PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON COMMUNICATIONS BY PRINT MEDIA SA AN...

PRESENTATION TO THE PRESENTATION TO THE PARLIAMENTARY PORTFOLIO PARLIAMENTARY PORTFOLIO

COMMITTEE ON COMMUNICATIONS COMMITTEE ON COMMUNICATIONS

BY BY PRINT MEDIA SA PRINT MEDIA SA

AN INTRODUCTION TO THE AN INTRODUCTION TO THE PRINT MEDIA INDUSTRY PRINT MEDIA INDUSTRY

1717THTH AUGUST 2004 AUGUST 2004

IntroductionIntroduction

The Print Media SA Team:The Print Media SA Team:

Connie Molusi, Connie Molusi, Chief Executive Officer, Johnnic CommunicationsChief Executive Officer, Johnnic Communications

Patricia Scholtemeyer, Patricia Scholtemeyer, Chief Executive Officer, Media 24 MagazinesChief Executive Officer, Media 24 Magazines

Khulu Sibiya,Khulu Sibiya, Senior Manager, Senior Manager, Special Projects, RCP MediaSpecial Projects, RCP Media

Ivan FynnIvan Fynn Editor, Cape Argus, Independent NewspapersEditor, Cape Argus, Independent Newspapers

Natasha StrettonNatasha Stretton General Manager, Print Media SAGeneral Manager, Print Media SA


Presenting to Parliament in two phases;Presenting to Parliament in two phases;

Phase 1: Introductory over viewPhase 1: Introductory over viewBackground to Print Media SA;Background to Print Media SA;Self regulation;Self regulation;Ownership trends;Ownership trends;Development and empowerment;Development and empowerment;Skills development;Skills development;Promotion of print;Promotion of print;Circulation and readership trends;Circulation and readership trends;


Phase 2: detailed analysisPhase 2: detailed analysis

Present again to you later in the year;Present again to you later in the year; Build on the on the first presentation;Build on the on the first presentation; Look in detail:Look in detail:

Technology;Technology;Systems;Systems;Transformation;Transformation;Media market place;Media market place;

BackgroundBackground

Print Media SA – Umbrella organisation:Print Media SA – Umbrella organisation: 3 Member associations;3 Member associations; Total of 617 members;Total of 617 members;

Print Media SA is representative of the majority of the Print Media SA is representative of the majority of the participants in the print media industry;participants in the print media industry;

Newspapers Association of South Africa Newspapers Association of South Africa (NASA)(NASA)

43 national & regional newspapers;43 national & regional newspapers; 133 community newspapers;133 community newspapers; Majority of the titles are published in English and Majority of the titles are published in English and

Afrikaans but there are titles published in isiZulu and Afrikaans but there are titles published in isiZulu and Chinese;Chinese;

Spread of titles – Spread of titles – urban and metropolitan daily; urban and metropolitan daily; Weekly; Weekly; monthly;monthly; sold and free neighbourhood newspapers that are sold and free neighbourhood newspapers that are

predominantly weeklies;predominantly weeklies;

Magazine Publishers Association of Magazine Publishers Association of Southern Africa (MPASA) Southern Africa (MPASA)

400 magazines; 400 magazines; spread across consumer, trade, technical and business - spread across consumer, trade, technical and business -

to – business, customer titles;to – business, customer titles; Members:Members:

Media 24;Media 24; Ramsay Son and Parker;Ramsay Son and Parker; Mafube Publishing;Mafube Publishing; Associated Magazines; Associated Magazines; Yired;Yired; Caxton Publishers & Prinrters;Caxton Publishers & Prinrters; Johnnic Communications;Johnnic Communications;

Community Press AssociationCommunity Press Association

41 small independent publishers;41 small independent publishers; In the process of being restructured; In the process of being restructured; Survey was conducted to ascertain needs: Survey was conducted to ascertain needs:

Skills development;Skills development; Collective procurement; Collective procurement; legal and business advice;legal and business advice;

