52.7% 55.1%
45.7%
39.7%
0%
10%
20%
30%
40%
50%
60%
70%
2011 2012 2013 2014 2015 2016
Reading Rate of Periodicals & Newspaper in China
Periodicals Newspaper
© 2017 Beyond Summits
According to statistics, from 2011 to 2016, the reading rate of Chinese newspapers continued to
decline, falling to 39.7% in 2016, and the overall reading rate of periodicals also decreased.
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Source: Chinese Academy of Press and Publication
© 2017 Beyond Summits
In 2016, the average reading time of Chinese newspapers and periodicals decreased significantly
to 13.15 minutes per day and 6.61 minutes per day, respectively.
11.80 13.19
10.05
13.42
8.83
6.61
22.00
18.91
15.50
18.80
17.01
13.15
0
5
10
15
20
25
2011 2012 2013 2014 2015 2016
Reading Time of Periodicals & Newspaper in China (minute per day)
Periodicals Newspaper
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Source: CTR Market Research
© 2017 Beyond Summits
In the first half of 2017, the expenditure on traditional media advertisements dropped significantly,
and the paper media saw the strongest decline. Among all paper media, newspapers fell most,
with a drop of 30.5%, and magazines also dropped by more than 20%.
The Growth of China’ s Traditional Media in 2017 H1
Traditional media Year-on-year Growth of Ad Publishing Fees
TV -3.6%
Radio 9.2%
Newspaper -30.5%
Magazine -23.4%
OOH -2.7%
10 10 10
With the following advantages, newspaper still takes a leading role in the media market:
• The authenticity of news and credibility of publisher make
newspaper highly authoritative and trustworthy.
• Easy to carry, lower price and the reprocess of news and
information, all of the above make newspaper surpass other
media.
• Some readers have formed a habit of acquiring news through
reading newspaper, which is hard to change in a short time.
• Newspapers have a large circulation and a wide range of
coverage, reaching the whole domestic market.
Newspaper also has its own disadvantages:
• Monotony in format, lack of flexibility and novelty.
• Barely any certification on the authentic circulation.
• The authenticity of news and credibility of publisher make
newspaper highly authoritative and trustworthy.
• Easy to carry, lower price and the reprocess of news and
information, all of the above make newspaper surpass other
media. Some readers have formed a habit of acquiring news
through reading newspaper, which is hard to change in a short
time.
© 2017 Beyond Summits
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Source: Chinese Academy of Press and Publication
© 2017 Beyond Summits
3.01
2.70
2.21 2.01
1.71
0
1
2
3
4
2013 2014 2015 2016E 2017E
China’s Paper Consumption in Newspaper (million ton)
From 2013 to 2017, the paper consumption of the national newspaper industry continued to
decline, and it was expected to fall to 1.711 million tons by 2017. In general, the paper
consumption reflects the sales of newspapers.
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Source: Huawen Group, Social Blue Book 2016
© 2017 Beyond Summits
Under the overall unfavorable background, the overall retail circulation of newspapers in China fell
by 46.5% in 2015, marking a lowest record in recent years.
30.97 30.07
27.40
24.51
20.40
15.69
9.86 9.49
-2.9%
-8.9% -10.6%
-16.7%
-23.1%
-37.2%
-19.9%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
0
5
10
15
20
25
30
35
2012H1 2012H2 2013H1 2013H2 2014H1 2014H2 2015H1 2015H2
Overall Retail Circulation of Newspapers(million)
Average sales Growth rate
13 13 13
Source: Huawen Group
© 2017 Beyond Summits
From 2013 to 2015, the retail circulation of urban newspaper declined sharpest. Political
newspaper, financial newspaper, IT newspaper and China Communist Party newspaper gradually
dominate the newspaper market, taking the place of urban newspaper.
