Newspaper Circulation Races Ahead In The Developing World, But In North America It Is Down And Europe Is Static – Perhaps Because Free Newspapers Now Account For 31.94% of Europe’s Newspaper Circulation

Those figures come from the World Association of Newspaper’s annual World Press Trends Survey, pretty much taken as the Bible in newspaper circles in describing the health of the global newspaper industry.

Add everything together and WAN boasts that global newspaper sales are up 2.3% over a year ago, 9.48% up over five years ago, and offers that as proof that the global newspaper industry is doing very well, thank you very much, no matter what the doomsayers say. In fact, the numbers are even better when adding free newspaper circulation – the one year increase is 4.61% and over the past five years the increase is 14.76%.

But sift through all the numbers and there is really one main feature that blasts though – circulation is dropping a bit in the rich developed world and roaring ahead in the developing world: The US down 1.9% in 2006 and down 5.18% over five years; the UK down 2.66% in the past year and 12.5% over five years; and Japan down 0.83% in the past year and down 2.42% over five years whereas in powerhouse India one-year circulation is up 12.93% and up 56.63% over five years and in China the one-year circulation is up 2.27%, and up 15.53% over five years.

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And when it comes to advertising revenue the story is similar -- the US, UK, and Japan all down in the past year, whereas India soared 23% and China eked out a 1.36% gain. Overall, advertising revenues in paid dailies rose 3.77% last year.

But if your newspaper organization had the word “World” in it, you, too, would spin the positive, as did Timothy Balding, WAN Chief Executive Officer. "Newspapers in developing markets continue to increase circulation by leaps and bounds, and in mature markets are showing remarkable resilience against the onslaught of digital media. Even in many developed nations the industry is maintaining or even increasing sales. At the same time, newspapers are exploiting to the full all the new opportunities provided by the digital distribution channels to increase their audiences.

"As the digital tide gathers strength, it is remarkable that the press in print continues to be the media of preference for the majority of readers who want to remain informed. These results are even better than we expected from provisional data available a few months ago. Once again we can see that far from being an industry in decline, as the ill-informed and short-sighted continue to contend, newspapers are alive and well and exhibiting enormous innovation and energy to maintain their place as the news media of preference for hundreds of millions of people daily".

Perhaps the most remarkable figure comes out of Europe where WAN says that 31.94% of all European newspaper circulation now comes from free newspapers. Globally that figure is now 8%.

The main WAN data:

-- Paid circulation grew 2.3% worldwide in 2006 from a year earlier, taking global sales to a new high of more than 515 million daily. With free dailies added, daily circulation increases to nearly 556 million, a 4.61% increase from the total of paid and free dailies in 2005.

-- The total number of global paid-for daily titles was up 3.46% in 2006 and up 17.67% since 2002 to a record 11,207 titles. The total number of paid and free titles increased by 4.33% in 2006 and by 19.63% since 2002.

-- Newspaper advertising revenue increased 3.77% in 2006 from a year earlier, and was up 15.77% over five years.

-- Paid daily newspaper circulations were up in 31% of the countries surveyed in 2006, stable in half the countries and down in 19%. Over the past five years, newspaper circulations were up in more than half of the countries surveyed and stable in 20%.

-- More than 515 million people buy a newspaper every day, up from 488 million in 2002. Average readership is estimated at more than 1.4 billion people daily.

-- Seven of 10 of the world's 100 best selling dailies are now published in Asia. China, Japan and India account for 60 of them.

-- The five largest markets for newspapers are: China, 98.7 million copies sold daily; India, 88.9 million; Japan, 69.1million; the US, 52.3 million; and Germany, 21.1 million.

-- Circulation sales were up 3.61% in Asia in 2006 over the previous year, up 4.55% in South America, up 0.74% in Europe, up 0.65% in Africa, up 2.11% in Australia and Oceania, and down 1.97 % in North America.

-- The number of paid-for newspaper titles increased everywhere but South America, where it was stable. The number of newspaper titles was up 7% in Asia, 1.3% in Europe, 0.67% in North America, 1.2% in Africa and 1.14% in Australia and Oceania.