The association will be launched and re-named in The association will be launched and re-named in September ;September ;

Print Media SAPrint Media SA

Operates in the collective interests of members;Operates in the collective interests of members; Issues are varied: Issues are varied:

Negotiations with representatives in the advertising, Negotiations with representatives in the advertising, marketing, printing and paper industries on matters of marketing, printing and paper industries on matters of common interest; common interest;

Campaigns that promote print media and awards Campaigns that promote print media and awards which recognize excellence in the industry; which recognize excellence in the industry;

Discussions and negotiations with government;Discussions and negotiations with government;Example - establishment of the Media Development and Example - establishment of the Media Development and

Diversity Agency (MDDA);Diversity Agency (MDDA); Represents members on other industry bodies;Represents members on other industry bodies;

Self - RegulationSelf - Regulation

Key principle; Key principle; Vigilant self-regulation is the hallmark of a free and Vigilant self-regulation is the hallmark of a free and

independent press; independent press; There are a number of There are a number of Codes of Practice; Codes of Practice; Industry is bound by these;Industry is bound by these; Form the self-regulatory framework within we must Form the self-regulatory framework within we must

operate;operate;

Press Ombudsman's Code of PracticePress Ombudsman's Code of Practice

Important mechanism of self-regulation for the print Important mechanism of self-regulation for the print media;media;

Established to provide the public with an accessible, Established to provide the public with an accessible, impartial and independent complaints mechanism;impartial and independent complaints mechanism;

Free, available to the public;Free, available to the public; Parties who subscribe to the Code of Practice are: Parties who subscribe to the Code of Practice are:

South African National Editors Forum (SANEF); South African National Editors Forum (SANEF); Forum for Community Journalists (FCJ); Forum for Community Journalists (FCJ); South African Union of Journalists (SAUJ); South African Union of Journalists (SAUJ); Media Workers Association of South African (MWASA); Media Workers Association of South African (MWASA); Print Media SA - NASA, MPASA and the CPA;Print Media SA - NASA, MPASA and the CPA;

Funded by the print media industry;Funded by the print media industry;

The Advertising Standards Authority of The Advertising Standards Authority of

South Africa (ASA)South Africa (ASA) Independent body set up and paid for by the marketing Independent body set up and paid for by the marketing

communications industry to: communications industry to: Regulates the content of advertising;Regulates the content of advertising;

Partnership:Partnership: marketers who pay for the advertising; marketers who pay for the advertising; advertising agencies who are responsible for content; advertising agencies who are responsible for content; media which carry the adverts; media which carry the adverts;

All three sectors work together to manage the process;All three sectors work together to manage the process; The ASA works closely with consumer organisations, The ASA works closely with consumer organisations,

government;government; Recourse for the public;Recourse for the public;

Chapter 9 BodiesChapter 9 Bodies

These Bodies can influence the conduct of the media;These Bodies can influence the conduct of the media; Some Chapter 9 bodies:Some Chapter 9 bodies:

Human Rights Commission; Human Rights Commission; Pan South African Languages Commission; Pan South African Languages Commission; Gender Commission;Gender Commission;

The MDDA is also a Statutory Body; The MDDA is also a Statutory Body; The industry is bound by the agreement it has signed The industry is bound by the agreement it has signed

with the Agencywith the Agency; ;

Other Bodies and ActsOther Bodies and Acts

The Competition Commission:The Competition Commission: Extensive powers of intervention; Extensive powers of intervention; ConcentrationConcentration of power in the hands of one of power in the hands of one

competitor;competitor;

Independent Communication Authority of South Africa Independent Communication Authority of South Africa (ICASA): (ICASA): Regulates broadcasting in the public interests; Regulates broadcasting in the public interests; Regulates the telecommunications industry;Regulates the telecommunications industry;