72.34% 66.84%
56.60%
15.20% 19.91%
26.58%
4.35% 5.03% 7.10%
8.11% 8.22% 9.72%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2013 2014 2015
Retail Circulation of Different Categories
Urban Newspaper Political Newspaper Financial Newspaper IT Newspaper & China Communist Party Newspaper
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Source: Askci.com
© 2017 Beyond Summits
Ranking Name Circulation(’000)
1 Can Kao Xiao Xi 3,500
2 People's Daily 2,800
3 Global Times 2,400
4 Yangzi Wanbao 2,200
5 CNTV Dianshibao 2,000
6 Guangzhou Daily 1,850
7 Titan Sports 1,600
8 Nanfang Metropolis Daily 1,600
9 Qilu Evening News 1,500
10 XXSB 1,480
11 Southern Weekly 1,400
12 Chutian Metropolis Daily 1,300
13 Beijing Evening 1,200
14 XMWB 1,200
15 JLWB 1,200
Ranking Name Circulation(’000)
16 YCWB 1,170
17 WMG 1,150
18 XKB 1,130
19 Chengdu Economic Daily 1,120
20 Yanzhao Metropolis Daily 1,000
21 Dushi Kuaibao 950
22 QianJiang Evening News 950
23 Dahebao 950
24 Tonight News Paper 910
25 Bandao 900
26 Chinese National Geography 900
27 Nanfang Daily 850
28 LiaoShen Evening News 830
29 Beijing Times 830
30 Wuhan Evening News 800
China’s Newspaper Circulation in 2014
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Source: CTR Market Research
© 2017 Beyond Summits
Since 2012, the rapid development of the domestic Internet has drastically slowed down the
development of the traditional newspaper industry, and the sales volume of newspaper advertising
has gradually dropped to 22.75 billion yuan in 2015, a 35.4% decrease from the previous year.
37.1
43.9
48.7
45.1
41.4
35.2
22.8
8.1%
18.5%
11.0%
-7.5% -8.1%
-15.0%
-35.4%
-40%
-30%
-20%
-10%
0%
10%
20%
30%
0
10
20
30
40
50
60
2009 2010 2011 2012 2013 2014 2015
China’s Newspaper Ad Revenue(billion yuan)
Ads revenue Growth rate
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Source: CTR Market Research
-37.9%
-40.7% -41%
-41%
-40%
-40%
-39%
-39%
-38%
-38%
-37%
-37%
2015 2016
Growth Rate of Newspaper’s Advertising Area
© 2017 Beyond Summits
In 2016, the revenue of newspaper’s ads and advertising area continued to decline, and the
decline was higher than that of 2015.
-35.3%
-38.7% -39%
-38%
-37%
-36%
-35%
-34%
-33%
2015 2016
Growth Rate of Newspaper’s Ads Revenue in 2015-2016
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© 2017 Beyond Summits
In 2016, the industry that spent the most on newspaper advertising was the real estate and
construction engineering industry. However, in 2016, the advertising expenditure of the industry
dropped by 45.1%.
-44.8%
-34.8%
-16.5%
-6.1%
-20.5%
-45.1%
-40.9%
-32.4%
-15.4%
-38.9%
Real estate & Construction
Commercial & Service
Entertainment & Leisure
Finance
Post & Telecommunication
Industries Spent Money on Newspaper Advertising and Its Growth Rate
2015 2016
Source: CTR Market Research
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© 2017 Beyond Summits
In 2015, the amount of advertisements and estimated revenue of advertising in newspapers for the
country's major industries decreased year-on-year, with the largest decrease being in the tobacco
industry, and the smallest decline in the electronic computer industry.
