The second edition of FIPP’s World Digital Media Factbook was launched today (24 September) at the FIPP World Magazine Congress in Rome. FIPP has partnered with WNMN on the report for the past two years, and today, FIPP’s marketing manager, Cobus Heyl, presented the report to more than 700 attendees from over 30 countries.
The report focuses on global media revenue and digital user trends, including mobile, tablet and app trends. Smartphone and tablet platforms continue to offer big opportunities for magazine publishers, while “mobile-first strategy” is the buzzword of the future. Exponential growth in mobile usage will translate into corresponding revenue opportunities. Expenditures on mobile ads worldwide are predicted to hit $36.87bn by 2016, so data shows that mobile has to be an integral part of any publication’s development strategy. There has also been massive growth in engagement and consumption via tablets.
China is the global leader in terms of mobile purchases versus desktop or laptop purchases, with more than half made via mobile devices – mobile e-commerce is another area that will be growing going forward. Readers also research their purchases on mobile. “As magazine media, we are very well positioned to take advantage of this trend, to engage users and provide them with opportunities to do their research and then send them on their e-commerce journeys,” said Heyl. Thus e-commerce is a continuing opportunity for magazine media.
Video also continues to gain popularity across digital channels and magazine publishers are using video in an increasingly innovative manner. “I don’t think there is another word to describe it besides ‘explosion’,” said Heyl. With the likes of Facebook and Twitter also entering the fray alongside Instagram and Vine, mobile video usage is also bound to grow.
Social media remains a driving force in the new media landscape. While social media may be ‘old news,’ clear patterns are emerging as research shows 80 million consumers engaging in three or more social media activities per day in the US alone. More people spend time in social media via mobile than via the web.
The Factbook concludes that in 2012-2013, magazine media made huge strides forward, including innovative storytelling on new devices, increasing subscription and advertising revenue opportunities and developing new revenue streams. While print circulation and advertising will continue going down slightly, “The question for us is whether the gains in digital media will replace the losses in print media,” said Heyl.
The digital edition of the FIPP World Digital Media Factbook is sponsored by Snapplify.
Key findings and trends from the FIPP World Digital Media Factbook include:
- About half of US business publications and newspapers have or are planning a paywall
- The key to success is to leverage current publishers and broadcast audiences and extend brands by building cross-platform marketing campaigns and new content appropriate for each channel. This strategy must include new technology designed to engage audiences through audience insights and social media components
- Canada finally surpassed the 40 per cent mobile penetration mark to become a digital hot spot
- The fastest growing internet usage countries are in the developing world, including China, Indonesia, India, Iran, Russia, the Philippines and Brazil
- By 2015, internet video will represent 33.6 per cent of all internet traffic, compared to 8.6 per cent for web, email and data; and 8.1 per cent for P2P file sharing
- Western Europe mobile adspend will almost match that of Asia-Pacific next year, and will track to more than half that of North America by 2016
- The fastest growing Facebook use countries are Brazil, India, Japan, Indonesia, Mexico, Vietnam, US, South Korea, Thailand and Germany
- Brazil and India have seen tremendous growth, almost doubling their Facebook usership by 29.72 million and 21.31 million respectively
- The media industry, including television, radio, newspapers, magazines and digital media typically represents between 1.5 per cent and 2.5 per cent of a nation’s GDP
- The world’s overall advertising market will grow at a compounded annual growth rate of 4.8 per cent from 2013 to 2017
- The top ten contributors to adspend growth are the US, China, Argentina, Indonesia, Russia and Japan
- Global mobile advertising will surge 27 per cent from 2013 to 2017, while internet advertising will grow 11.4 per cent
- 2013 internet and mobile advertising will reach more than US$116bn worldwide, and by 2017, will expand to $185.4bn, a 13.1 per cent leap
- Asia-Pacific is tracking to surge ahead of other regions in mobile advertising revenue from 2012 to 2016, and that global mobile adspend will almost treble during that four-year period
- Google continues to dominate the digital advertising revenue landscape in the United States, earning almost one-third of the digital advertising pie, or US$12.8bn in 2011 and $15.4bn in 2012