OWNERSHIP TRENDS AND OWNERSHIP TRENDS AND TRANSFORMATION TRANSFORMATION

Significant changes in the ownership, control and Significant changes in the ownership, control and composition within the mainstream print media industry composition within the mainstream print media industry since 1994;since 1994;

Some of the changes are:Some of the changes are:

1995:Independent News and Media bought the Argus Group;1995:Independent News and Media bought the Argus Group;

1995: Guardian Newspapers Limited became a majority shareholder 1995: Guardian Newspapers Limited became a majority shareholder in the in the Weekly MailWeekly Mail which was renamed which was renamed Mail and Guardian;Mail and Guardian;

1996: National Empowerment Consortium (NEC) acquired a 35% 1996: National Empowerment Consortium (NEC) acquired a 35% stake in Johnnies Industrial Corporation Limited from Anglo stake in Johnnies Industrial Corporation Limited from Anglo American, which included subsidiary Johnnic Communications;American, which included subsidiary Johnnic Communications;

OWNERSHIP TRENDS AND OWNERSHIP TRENDS AND TRANSFORMATIONTRANSFORMATION

1997:Independent Newspapers sold its share in 1997:Independent Newspapers sold its share in SowetanSowetan to New to New Africa Investment Limited (NAIL);Africa Investment Limited (NAIL);

1997:Allied Publishing restructured its shareholding to extend 1997:Allied Publishing restructured its shareholding to extend ownership and controlownership and control. . TheThe Sowetan Sowetan acquired one-third of the acquired one-third of the company;company;

1998:Johnnic Communications acquired total control of Times 1998:Johnnic Communications acquired total control of Times Media Limited;Media Limited;

1998:Caxton (36% owned by Johnnic Communications) bought 1998:Caxton (36% owned by Johnnic Communications) bought controlling interest in Perskor and merged with it;controlling interest in Perskor and merged with it;

OWNERSHIP TRENDS AND OWNERSHIP TRENDS AND TRANSFORMATIONTRANSFORMATION

2002:Trevor Ncube bought the majority share of the 2002:Trevor Ncube bought the majority share of the Mail and Mail and GuardianGuardian publishing company MG Media; publishing company MG Media;

2003: New entrant into the market, 2003: New entrant into the market, ThisDayThisDay, owned by Nduka , owned by Nduka Obaigena and partners;Obaigena and partners;

2004:The Competition Commission approved the acquisition by 2004:The Competition Commission approved the acquisition by Johnnic Communications of a controlling stake in New Africa Johnnic Communications of a controlling stake in New Africa Publications, owner of the Publications, owner of the SowetanSowetan and 50% of its sister publication, and 50% of its sister publication, Sunday WorldSunday World;;

Ownership Trends and TransformationOwnership Trends and Transformation

The impact of these changes have been profound;The impact of these changes have been profound; Shifted the print media industry from a completely white-Shifted the print media industry from a completely white-

owned to a more representative spread of:owned to a more representative spread of: Black and white owned or managed;Black and white owned or managed; Local and foreign interestsLocal and foreign interests..

This is best demonstrated in the following analysis of This is best demonstrated in the following analysis of urban and weekly newspapers sold in the country as urban and weekly newspapers sold in the country as measured by the Audit Bureau of Circulation (ABC);measured by the Audit Bureau of Circulation (ABC);

Table1: Ownership breakdown

Urban Daily Newspapers(January – June 2004)

Category Total Copies Sold %

Black Owned / ManagedForeign OwnedInstitution Owned

253,146

512,176627,797

18,2 %

36,8 %45,2 %

Total 1,393,119 100 %

Source: ABC Circulation Report 39, 2004

Table 2: Ownership breakdown

Urban Weekly Newspapers(January – June 2004)