Source: Meihua.info
Industry Estimated published price Year-on-year growth of ad
placement Electronics & Computer -2.3% -6.4%
Agriculture -15.3% -35.9%
Financial investment -17.7% -23.6%
Culture & Recreation -26.3% -25.7%
Industrial Office Supplies & Business Service -26.7% -27.1%
Clothing -32.8% -40.2%
Medicine & Health Products -38.7% -37.8%
Food & Beverage -39.6% -43.2%
Personal items -39.7% -45.1%
Retail & Service -42.8% -41.3%
Appliance -44.7% -46.9%
Real Estate -48.4% -44.4%
Education & Telecommunication -50.7% -51.6%
Household Appliance -51.4% -51.8%
Automobile -52.3% -50.1%
Cosmetics & Bathroom Supplies -54.9% -54.2%
Tobacco -71.3% -67.4%
Year-on-year Growth of Newspaper Ads & Estimated Revenue in 2015
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Source: CTR Market Research
© 2017 Beyond Summits
Growth Rate of TOP 5 Categories of Main Industries’ Spending on
Newspaper in 2016
Category
Growth
Rate in
2016
Retail Service -47.7%
Medical / Healthcare Institutions -34.1%
Education/Training -27.7%
Commercial and Service Industry-
others 2.8%
Beauty/Hairdressing/Body-care
Service -62.2%
Category
Growth
Rate in
2016
Tourism/Regional Image -30.2%
Entertainment and Leisure Service -47.8%
Sporting Goods and Service -30.0%
Entertainment and Leisure—
Corporate Image -29.5%
Teaching Supplies and Service -27.0%
Commercial and Service Industry Entertainment and Leisure
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Source: CTR Market Research
© 2017 Beyond Summits
Growth Rate of TOP 5 Categories of Main Industries’ Spending on
Newspaper in 2016
Category
Growth
Rate in
2016
Bank -15.2%
Bank Business -9.3%
Lottery -6.9%
Insurance -11.6%
Finance—Corporate Image -21.7%
Category
Growth
Rate in
2016
Website -40.8%
Mobile Internet Service -50.4%
Mobile and Multimedia Service -18.2%
Service of the Entire Network -27.8%
Corporate Image of Telecom
Operators 19.2%
Finance Posts and Telecommunication
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© 2017 Beyond Summits
In 2016, the brand with the highest advertising spending on newspaper ads was Evergrande, while
the brand with the highest increase in advertising spending was Ge Hong, which increased by
685.1%.
Source: CTR Market Research
Evergrande
Suning
CMCC
GOME
Red Star Macalline
Tmall
Gehong
ICBC
FAW-Volkswagen
Shanghai Volkswagen
11.1%
-24.0%
-40.4%
-47.8%
-42.2%
-40.8%
685.1%
-9.7%
-31.1%
New
Top 10 Brands That Spent Most on Newspaper Ad and Its Growth Rate (2016 VS 2015)
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© 2017 Beyond Summits
In 2015, the estimated revenue of Guangzhou Daily ads was the highest, falling by 28.1%
compared to the previous year. Other newspapers with relative high estimated revenue were The
Beijing News, XMWB, and Nanfang Metropolis Daily.
Source: Meihua.info
Top 10 Newspapers with the Highest Ads Revenue in 2015
Ranking Media Year-on-year Growth of Ads Revenue in 2015
1 Guangzhou Daily -28.1%
2 The Beijing News -37.4%
3 XMWB -39.5%
4 Nanfang Metropolis Daily -28.3%
5 Shanghai Morning Post -27.4%
6 Yangzi Wanbao -45.5%
7 Beijing Evening -25.6%
8 Beijing Times -41.1%
9 XDJB -55.0%
10 CQCB -42.4%
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© 2017 Beyond Summits
Future Pressure for Newspaper – From Audience
The digital era has arrived, which means that the readers are changing, and the industry itself is
also changing that will bring challenges upon newspapers.
• No more depending on reading newspaper in the morning
to acquire news and information.
• Not need newspapers to tell them about what’s important
like teachers or parents.
• Only want to be notified of news they are interested in,
which should be updated constantly.
• Not only want to know what is happening, but also want to
know why it’s happening.
• Expect to learn about news that is relevant to their own life.
• Expect news to be related with trending topics, which can
be used to chat and socialize with new friends in a much
bigger community.
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© 2017 Beyond Summits
Future Pressure for Newspaper – From Market
Today, the society has entered into a digital era. When, where and how readers, especially
new-generation ones, acquire news have changed greatly.
• The homogenization of contents and operation patterns will make newspapers be highly
replaceable with low profit.
• New media will aggressively grab more audience and ad placement from traditional newspaper
industry.
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© 2017 Beyond Summits
Magazines retain a certain growth and keep some market share based on the following
advantages:
• Fine print with rich colors to stimulate audience’s desire to read.
• The content is segmented, which allows readers to freely select and choose content based on
their interests.
• Magazines can be read repeatedly and kept for a long time, which makes it worth collecting.
• Magazines have high circulation rate to be read by a lot of audience.
But magazine has its own inherent weaknesses:
• Expensive, most magazines are priced from 10 to 20
RMB, some are even higher.
