World Association of News Publishers releases its latest survey
Emerging markets are leading the way when it comes to revenue growth, investment in technology and content is more important than ever, and some major press freedom challenges lie ahead. These are some of the most striking trends identified in the latest World Association of News Publishers (WAN-IFRA) survey.
The World Press Trends Report, produced between July and September last year, includes feedback from 167 news executives from 62 different countries, with WAN-IFRA calling the results “sobering” given the numerous problems publishers are grappling with . including high inflation, rising paper and printing costs and ongoing changes in advertising markets.
“The impact of layoffs and significant changes at big tech companies like Meta and Twitter can also impact publishers’ strategies. primarily in terms of distribution and some potential revenue streams,” the report said.
“At the same time, publishers continue to invest in new revenue streams. Many of our survey respondents report that these investments are beginning to bear financial fruit. Publishers are balancing these efforts with the need to maintain their core revenue streams, often focused on print, while also recognizing the need to redouble investments in areas such as product development, R&D (including AI technologies), reader revenue, and staff. ”
Short term pain, long term gain
The survey shows that while more than half of respondents (55.4%) are “pessimistic” about the next 12 months, they are more optimistic about the future a few years from now. Pessimism dropped to 46.4% (-9%) when survey respondents were asked about their company’s prospects in three years’ time.
Despite a pessimistic outlook, publishers were optimistic about 2022 revenues. Revenue expectations were higher as respondents expected revenue growth of 16.4% over 2021. In comparison, for 2021, which is emerging from the early stages of the pandemic, survey respondents were forecasting revenue to rise by 7.3% year-on-year.
According to the survey, sales growth is being led by emerging markets. For 2021, publishers in these markets expected an 8% increase in revenue. That’s up 24% year over year for 2022. In contrast, respondents from developed countries said they expect sales to grow 12% in 2021. This drops to 8% for 2022.
Combined, print advertising and circulation generate more than half (53.5%) of the total revenue seen by respondents to the WAN-IFRA survey, but is lower than last year’s report when it was 56.1%.
Ad revenue now accounts for almost half (47.7%) of their earnings. Reader revenue across print and digital is expected to bring in just over a third (35.8%) of revenue.
While ad and reader revenue remain important, the fastest growing area for publishers is in “other categories” — a catch-all term that includes activities like events, commissioned publishing, and e-commerce.
The importance of content and technique
Publishers who took part in the online survey identified investments in content and technology as keys to success. Product development and R&D are the leading areas for investment, with nearly nine in ten respondents (88%) saying that investing in these areas is important to their business.
As digital transformation efforts continue, AI is seen as the biggest game changer. Over two-thirds (69%) told WAN-IFRA that AI will have the biggest impact on their business in the next two to three years. This was followed by 5G (28%) and the Metaverse (16%).
Revenue streams are also a pressing priority, with reader revenue, ad sales and focusing on other revenue streams all rated important by 84%. Newsroom hiring came second on our list, with 76% of respondents saying it was a key area for investment.
As digital transformation efforts continue, AI is seen as the biggest game changer. Over two-thirds (69%) told WAN-IFRA it will have the biggest impact on their business over the next two to three years, followed by 5G (28%) and Metaverse (16%).
News outlets continue to face major press freedom challenges, according to the survey: six in ten (60%) respondents said their employer was the target of cyberattacks, up from 45.7% in 2021.