Category Total Copies Sold %

Black Owned / ManagedForeign OwnedInstitution Owned

973,480

479,2901,317,574

35,1%

17.3 %47,6 %

Total 2,770,348 100 %

Source: ABC Circulation Report 39, 2004


There has also been transformation in the profile of the There has also been transformation in the profile of the editors of the major newspapers in the county;editors of the major newspapers in the county; Majority of the editors are black even where the Majority of the editors are black even where the

company is `white’ or foreign owned;company is `white’ or foreign owned; Gender remains untransformed – only 1 female editor Gender remains untransformed – only 1 female editor

– – Mail and GuardianMail and Guardian In magazines the picture is slightly different;In magazines the picture is slightly different;

Women, black and white, editors tend to dominate Women, black and white, editors tend to dominate this sector – particularly in women’s interest this sector – particularly in women’s interest magazines;magazines;


But the print media industry does recognize the the need But the print media industry does recognize the the need for further change and diversity;for further change and diversity;

To this effect it committed itself to promoting diversity To this effect it committed itself to promoting diversity and the growth of media through: and the growth of media through: the MDDA; the MDDA; its own internal development unit, the Print its own internal development unit, the Print

Development Unit (PDU);Development Unit (PDU);

Development and EmpowermentDevelopment and Empowerment

Many difficulties facing small print media organizations:Many difficulties facing small print media organizations: Historical imbalances;Historical imbalances; Lack of an enabling environment;Lack of an enabling environment; High barriers to entry;High barriers to entry; High attrition rateHigh attrition rate;;

The PDU was established to identify support The PDU was established to identify support mechanisms to help publishers in this sector;mechanisms to help publishers in this sector;

The unit was established in 2000;The unit was established in 2000; Funded by New Africa Publications, Independent Funded by New Africa Publications, Independent

Newspapers, Caxton, Media 24 and Johnnic Newspapers, Caxton, Media 24 and Johnnic Communications;Communications;


PDU developed a number of training programmes PDU developed a number of training programmes focusing specially on needs identified by emerging focusing specially on needs identified by emerging publishers;publishers;

Over 100 publishers and their staff participated in these courses; Over 100 publishers and their staff participated in these courses; PDU conducted extensive research into the sector and PDU conducted extensive research into the sector and

identified a range of problems:identified a range of problems: Skills shortages, lack of capital, insufficient Skills shortages, lack of capital, insufficient

advertising revenue, high printing and distribution advertising revenue, high printing and distribution costs;costs;

It proposed solutions; It proposed solutions; Information highlighted in publication:Information highlighted in publication:New Markets, New Markets,

New Readers, New Publishers, New Readers, New Publishers,


PDU was closed down once MDDA was established;PDU was closed down once MDDA was established;

MDDA is a critical intervention in stabilizing this sector MDDA is a critical intervention in stabilizing this sector so that a diverse media landscape can be sustained in so that a diverse media landscape can be sustained in the long run;the long run;

MDDA is a unique public private sector partnership – MDDA is a unique public private sector partnership – we have worked closely with government;we have worked closely with government;

Print media has made a considerable financial Print media has made a considerable financial contribution:contribution:

Independent Newspapers, Caxton, Media 24 and Johnnic Independent Newspapers, Caxton, Media 24 and Johnnic Communications – committed R24m over the next 5 years.Communications – committed R24m over the next 5 years.

Skills DevelopmentSkills Development

Development of skills remains critical to our industry;Development of skills remains critical to our industry; Pressure to produce quality content that speaks directly Pressure to produce quality content that speaks directly

to our readers;to our readers;

In 2002 South African National Editors Forum (SANEF) In 2002 South African National Editors Forum (SANEF) commissioned a skills audit which identified a number of commissioned a skills audit which identified a number of problems:problems:

Juniorisation of the newsrooms;Juniorisation of the newsrooms; Challenges of transformation;Challenges of transformation; Apparent lack of training;Apparent lack of training; Management within newsrooms;Management within newsrooms; Standard of practical teaching at some of the tertiary institutions;Standard of practical teaching at some of the tertiary institutions;


Report recommended greater contact between print Report recommended greater contact between print media and the training institutions –media and the training institutions –

Get a better understanding of the skills shortages;Get a better understanding of the skills shortages; Therefore respond more effectively to these.Therefore respond more effectively to these.