• Most magazines’ circulation is faked and cannot be
certificated and audited by any authorities, except several
famous ones.
• The preparation time before launching ads is so long,
usually lasting for 1-2 months before printing.
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Source: CTR Market Research
-27.1%
-40.1% -45%
-40%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
2015 2016
Magazine Advertising Space in 2015-2016
© 2017 Beyond Summits
In 2016, magazine advertising revenue and advertising space continued to decline, and the decline
was higher than in 2015.
-19.8%
-30.5%
-35%
-30%
-25%
-20%
-15%
-10%
-5%
0%
2015 2016
Magazine Advertising Revenue in 2015-2016
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Source: Zazhi.com
© 2017 Beyond Summits
In the first half of 2016, sales of education, parenting and foreign language magazines accounted
for the largest proportion among all categories of magazine, reaching 17.6%.
Ranking Magazine Category Proportion of Sales in 2016 H1
1 Education/Parenting/Foreign Language 17.60%
2 Fashion/Entertainment/Clothing 15.51%
3 Recreation and Sports/Art/Advertising 13.30%
4 Commercial/Finance/Marketing 11.04%
5 Politics/Military Information 10.81%
6 Automobile/Life/Baike 8.20%
7 Tourism/Photography/Digital 7.10%
8 Architecture/Geography/Gardens 6.66%
9 Film/Comic/Movie and Television 4.01%
10 Technology/Exhibition/Internet 2.98%
11 Medical Science/Food/Hotel 2.79%
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Source: Huawen Group
© 2017 Beyond Summits
Category Name Sales Ranking Market Share(%)
Auto
Auto Fan 1 13.90
Car Market Guide 2 9.67
Orient Auto 3 9.28
Female Fashion
ViVi 1 21.77
Rayli Clothing & Beauty 2 20.31
Rayli Beauty & Fashion 3 14.12
Parenting
Mon Baby: 0-3 years old 1 11.80
Parenting Science 2 10.61
Mon Baby: Pregnant Women 3 9.94
Male Fashion
FOR HIM MAGAZINE 1 20.89
LEON 2 15.61
Esquire 3 14.86
Finance
CBN Weekly 1 18.80
Business 2 11.13
Economic Weekly 3 8.63
Household
RAYLI HOME 1 32.00
TRENDSHOME 2 22.26
AD 3 12.21
China’s Magazine Sales Ranking & Market Share in 2015
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© 2017 Beyond Summits
In 2016, the industry with the largest decline in magazine advertising expenditure was the
cosmetics and bathroom products industry, which represented a drop of 38.4% from the previous
year.
-12.4%
-20.8%
-20.2%
-24.9%
-7.8%
-23.4%
-38.4%
-34.5%
-25.4%
-21.8%
Personal Products
Cosmetics/Bathroom Supplies
Transportation
Clothing
Entertainment & Leisure
Top 5 Industries with the Largest Magazine Advertising Expenditure and Its Growth Rate
2015 2016
Source: CTR Market Research
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© 2017 Beyond Summits
Source: Meihua.info
Industry Year-on-year Growth of Ad
Revenue
Year-on-year Growth of Ad
Placement Agriculture -17.4% -7.4%
Clothing -19.2% -8.6%
Personal items -20.8% -15.1%
Cosmetics & Bathroom supplies -21.3% -20.5%
Retail & Service -22.5% -29.9%
Appliance -23.0% -16.3%
Tobacco -23.6% -4.3%
Medicine & Health Products -24.5% -6.5%
Financial investment -24.9% -18.0%
Electronics & Computer -27.1% -25.7%
Culture & Recreation -29.3% -25.6%
Industrial office supplies & Business Service -32.3% -29.6%
Household appliance -33.6% -29.1%
Automobile -36.0% -28.2%
Food & Beverage -39.0% -40.6%
Real Estate -44.5% -36.0%
Education & Telecommunication -46.0% -42.5%
Year-on-year Growth of Magazine Ad Placement & Ad Revenue in 2015
In 2015, the number of advertisements and estimated expenditure of major industries in the country’s
magazines decreased year-on-year, but the overall decline was less than that of newspapers, with the
largest decrease being in educational telecommunications and other public service industry.
