Regional Newspapers - UK

ISSUES IN THE MARKET

Key themes

Definition

INTERNAL MARKET ENVIRONMENT

Key points

Multiplicity

Accessing the world

The connected consumer

The future will depend on the young

Figure 1: 11-19-year-olds who use the internet for newspapers/news, 2002-06

Local issues

The value of classifieds

BROADER MARKET ENVIRONMENT

Key points

Ageing population - good news for the present

Figure 2: Trends and projections in UK population (000s), by age group, 2002-12

Will today’s younger consumers keep reading?

Home delivery opportunities

Figure 3: Number of UK households, by size, 2002-12

Sheer pressure on time

Figure 4: Time spent on occupation per day by full-time workers, 2002 and 2006

Women at work

Figure 5: Working population by gender, 2002-12

An active housing market

Figure 6: Home buying indicators, 2002-12

COMPETITIVE CONTEXT

Key points

Issues common to regionals and nationals

Unceasing change

Media convergence

Access on the move

Threat of encroachment, from TV?

More than just news, current affairs and sports results

The oldest print medium holds its own

Figure 7: UK total sales of books, by volume and value, 2002-07

Magazines another contender

Figure 8: UK retail sales of magazines, by value, 2002-07

Spending priorities

Figure 9: Breakdown of total consumer expenditure, 2006

STRENGTHS AND WEAKNESSES IN THE MARKET

Strengths

Weaknesses

MARKET SIZE AND FORECAST

Key points

Revenue sources

Copy sales and circulation

Figure 10: Annual circulation of paid-for and free regional newspapers, by volume, 2002-07

Figure 11: Annual indexed sales of paid-for and free regional newspapers (base year 2002), by volume,

2002-07

Data limitations

Sales losses

The paid-for sector: advertising revenues

Figure 12: Regional newspaper advertising revenue, by type of advertisement, at current prices, 2002-07

Adsales resilient

The importance of classified

Figure 13: Regional newspaper classified advertising revenue, by type, 2003-07

The return of the recruiters

A few brief points

The future of the market

Figure 14: Forecast of the UK regional newspaper market, by volume, 2002-12

Figure 15: Annual indexed sales a nd forecast of the UK regional newspaper market, by volume, 2002-12

Factors incorporated in the forecast

SEGMENT PERFORMANCE

Key points

The structure of the regional press

Figure 16: Actual number of free and paid-for titles, 2002-07

Paid-for and free titles

Figure 17: Total number of regional newspaper titles, grouped by type, 2002-07

Publishing frequency

Where competition bites hardest

Circulation by type

Figure 18: Circulation by type, 2005 and 2007

Circulation increases for the few

Frees are one way forward

MARKET SHARE

Key points

SALES OF LEADING PAID-FOR TITLES

Recent circulation trends

Figure 19: Top daily paid-for titles, by circulation, January-June 2005-07

Some observations

The Manchester Evening News

The Evening Standard

Concentration of ownership

Figure 20: Top ten regional newspaper publishers by circulation, July 2005 and July 2007

Three major changes

Titles and circulation

Figure 21: Summary of circulation and title distribution*, by publisher, 2007

Changes in circulation and titles

Figure 22: Total top ten UK regional newspaper publishers’ number of titles and weekly circulation, July

2005 and 2007

The ups and downs

COMPANIES AND PRODUCTS

Trinity Mirror

Newsquest Media

DMGT

Associated Newspapers

Northcliffe Media

Johnston Press

Archant

Guardian Media Group

News International

Midland News Association

DC Thomson

BRAND COMMUNICATION AND PROMOTION

Key points

Promotion slump

Figure 23: Main monitored media advertising expenditure by regional newspapers, 2003-07

The importance of TV

Figure 24: Proportion of main monitored media advertising expenditure on regional newspapers, by

medium, 2003-07*

The largest spenders above-the-line

Figure 25: Leading advertisers, 2005-07

Regional or national?

Moving away from above the line

CHANNELS TO MARKET

Key points

Distribution pattern

Figure 26: Volume circulation* of regional newspapers, by type of outlet, 2005 and 2007

The paid-for element

Traditional strength of the newsagent

The grocery trade

Reaching the reader

The new model

Issues for the future?

THE CONSUMER - READERSHIP HABITS AND ATTITUDES

Key points

Attitudes to local media and advertising

Figure 27: Agreement with selected lifestyle statements, 2003-07

Local newspapers and the Internet

The value of advertising

Figure 28: Views of advertisements on websites, July 2004 and May 2007

The value of online ads

Children’s views of newspapers

Figure 29: Agreement with selected lifestyle statements, 7-10s and 11-14s, 2002-06

Children now and in the future

Figure 30: Type of newspaper regularly read, 2003-07

Growth of the frees

Readership in brief

Figure 31: Regular newspaper readership, July 2007

Profile of readers

How much does readership vary

APPENDIX

Advertising data

Abbreviations

Internal market environment

Figure 32: TV viewing in UK households, 2002-06

Figure 33: Used the Internet at home or elsewhere in the last 12 months, 2003-07

Figure 34: Used the Internet at home or elsewhere in the last 12 months, by demographic sub-group, by

demographic sub-group by gender, age, socio-economic group, marital status, lifestage, presence of

children, mintel’s special groups, working status, tenure, region, ACORN category, media usage,

supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, 2007 . 56

Figure 35: Frequency of using the Internet, 2003-07

Figure 36: Websites browsed for information purposes in the last three months, Nov 2002-July 2007

Segment performance

Figure 37: Total number of regional newspaper titles, by type, 2002-07

Market share

Figure 38: Circulation distribution summary, by publisher and type, 2007

Figure 39: Title distribution summary, by publisher and type, 2007

Figure 40: Top ten regional newspaper publishers’ market share of paid & free daily titles, July 2007

Figure 41: Top ten regional newspaper publishers’ market share of weekly paid-for titles, July 2007

Figure 42: Top ten regional newspaper publishers’ market share of weekly free titles, July 2007

Brand communication

Figure 43: Main monitored media advertising expenditure on regional newspapers, by medium, 2003-07*

The consumer - Readership habits and attitudes: Detailed demographics

Figure 44: Agreement with selected lifestyle statements, by demographic sub-group, by demographic subgroup

by gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special

Groups, working status, tenure, region, ACORN category, household size, car usage, detailed lifestage,

2007

Figure 45: Agreement with selected lifestyle statements, by demographic sub-group, by demographic subgroup

by gender, age, socio-economic group, marital status, lifestage, age of children, Mintel’s Special

Groups, working status, tenure, region, ACORN category, household size, car usage, detailed lifestage,

2007

The consumer - attitudes and motivations: Detailed demographics

Figure 46: 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 47: 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 48: 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 49: Regular newspaper readership, 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 50: 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 51: 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 52: 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 53: 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 54: 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 55: 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 56: 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 57: Attitudes to 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 58: Attitudes to 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 59: Attitudes to 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 60: Attitudes to 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

Further analysis - Repertoire analysis detailed demographics

Figure 61: Repertoire analysis, 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: Repertoire of newspapers read, by important factors when choosing a paper, July 2007

APPENDIX: RESEARCH METHODOLOGY