National Newspapers - UK - October 2007

ISSUES IN THE MARKET
Key themes
Definition
INSIGHTS AND OPPORTUNITIES
Building from strength
Going with the flow
A fine new opportunity
FAST FORWARD TRENDS
Fast Forward Trends – an explanation
Edutainment
I Want It All. And I Want It NOW!
MARKET IN BRIEF
Where are we now
Changing behaviour and attitudes
Innovation for the future
The prize winners
Future prospects
INTERNAL MARKET ENVIRONMENT
Key points
Multiplicity and immediacy
The Internet
Figure 1: Selected websites browsed for information 2002-07
The Internet moves on
The future will depend on the young
Figure 2: 11-19s who use the Internet for newspapers/news, 2002, 2004 and 2006
The advance of the free titles
Figure 3: Average daily distribution of audited free titles, 2004-07
Downside specifics
Other possible scenario
Where’s it all coming from?
Figure 4: TV viewership in UK households*, 2002-06
The UK and beyond
BROADER MARKET ENVIRONMENT
Key points
Ageing – a good fit
Figure 5: Trends and projections in UK population, by age group, 2002-12
But what about the young?
The middle classes on the rise
Figure 6: Forecast adult population trends, by socio-economic group, 2002-12
No more leisure for you
Figure 7: Time spent on occupation per day in an average week by full-time workers, 2002 and 2006
COMPETITIVE CONTEXT
Key points
Moving ever forward
Media convergence
Access on the move
More than just news, current affairs and sports results
Older media hold their own
Figure 8: UK total sales of books, by volume and value, 2002-07
The book in a digital world
Magazines another major contender
Figure 9: UK retail sales of magazines, by value, 2002-07
Music on the move
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
Innovate to stand still?
Online – the first big step
Online and onward
More multimedia
How to make it pay?
Recognising the reality
Figure 10: ABC group data*, July 2007
Meanwhile in another country
Younger readers (or non-readers)
MARKET SIZE AND FORECAST
Key points
The challenges ahead
Reading between the lines
Figure 11: Annual sales of national daily and Sunday newspapers, by volume, 2002-07
Revenue sources
Figure 12: Share of consumer expenditure on national newspapers and advertising revenue, at current and constant 2002 prices, 2003-07
Average cover prices
Advertising revenue
 THE FUTURE OF THE MARKET
Over the shorter term
Over the longer term
Further decrease in volume sales by 11%
Figure 13: Forecast Annual sales of national daily and Sunday newspapers, by volume, 2002-12
Factors incorporated in the forecast
SEGMENT PERFORMANCE
Key points
Average circulation for dailies and Sundays
Figure 14: Trends in average circulation/issue for national daily and Sunday newspapers, 2002-07
Average circulation for each sector
Figure 15: Trends in average circulation for popular, mid-market and quality newspapers, 2003-07
Divisions become entrenched
Why are the populars losing it?
Meanwhile, further upmarket
Adding value
Sundays’ woes
MARKET SHARE
Key points
 MARKET SHARE BY TITLE
Below the topline
The dailies
Figure 16: National daily newspaper circulation*, 2005-07
It’s all relative
But the Daily Mail sails on regardless
Trouble across the border
The Sundays
Figure 17: National Sunday newspaper circulation, 2005-07
The populars and the mid-market
A sudden squall among the qualities
Market share by publisher
Figure 18: Market shares of national newspaper publishers, by total volume, 2005-07
COMPANIES AND PRODUCTS
News International
A switch in policy
News Group Newspapers
The Sun
Promotions
Times Newspapers
Online developments
Promotion
Associated Newspapers
Consistency and strength
Promotions
The digital world
Trinity Mirror
A troubled present
Better prospects ahead
Other opportunities
Express Newspapers
Telegraph Group
Fluidity and change
Integration
Guardian Media Group
Innovation and identity
Distinctive promotions
Additions to print
Independent Newspapers
Independence in print
More print innovation
Financial Times
Home and abroad
Consolidating its strengths
Other publishers
DC Thomson
Johnston Press
Newsquest
Sport Newspapers
BRAND COMMUNICATION AND PROMOTION
Key points
The overall picture
Figure 19: Main monitored media advertising expenditure by national newspapers, 2003-07*
Adspend by medium
Figure 20: Main monitored media advertising expenditure on national newspapers, by medium, 2003-07*
The cost of below-the-line
Adspend by advertiser
Figure 21: Main monitored media advertising expenditure on national newspapers, by publisher, 2004-06
Strategic or tactical
DVDs/CDs or alternatives
Direction for the future
BRAND ELEMENTS
 BRAND MAP
Figure 22: Attitudes and usage of national newspaper brands, September 2007
 THE TIMES
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 23: Attitudes towards the Times brand, September 2007
 SUNDAY TIMES
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 24: Attitudes towards the Sunday Times brand, September 2007
 THE SUN
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 25: Attitudes towards the Sun brand, September 2007
 NEWS OF THE WORLD
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 26: Attitudes towards the News of the World brand, September 2007
 DAILY EXPRESS
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 27: Attitudes towards the Daily Express brand, September 2007
 DAILY MIRROR
Brand background
What does the consumer think?
Figure 28: Attitudes towards the Daily Mirror brand, September 2007
 INDEPENDENT
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 29: Attitudes towards the Independent brand, September 2007
 DAILY MAIL
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 30: Attitudes towards the Daily Mail brand, September 2007
 THE GUARDIAN
Brand background
What the brand is trying to achieve?