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Source: CTR Market Research
© 2017 Beyond Summits
Growth Rate of TOP 5 Categories of Main Industries’ Spending on Magazine
in 2016
Category
Growth
Rate in
2016
Personal Items -20.0%
Clock and Watch -31.6%
Jewelry -9.7%
Luggage and Bag -53.6%
Glass/Contact Lenses 5.8%
Category
Growth
Rate in
2016
Skin Care -30.0%
Makeup -36.8%
Perfume -46.2%
Cosmetics/Bathroom Supplies -52.2%
Shampoo/Hairdressing/Haircare -75.5%
Personal Items Cosmetics/Bathroom Supplies
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Source: CTR市场研究-媒介智讯
© 2017 Beyond Summits
Growth Rate of TOP 5 Categories of Main Industries’ Spending on Magazine
in 2016
Category
Growth
Rate in
2016
Transportation tool -34.3%
Vehicle Related Service -42.0%
Transportation Service -43.7%
Transportation—Corporate Image -26.8%
Transportation—others 49.7%
Category
Growth
Rate in
2016
Clothing Products -11.6%
Clothing -37.7%
Shoes -28.6%
Underwear -19.3%
Clothing—Corporate Image 308.7%
Transportation Clothing
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© 2017 Beyond Summits
In 2016, among the Top 10 brands that had spent the most money on magazine ads, Lancome
spent the largest amount of money. The brand with the largest increase in spending was FAW-VW
Audi, which increased by 48.8%.
Source: CTR Market Research
6.7%
-9.9%
-23.3%
-8.2%
-45.2%
-8.4%
48.8%
-9.7%
-27.3%
25.6%
Top 10 Brands That Have Spent the Most Money on Magazine Ads and Its Growth Rate (2016 VS 2015)
Lancome
Christian Dior
Chanel
Dior
Estee Lauder
LOUIS VUITTON
FAW-Volkswagen Audi
Audi
FAW-Volkswagen
Cartier
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© 2017 Beyond Summits
In 2015, advertisers who had a higher estimated magazine advertising investment were mainly the
cosmetic, fashion, and automotive industries, such as LVMH. It was worth noting that in 2015
Adidas strongly increased its investment in magazines.
Source: Meihua.info
Top 10 Magazine Advertisers in 2015
Ranking Advertiser Year-on-year Growth of Ad Investment in 2015
1 LVMH -1.9%
2 L'oreal -39.0%
3 FAW-Volkswagen 19.7%
4 Richemont -15.9%
5 SWATCH -22.5%
6 CHANEL -21.5%
7 Estée Lauder -27.5%
8 Mercedes-Benz 14.6%
9 Shanghai Volkswagen 41.2%
10 Adidas 51.0%
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© 2017 Beyond Summits
Source: Meihua.info
Top 10 Magazines with the Highest Advertising Investment in 2015
Ranking Media Year-on-year Growth of Advertising Investment in 2015
1 Elle 15.2%
2 Cosmopolitan -27.6%
3 Modern Weekly -29.8%
4 Bazaar -15.4%
5 Vogue -11.9%
6 Grazia -13.3%
7 Gateway -21.6%
8 Rayli -30.4%
9 Wings of China -7.4%
10 Marie Claire -17.4%
In 2015, advertisers who had a higher estimated magazine advertising investment were mainly the
cosmetic, fashion, and automotive industries, such as Elle, Cosmopolitan, and Modern Weekly.
However, the advertising investment on most of these magazines have dropped except Elle.
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© 2017 Beyond Summits
Serious homogeneity of magazines
For many magazines of the same category, the content is duplicated and cannot be further
subdivided and distinguished.
Fierce Competition in the market
As new magazines emerge like mushrooms, original magazines are at risk of elimination if they
cannot meet the market demand.
Impacts from new media
Online media and new media have changed consumers’ reading habits, and E-magazines are
getting more popular.
Future Pressure for Magazine
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© 2017 Beyond Summits
The Trend of Print Media under the Impact of New Media
• Create various digital forms, including website, mobile news, news client, and newspaper QR code.
Digital Forms
• Special issues, columns, and special edition will become the new features of print media.
Personalized Content
• Integrating traditional forms of print media with new media can boost sales and better market newspaper and magazines.
Interactive Management
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