A number of print media companies have committed A number of print media companies have committed funds to support tertiary intuitions to address these funds to support tertiary intuitions to address these shortages:shortages:

Media 24 – R1m every year to a nationals schools newspaper Media 24 – R1m every year to a nationals schools newspaper programme (partnership with Stellenbosch University);programme (partnership with Stellenbosch University);

Johnnic Communications committed R4,6m to Rhodes University Johnnic Communications committed R4,6m to Rhodes University Department of Journalism and Media Studies;Department of Journalism and Media Studies;

Caxton funds the Caxton Chair at University of Witwatersrand; Caxton funds the Caxton Chair at University of Witwatersrand;


Companies are also doing in-house training – spending Companies are also doing in-house training – spending approximately 5% of their payroll on training;approximately 5% of their payroll on training;

Ongoing commitment and challenge in making sure we Ongoing commitment and challenge in making sure we meet the equity targets we have set;meet the equity targets we have set; Most companies have programmes in place;Most companies have programmes in place; Long-term process;Long-term process; Smaller companies often have difficulties in attracting Smaller companies often have difficulties in attracting

ad retaining equity candidates;ad retaining equity candidates;


Industry has established the Media Advertising Publishing Industry has established the Media Advertising Publishing Printing Packaging (MAPPP) SETA to which it also Printing Packaging (MAPPP) SETA to which it also contributes1% of its payroll to training;contributes1% of its payroll to training;

MAPPP SETA must play a critical role in skilling and reskilling MAPPP SETA must play a critical role in skilling and reskilling people working in this industry;people working in this industry;

The industry must continue to develop people with the skills: The industry must continue to develop people with the skills: to take advantage of the opportunities of empowerment;to take advantage of the opportunities of empowerment; meet workplace needs;meet workplace needs;

Promotion of printPromotion of print

Number of bodies have been establish to provide a Number of bodies have been establish to provide a service to media, marketing and advertising industries;service to media, marketing and advertising industries;

Single out 2 key bodies: Single out 2 key bodies: Help us understand our markets better;Help us understand our markets better; provide us with a currency to buy and sell advertising provide us with a currency to buy and sell advertising

space;space;

1. Audit Bureau of Circulation (ABC)1. Audit Bureau of Circulation (ABC)

Established 1947;Established 1947; Self- regulating auditing body;Self- regulating auditing body; Tripartite alliance between marketers, advertising Tripartite alliance between marketers, advertising

agencies and publishers;agencies and publishers; Audits and measures circulation figures of newspapers Audits and measures circulation figures of newspapers

and magazines;and magazines; Independent transparent currency;Independent transparent currency; Therefore both the buyers and sellers of print can be Therefore both the buyers and sellers of print can be

confident about the value of the titles they invest in;confident about the value of the titles they invest in; ABC releases verified circulation figures to market on a ABC releases verified circulation figures to market on a

quarterly basis;quarterly basis;

2. South African Advertising 2. South African Advertising Research Foundation (SAARF)Research Foundation (SAARF)

Established in 1974;Established in 1974; Provides on-going, comprehensive and reliable measure Provides on-going, comprehensive and reliable measure

of mass media and product usage –of mass media and product usage – Data helps Data helps

marketers and advertising agencies make decisions about the marketers and advertising agencies make decisions about the selection of media,selection of media,

Media owners sell advertising spaceMedia owners sell advertising space

Owned jointly by these three stakeholders – ensures that Owned jointly by these three stakeholders – ensures that

research is accepted and supported;research is accepted and supported; SAARF measures readership (AMPS, radio audiences SAARF measures readership (AMPS, radio audiences

(RAMS), television audiences (TAMS);(RAMS), television audiences (TAMS);