-- Daily paid newspapers in Europe saw a 0.74% increase in circulation in 2006, and a 4.12% decrease over five years. When free dailies are added, circulation increased 10.19% year-on-year and 12.84% over five years.

-- In the European Union, paid daily newspapers saw a 0.87% drop in 2006 and a 5.63% drop since 2002. Combined with free dailies, circulation in the EU rose 7.56% over one year and 12.22% over five years.

-- Newspapers in 10 European Union countries increased their total circulation
in 2006. They were: Austria 9.43%, Estonia 7.81%, Ireland 5.54%, Italy 1.88%, Lithuania 1.52%, Malta 5.26%, Poland 2.13%, Portugal 8.95%, Romania 25.70%, and Slovakia 1.09%. Circulation was stable in Cyprus.

Those reporting losses were: Belgium 2.86%, Czech Republic 1.78%, Denmark
1.71%, Finland 0.71%, France 1.55%, Germany 2.1%, Greece 4.85%, Hungary
0.62%, Latvia 7.76%, Luxembourg 0.87%, The Netherlands 2.07%, Slovenia 18.60%, Spain 2.14%, Sweden 2.14% and the United Kingdom 2.66%.

-- Over the five years 2002-2006, circulation rose in nine countries: Austria 10.25%, Cyprus 11.11%, Czech Republic 1.24%, Estonia 8.24%, Ireland 35.36%, Malta 25%, Poland 24.95%, Portugal 12.70%, and Slovenia 1.74%.

In the same period, circulation declined in: Belgium 3.46%, Denmark 11.5%; Finland 1.94%; France 5.70%; Germany 9.35%; Greece 2.79%; Hungary 9.03%; Italy 4.49%;
Latvia 17.05, Luxembourg 3.39, Netherlands 11.13 %; Slovakia 9.18%, Spain .13%; Sweden 3.95% and the United Kingdom 12.5%.

Elsewhere in Europe, circulation in 2006 increased 2.80% in Turkey and 36.25% in Croatia. It declined 2.9% in Norway, and 2.54% in Switzerland. Over five years, the decline was 10.1% in Norway, 9.64% in Switzerland and 6.20% in Croatia, while it climbed 55.57% in Turkey.

--The number of paid-for newspaper titles in the EU climbed 0.41% in 2006, to 1,482, and was up 3.2% over five years. When paid and free titles are combined, the number of titles rose 2.57% over one year and 8.44% over five years.

-- The circulation of US dailies fell 1.9% in 2006 and 5.18% over five years. Most of the decline came in evening dailies, which saw a year-on-year circulation decline of 4.62%, compared with only 1.48% for morning dailies. Over the past five years, PMs declined 19.62%, compared with a 2.52% drop for morning newspapers.

-- In Japan, newspaper sales fell by 0.83% in 2006. Over five years, sales were down 2.42%. China newspaper sales continue to perform well, up 2.27% and 15.53% over one and five years.

-- In Latin America, where it has been difficult to obtain reliable data, Brazilian newspaper sales were up 6.50% in 2006 and up 3.70% over five years. Colombia newspaper sales increased 3.23% in 2006 but were down 11.1% over five years.

-- Indian newspaper sales increased 12.93% in 2006 and 53.63% over five years.
Elsewhere in Asia, sales were up in Malaysia 1.82%, Singapore 4.06%, Bangladesh 8.3% and Korea 10.59% over one year, and down in Taiwan 6.67%. Over five years, sales rose in Taiwan 2.44%, Malaysia 19.97%, Singapore 0.48%, Thailand 12.31%, Bangladesh 30% and Korea 19%.

-- Sales in Australia were up 2.95% in 2006 and were stable over five years, while New Zealand newspaper sales were down 1.10% year-on-year and down 3.22% over five years.

-- In Africa, sales were up 8.24% in South Africa in 2006, and 43.18% over five years. Sales were stable in Nigeria and Kenya in 2006 and up 7.89% and 1.90% respectively over five years.

-- The Japanese remain the world's greatest newspaper buyers, with 630.9 daily sales per thousand adults, followed by Norway, 601.2, Colombia 587.8, Finland 514.7 and Sweden 466.2.

