- My first year in newspapers

“My first year in newspapers”

Simon Fox Chief Executive Trinity Mirror

UK newspapers – strong and resilient Core strengths…

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Quality of journalism – Distinctive content remains key to attracting audience

– Newspapers remain the core outlet of professional journalism

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UK newspapers – strong and resilient •

Significant reach and engagement – Whilst print newspapers are in gradual decline, they still reach 72% of UK adults

Notes: (1) Aged 4+ per BARB; (2) Aged 15+ per NRS or RAJAH; (3) Info extracted from CBS Outdoor and Clear Channel websites, base not specified

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UK newspapers – strong and resilient •

Delivering a highly targeted audience

– Print brands have a clear differentiated positioning and distinctive audiences – We have in-depth insight into our readers – their lives, their behaviour and their expectations Source: Enders Analysis – National newspapers Print and digital audiences 3 April 2013 (NRS PADD data)

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An industry facing extraordinary rates of change •

Explosion of smart phones and tablets

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User generated content

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Aggregation

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Personalisation

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Social media

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And adapting fast… •

Rapid and continuous levels of innovation

– Adoption of technology – Evolving ad formats – Content–led advertising – Digital revenues starting to mitigate decline in print

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But with some surprising legacy behaviour… •

Inefficiencies in ad booking process – Multiple points of contact

– Costly and inefficient •

Inefficiencies in providing accurate / timely circulation data – Print – Digital

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Need for robust and consistent language to describe our cross-platform audience Take the Daily Mail as example Print Monthly

Website & mobile site “Real –time”

6 monthly Print UUs x pagination

Print language

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Digital equivalent?

Source: ABC, NRS; Note: Assumed average pagination of 90 for Mon-Sat Daily Mail

NRS PADD provides a good starting point •

NRS PADD (“Print And Digital Data”) – First industry-wide cross platform data combining NRS print data and comScore digital data (web only) – Provides unduplicated reach of a print publication and its website – However: Currently does not incorporate mobile and tablets data Primarily National titles, limited regionals data

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We need a robust and consistent way of measuring our cross platform audience

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No single right answer E-editions? Tablets? Mobile?

Paywall vs Free? Subscription vs Ad funded? Leveson?

PADD vs ABCe?

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We have started to address the legacy issues… In advertising: •

Organised our national ad sales function into nasa (national advertising sales agency)

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Launched “The National” – single ad package comprising multiple daily titles across various regional publishers to achieve national scale

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We have started to address the legacy issues… In circulation: •

Regionals – Reporting ABC circulation data for our core regional paid daily titles on a monthly basis from H2 2013

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Nationals – Open to sharing our circulation data on a more timely / frequent basis should advertisers require

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Digital – while NRS PADD may be a good starting point, need to incorporate tablet, mobile and regionals data

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In print, we remained focused on driving circulation •

For eight consecutive months the Daily Mirror has outperformed the popular national dailies market

Circulation per issue – yoy %

Note: (a) Market comprised Daily Mirror, Daily Record, Sun, Daily Mail, Daily Star and Daily Express Source: ABC Jan 11 to Feb 13

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Implementing portfolio initiatives • • •

Positioning our brands at the heart of the business Increasing relevance of our portfolio to drive audience, extend reach and generate revenue growth Portfolio development initiatives: – Product redesign – Extending targeted reach through hybrids – Editionisation – Weekend editions

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Recently launched the Paperpay app •

Making it easy for consumers to purchase

– Launched PaperPay app in March – Allow people to buy copies of the Mirror and Sunday Mirror newspaper through the use of a barcode voucher on their smartphones

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Accelerating our digital capabilities Our audience increasingly adopts new technologies and becomes multi-platform

Print

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Tablet

Web

Mobile

Off Network

Our Daily Mirror and Daily Record iPad e-editions are free to download •

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E-editions of Daily Mirror and Daily Record launched for iPad. Android versions planned for Q2 2013 – Total downloads from Apple: 120k Business model and pricing strategy to vary by title based on audience demographics and market positioning of our brands – Free: Daily Mirror (Mon-Fri), Daily Record (Mon-Fri), some regional titles – Paid: larger regional titles with strong market penetration, business focus titles

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Some early insights into our e-edition readers Long reading time

Average time spent reading of 30 min – slightly behind print edition (33 min) but well ahead of any website site average time spent

Offers strong incremental reach to advertisers

Two-thirds of our readers do not read any other newspaper apps – offering strong incremental reach and unique user opportunities for advertisers

Attractive advertising demographic

More ABC1 than our print demographic, but a little less than the tablet market as a whole

High engagement translating directly into action

Nearly half of all readers have clicked on an ad within the app

Source: based on 4,200 responses, equating to 1/3 of our daily average number of readers

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Our websites remain free to access •

Enhanced image galleries and video; comprehensive What’s On guides; weather; traffic and travel; quizzes and elements of news personalisation

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Encouraging progress in growing audience and engagement – Mirror Online page views up 62% yoy in March 2013

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About a quarter of our digital traffic is now via mobile •

Mobile usage already accounts for 25% of our monthly digital traffic and we believe this to grow rapidly in the next three years

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Similarly we are making good progress in growing mobile audience and engagement

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Mirror mobile page views up 61% in March 2013

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In summary •

UK newspapers remain strong and resilient

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Continuously experiment, adapt and change

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There is no one-size-fits-all strategy

Distinctive content

Scale audience

Value for advertisers

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