2. South African Advertising 2. South African Advertising Research Foundation (SAARF)Research Foundation (SAARF)

Latest four year tender has been awarded – jointly;Latest four year tender has been awarded – jointly; Shonigani Consortium;Shonigani Consortium; African Response;African Response;

SAARF has recently extended into Africa – formed the SAARF has recently extended into Africa – formed the Pan African Media Research Organization (PAMRO) to Pan African Media Research Organization (PAMRO) to promote media and conduct research there;promote media and conduct research there;

Circulation and Readership TrendsCirculation and Readership Trends

Print media has gone has gone through a difficult time Print media has gone has gone through a difficult time globally in the last 15 years;globally in the last 15 years;Circulation and advertising margins have been under Circulation and advertising margins have been under pressure from:pressure from:

Price hikes;Price hikes; Depressed consumer markets;Depressed consumer markets; Challenges from new media;Challenges from new media;

The print media in South Africa ha suffered similar The print media in South Africa ha suffered similar problems – problems – Steady decline of circulation figures in both newspapers Steady decline of circulation figures in both newspapers and magazines titles in the 1990’s;and magazines titles in the 1990’s;

Circulation and Readership TrendsCirculation and Readership Trends

This trend appears to be reversing;This trend appears to be reversing;

The latest ABC figures (January – June 2004) show that The latest ABC figures (January – June 2004) show that there is an increase in circulation across all the different there is an increase in circulation across all the different sectors of the print media;sectors of the print media;

There are also indications that this is taking place There are also indications that this is taking place globally -globally - According to the World Association of Newspapers -According to the World Association of Newspapers -

circulations are up and the long awaited advertising circulations are up and the long awaited advertising recovery is underway;recovery is underway;

Table 3: ABC Circulation Figures

January - June 2001

January - June 2004

%Increase

Urban Dailies (net sales)

1,224,770 1,463,398 + 19 %

Urban Weeklies (net sales)

2,357,037 2,845,017 + 21 %

Communities 333, 837 378,484 + 13 %

Verified Free Distribution

2,883,630 4,751,122 + 65 %

Magazines (net sales)

4,518,195 5,118,453 + 24 %

Mike Leahy, IBIS Media DATA Service, August 2004

Circulation and Readership TrendsCirculation and Readership TrendsNewspapersNewspapers

Urban Dailies have shown a growth of 19 % since 2001;Urban Dailies have shown a growth of 19 % since 2001; With a 14 % growth for the same period in 2003;With a 14 % growth for the same period in 2003;

Community Free Sheets have shown an enormous Community Free Sheets have shown an enormous growth of 65 % since 2002; growth of 65 % since 2002;

With a 11 % growth year on year;With a 11 % growth year on year; This is reflected in gross advertising investment in this This is reflected in gross advertising investment in this

category since 2001;category since 2001;

Circulation and Readership TrendsCirculation and Readership TrendsNewspapersNewspapers

The latest AMPS 2004 supports this growth in The latest AMPS 2004 supports this growth in newspapers:newspapers:

Newspapers readership is stable with daily newspapers Newspapers readership is stable with daily newspapers showing an upward trend;showing an upward trend;

The big success story is the daily newspaper sector The big success story is the daily newspaper sector remains the Daily Sun which continues its phenomenal remains the Daily Sun which continues its phenomenal growth;growth;

The paper’s readership has grown:The paper’s readership has grown: AMPS 2003B – 5.9 % to AMPS 2004 – 7.6 %AMPS 2003B – 5.9 % to AMPS 2004 – 7.6 % 2,292 million readers;2,292 million readers;

Circulation and Readership TrendsCirculation and Readership TrendsMagazinesMagazines

Net sales in magazines are up 24 % since 2001; Net sales in magazines are up 24 % since 2001; They show 13 % growth since the same period last year;They show 13 % growth since the same period last year; There is evidence of a move to more focused titles with There is evidence of a move to more focused titles with

male interest, youth and leisure categories gaining male interest, youth and leisure categories gaining strength;strength;

