Australian newspapers are well placed to take advantage of the burgeoning consumer take-up of digital platforms, a new report claims.
The State of Australian newspapers 2011 report published by Newspaper Works, shows advertising revenue growth from digital newspapers in Australia (up 236% from 2006 to 2010) has outstripped ad revenue growth on the internet (up 100% from 2006 to 2010) in Australia.
It forecasts that Australian newspapers are set to generate $317 million (up 11% compared with 2011) in digital ad revenue in 2012, according to the PwC Australian Entertainment & Media Outlook 2011-2015 report, released earlier this month.
Now delivered across print, online, tablets and smart phones, newspapers in this country continue to set the daily news agenda more than any other medium. This contrasts to their counterparts in the US and the UK, where cable TV and the BBC respectively command the news every day.
The report also found that seven of the top 10 news websites in Australia are owned by newspaper publishers, while it's estimated that more than one million newspaper branded apps have now been downloaded.
CEO of The Newspaper Works, Tony Hale, said: “This latest report into the health of the Australian newspaper industry shows a robust future lies ahead, and one for which newspapers in this country are successfully transforming themselves to take maximum advantage.
“Australian consumers have enthusiastically embraced newspapers delivered via digital platforms, and this, coupled with Australia's unique structural advantages compared with other markets, paves the way for the solid future growth.
For years, there has been concerns about the future of print, particularly in the newspaper industry, however Fairfax Media's chief executive, Greg Hywood, believes we need to stop focusing on this doubt and concentrate on the execution of newspapers across multiple mediums including print, online and on different devices.
In an interview with The Age, Hywood said the death of many US newspapers did not foretell the death of Australian operations, because, unlike their American counterparts, Fairfax and News Ltd had captured market-leading positions in online news.
“The ability of companies such as Fairfax and News Ltd to command readers' attention throughout the day using print, smart phones on the way to work, online at work, video during lunch, smart phones on the way home and tablets after work meant the industry had a compelling proposition, one the industry needed to do more to sell,” quoted The Age.
Printed newspaper ad revenue in 2010 reached $3.665 billion, with an additional $259 million in digital newspaper advertising revenue, according to survey and PwC figures.
When search directories and classifieds are removed from ad revenue, printed newspapers' share of ad revenue has remained stable over the past five years at around 27%. In 2010, total display advertising revenue grew 6.5% to $2.556 billion, survey data found.
Have something to say? Send us your comments using the form below or contact the writer at erinsmith@yaffa.com.au
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.