Global Scene: Digital Publishing Opportunities Poised to Take Off Worldwide
The webinar highlighted data from the recently-released World Digital Media Factbook, which provides an overview of global digital media usage and revenue trends.
Global revenue growth in mobile usage, app and in-app purchases, social media and online subscriptions demonstrate conclusively that "there is money in digital," Martha Stone, CEO of World Newsmedia Network, said.
Not surprisingly, the most significant growth for any global advertising segment in the last five years has been in the wired and mobile Internet space. Citing a chart from the PwC Global Entertainment and Media Outlook, Stone said total percentage Internet advertising gains over the next four years are expected to average 15.9 percent.
Global in-app purchase revenues are expected to jump to $5600 million by 2015, from $970 million in 2011, Stone said, and total digital and mobile revenues for magazines to approach $2.5 billion, approximately doubling their current total.
Mobile ad revenues represented only 2 percent of the share of Internet ads in 2007. In 2012 that percentage has jumped to 8 percent, and projections call for that share to be 13 percent by 2016. Conversely, Internet classified ads are projected to decline to 14 percent of total share by 2016, down from 22 percent in 2007, while search advertising will hold steady.
More evidence for growth in mobile comes from World Newsmedia Network data estimating Internet access via mobile phone has doubled in the past year, from 9 to 18 percent. The largest percentage of smartphone users accessing the Internet through mobile in 2011 were seen in China, Sweden, Japan, South Korea and South Africa—all eclipsing the U.S.'s rate of 50 percent.
Internet access through tablets was projected to go from 2 to 14 percent in the last year, as the percentage of people accessing content through PCs and laptops fell from 74 to 47 percent. This has significant implications for content monetization that global companies are poised to capitalize on, Stone noted, saying the percentage of revenue from content sold on tablets going to non-U.S. companies is expected to skyrocket in the next eight years.
Within this trend is some potential good news for publishers: a survey of global users on where they prefer to buy tablet apps found fully a quarter of respondents prefer to buy direct from publishers. (Unsurprisingly, iTunes, Amazon and Google topped this list.)
Stone stressed that the pace of change requires publishers to make strategizing for the explosion of global mobile use a priority.
"It's very important for all of us to move quickly, and involve change agents in our organizations so we can seize these opportunities"