Although net sales are up this is a highly competitive Although net sales are up this is a highly competitive industry and a number of new titles have been launched industry and a number of new titles have been launched over the last five years;over the last five years;

In real terms this has meant some magazines have in In real terms this has meant some magazines have in fact lost circulation; fact lost circulation;

This following table illustrates this;This following table illustrates this;

Table 4: ABC Circulation Figures

January - June 2001

January - June 2004

%Increase

Magazines net sales

4,518,195 5,118,453 + 24 %

Number of titles monitored

81 130 + 60 %

Average title

55,780 39,373 - 29 %

Mike Leahy, IBIS Media DATA Service, August 2

Circulation and Readership TrendsCirculation and Readership TrendsMagazinesMagazines

The latest AMPS 2004 survey reveals that all magazines The latest AMPS 2004 survey reveals that all magazines readership has taken a knock;readership has taken a knock;

The AMPS Survey gives possible reasons:The AMPS Survey gives possible reasons: Lower than usual increases in household income Lower than usual increases in household income

(0.1% below CPI);(0.1% below CPI); Shifts in the population estimates – now proportionally Shifts in the population estimates – now proportionally

more men; more men; In general there are more women who read In general there are more women who read

magazines than men.magazines than men.

Table: Advertising spend in media

Total Adspend: Total all Media with Print SplitValue: SA Rands (Millions)

Media Jul/00 –

Jun/00SOV*%

Jul/03Jun/04

SOV%

Magazines 1,164 15 % 1,544 12 %

Newspaper 2,178 27% 3,639 29 %

Total All media

8,029 12,721

Source: Martin Venter, Nielsen Media Research, August 2004* Share of Voice

Table 8: Advertising spend in print

Total Adspend: Total Print by Group (12 months)Value: SA Rands (Millions)

Jul/02 –Jun/03

%Inc

Jul/03 –Jun/04

Consumer Magazines 1,054 9 % 1,153

Trade Magazines 245 7 % 263

Business % Technical 115 11 % 263

Daily Newspapers 1,688 10 % 1,861

Weekly Newspapers 815 18 % 959

Country & Free Sheet 487 68 % 819

Total Print 4,404 18 % 5,182

Source: Martin Venter, Nielsen Media Research, August 2004

Advertising TrendsAdvertising Trends

Gross advertising investment in print is 58 % since June 2001;Gross advertising investment in print is 58 % since June 2001; However, print’s share of voice has declined by 1 % according to However, print’s share of voice has declined by 1 % according to

figures released by Nielsen Media Research;figures released by Nielsen Media Research; These figures exclude These figures exclude

Classified, staff vacancies and property advertisingClassified, staff vacancies and property advertising

These account for a major portion of print adverting – These account for a major portion of print adverting – If these categories were included then print share of voice in If these categories were included then print share of voice in

advertising spend would be higher;advertising spend would be higher;

Ten years on into the new democracy these figures show that Ten years on into the new democracy these figures show that despite economic difficulties of the past years, print media is healthy despite economic difficulties of the past years, print media is healthy and vibrant;and vibrant;

ConclusionConclusion

There are a number of systems in place in the print There are a number of systems in place in the print media industry;media industry;

There are also a number of issues we are grappling withThere are also a number of issues we are grappling within particular:in particular:

Transformation, media diversity and skills development;Transformation, media diversity and skills development; We have implemented systems to address these issues;We have implemented systems to address these issues; We look forward to addressing you in the future on the We look forward to addressing you in the future on the

progress of our actions;progress of our actions; We remain committed to growing a vibrant and free We remain committed to growing a vibrant and free

press;press;

Thank you for this opportunityThank you for this opportunity

PRESENTATION TO THE PARLIAMENTARY PORTFOLIO COMMITTEE ON COMMUNICATIONS BY PRINT MEDIA SA AN...

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