-- The Belgians spend the most time with their newspapers -- 54 minutes a day on average, followed by the Chinese, Finns and Brazilians, with 48 minutes each.

-- Sunday newspaper circulations declined 3.69% in 2006 and 6.2% over five years. The US and the UK are by far the largest Sunday markets.

-- Circulation for non-daily newspapers rose 7.29% over one year and 18.68% over five years.

-- Global newspaper advertising revenues have increased for four straight years and were up 3.77% in 2006.

-- Newspapers’ share of the world ad market held relatively steady with 29.6%, marginally down from 29.8% in 2005. Newspapers remain the world's second largest advertising medium, after television, with more revenue that radio, cinema, outdoor, magazines and the internet combined. When newspapers and magazines are combined, print is the world's largest advertising medium, with a 42% share, compared to 38% for television.

Seventeen countries saw newspaper advertising market share growth in 2006:
Austria, Belgium, Switzerland, Czech Republic, Greece, Indonesia, India, Hong Kong, Colombia, Mexico, Puerto Rico, Bahrain, Kuwait, Oman, Qatar, United Arab Emirates, and South Africa.

Over five years, newspapers in 12 countries and territories saw increased market share: Austria, Denmark, Greece, Poland, Russia, Slovenia, Taiwan, Puerto Rico, Kuwait, Oman, Saudi Arabia and the United Arab Emirates.

-- Newspaper advertising revenues in the US, by far the largest newspaper advertising market in the world, decreased by 1.68% in 2006 but increased by 5.69% over the last five years.

- In Japan, ad expenditures declined in 2006 by 3.20% but were up 10% over the past five years. China saw an increase in advertising revenues of 16% last year, and 58% over five years.

- Newspaper markets in the European Union saw a 1.36 % increase in newspaper advertising revenues in 2006, and a 39.54% increase over five years. Twenty-one of 24 EU countries for which data was available showed increases in advertising revenue in 2006: Austria 5.7%, Belgium 19%, Bulgaria 71.90%, Czech Republic 12.47%, Denmark 0.53%, Estonia 15.64%, Finland 2.50%, France 1.37%, Germany 1.13%, Greece 1.45%, Ireland 4.49%, Italy 3.77%, Latvia 4.87%, Lithuania 6.12%, Luxembourg 43%, Poland 11%, Romania 11.18%, Slovakia 11%, Slovenia 20.96%, Spain 0.21%, and Sweden 0.05%,

Newspaper advertising revenue declined in Hungary 6.49 %, The Netherlands 0.46%, and the United Kingdom 4 %.

Over five years, advertising revenues was up in all 23 countries for which data was available: Austria 50.38%, Belgium 107.5%, Bulgaria 3.98 %, the Czech Republic 91.74 %, Denmark 42.71%, Estonia 124.68%, Finland 2.5%, France 33.80%, Germany 20.14%, Greece 57.20%, Hungary 62.88%, Ireland 63%, Italy 39.53%, Latvia 49.66%, Lithuania 71.85%, Luxembourg 43.24%, The Netherlands 54.74%, Poland 200%, Romania 111.57%, Slovakia 179%, Spain 0.51%, Sweden 46.7%, and the United Kingdom 25%.

-- In India, newspaper advertising revenues increased 23.18% over one year and 85% over the last five. South Africa also saw remarkable gains -- 20.71% over one year and 141% over five years. Turkey was up 3.01% in 2006 and 152% over
the past five years.

-- In Australia revenues were down 2.77% over one year but rose 65.44% over five years. New Zealand saw a marginal 0.84% gain last year and an increase of 33.28% over five years.

-- A total of 287 free daily newspapers had a combined circulation of 40.7 million daily, a circulation increase of 55% over one year and 241% over five years. Twenty-seven million of those daily copies are distributed in Europe alone.

-- The five largest free dailies are Metro in the United Kingdom, 1.13 million copies; Leggo in Italy, 1.05 million; 20 Minutos in Spain, 997,000, Que! in Spain 970,000, and ADN in Spain 914,000.