What does the consumer think?
Figure 31: Attitudes towards the Guardian brand, September 2007
 THE DAILY TELEGRAPH
Brand background
What the brand is trying to achieve?
What does the consumer think?
Performance indicators
Figure 32: Attitudes towards the Daily Telegraph brand, September 2007
 BRAND QUALITIES OF NATIONAL NEWSPAPER BRANDS
Figure 33: Consumer perception of various national newspaper brands, September 2007
 EXPERIENCE OF NATIONAL NEWSPAPER BRANDS
Figure 34: Consumer usage of various national newspaper brands, September 2007
 BRAND CONSIDERATION FOR NATIONAL NEWSPAPER BRANDS
Figure 35: Consideration of various national newspaper brands, September 2007
 BRAND SATISFACTION FOR NATIONAL NEWSPAPER BRANDS
Figure 36: Satisfaction of various national newspaper brands, September 2007
 BRAND COMMITMENT TO NATIONAL NEWSPAPER BRANDS
Figure 37: Commitment to various national newspaper brands, September 2007
Round up
CHANNELS TO MARKET
Key points
Changing patterns in distribution
Figure 38: Retail sales* of national newspapers, by outlet, 2005 and 2007
Traditional strength of the newsagent
The further shift to convenience
Smaller grocers
Retail promotion
THE CONSUMER – READERSHIP HABITS AND ATTITUDES
Key points
Internet increases in popularity
Figure 39: Agreement with selected lifestyle statements, 2003-07
The youth view of newspapers
Figure 40: Agreement with selected lifestyle statements, 7-10s and 11-14s, 2002-06
Newspaper readership
Figure 41: Type of newspaper regularly read, 2003-07
Growth of the free dailies
THE CONSUMER – ATTITUDES AND MOTIVATIONS
Key points
 IMPORTANT TOPICS
Figure 42: Important factors when choosing a newspaper to read, July 2007
News, sport and something a little lighter
Some things don’t change
Figure 43: Top three important factors when choosing a newspaper to read, by type of newspaper read, July 2007
How they vary through the week
Figure 44: Cross-analysis of type of newspaper read, by important factors when choosing a newspaper to read, July 2007
 ATTITUDES TOWARDS NEWSPAPERS
Figure 45: Agreement with statements about newspapers, July 2007
Print strengths
Threats
Weekday/weekend reading
Main sources of news
Figure 46: Where news is sourced from, July 2007
Primacy
How consumers vary
FURTHER ANALYSIS – CONSUMER TYPOLOGIES
Key points
News groups – an overview
Figure 47: Newspaper readership typologies, July 2007
Well-read (23% of sample)
Targeting the Well-read
Conservatives (62% of sample)
Targeting the Conservatives
Online Readers (15% of sample)
Targeting the Online Readers
APPENDIX
Advertising data
Abbreviations
Internal market environment
Figure 48: Used the Internet at home or elsewhere in the last 12 months, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, household size and car usage, 2007
Figure 49: 7-14s who use the Internet, 2002-06
Market share
Figure 50: Bulk copies as percentage of average net circulation, 2005 and 2007
Figure 51: Sales outside UK and RoI as a percentage of average net circulation, 2005 and 2007
Market share by publisher
Market share in dailies
Figure 52: Market shares of national daily newspapers, by publisher, 2005-07
Market share in Sundays
Figure 53: Market shares of national Sunday newspapers, by publisher, 2005-07
Brand communication and promotion
Figure 54: Main monitored media advertising expenditure on national newspapers, by medium, 2003-07*
Figure 55: Main monitored media advertising expenditure on national newspapers, by medium, 2004 and 2006
The consumer – Readership habits and attitudes: Detailed demographics
Figure 56: Agreement with selected lifestyle statements, by gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, household size and car usage, 2007
Figure 57: Agreement with selected lifestyle statements, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, household size and car usage, 2007
Figure 58: Agreement with selected lifestyle statements, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, media usage, household size and car usage, 2007
The consumer – Readership: Detailed demographics
Figure 59: Type of newspaper regularly read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 60: Type of newspaper regularly read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 61: Type of newspaper regularly read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 62: Important factors when choosing a newspaper to read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 63: Important factors when choosing a newspaper to read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 64: Important factors when choosing a newspaper to read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 65: Important factors when choosing a newspaper to read, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 66: Cross-analysis of type of newspaper read, by important factors when choosing a newspaper to read, July 2007
Figure 67: Agreement with statements about newspapers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 68: Agreement with statements about newspapers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 69: Agreement with statements about newspapers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 70: Agreement with statements about newspapers, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 71: Cross-analysis of type of newspaper read, by agreement with statements about newspapers, July 2007
Figure 72: Where news is sourced from, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 73: Where news is sourced from, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 74: Where news is sourced from, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel’s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, July 2007
Figure 75: Cross-analysis of type of newspaper read, by where news sourced from, July 2007
Further analysis – Consumer typologies: Detailed demographics
Figure 76: Cluster groups, by gender, age, socio-economic group, marital status, lifestage, working status, tenure, ACORN category, commercial TV viewing, region, newspaper readership, supermarket usage, detailed lifestage groups, presence of children and Mintel’s Special Groups, July 2007
Figure 77: Cluster groups, by agreement with statements about newspapers, July 2007
Figure 78: Cluster groups, by type of newspaper read, July 2007
Figure 79: Cluster groups, by important factors when choosing a newspaper, July 2007
Figure 80: Cluster groups, by where news sourced from, July 2007