Roland Berger study on the future of print media in the digital age: "There's life in the old dog yet"

Despite all claims to the contrary, the market for print media is still alive and kicking. Although the average circulation for all daily newspapers has decreased by nearly 20% over the past few years, there are notable exceptions. German newspapers such as the "Süddeutsche Zeitung" and "Die Zeit" managed to defy this trend, increasing their circulation by several percentage points. According to a study titled "There's life in the old dog yet" by consulting firm Roland Berger Strategy Consultants, print media can grow despite digital competition if they apply various success factors.

First, they need to define their target group as precisely as possible, then rigorously align themselves to that group in terms of topics, language, design and sales. Special attention in this process should be paid to premium users, who are prepared to pay for print products and are also most attractive in terms of advertising. In addition, there are numerous special interest niches that continue to offer attractive revenue potential.

Print media can counterbalance its obvious disadvantages in staying up-to-the-minute through its traditional strengths: setting agendas, publishing opinion pieces, providing background information and context as well as offering a quality reading experience through optical and tactile pleasures. Besides book and CD/DVD series, additional business can be generated through events, such as discussion groups, conventions, seminars, conferences, concerts, festivals and trips.

"Even if multimedia competition with TV and Internet becomes increasingly tough, print media have their own unique strengths," says Alexander Mogg, Partner in the InfoCom Competence Center at Roland Berger Strategy Consultants. "Publishers now have to set the strategic course for the next five to ten years."

Concentrating on print media's strengths

Magazines and newspapers will be able to achieve lasting success in multimedia competition only if they really know their target groups and focus on the inherent strengths of print publications. "We see growth potential in the premium reader segment and in other niches," says Mogg. "The ability to fill a niche, strengthen the brand and improve competence in innovation will be the decisive factors." Rigorous orientation toward the target group and the alignment of the medium, the reader market and advertising strategy as part of an overall publishing concept have a positive effect on sales. That's because premium customers are ready to pay good money for high-quality offers. And premium customers are especially attractive to advertisers. "Especially for image ads and premium segments, print media will continue to be an attractive environment in spite of online competition," says Mogg.

Print media have clear strengths – such as the optical and tactile pleasures that are missing from online media – in spite of the latter's greater dynamic and immediacy. Yet a print newspaper also has advantages in terms of content: Readers can consciously set aside time in their day to enjoy reading, plus print products offer more space for agenda setting, background/context and opinion. Nevertheless, it would behoove editorial staff to create synergies for both forms in which the same content is used for print and online editions. Traditional potential for cost cutting has already been largely exhausted.

Brand support helps to acquire new customers and increase customer loyalty

Young people especially need to be introduced to print media. Investing in brands therefore pays off, because strong brands are becoming more and more important in an increasingly diverse media landscape. Possible ways to do this include "worlds of experience" and events such as conventions, seminars and trips. They not only spark interest, but also represent the next level for profitable sidelines after the first generation of tie-in product business from CDs, DVDs or wine collections.

"The media market will remain dynamic," summarizes Mogg. "If publishers are ready to make changes and experiment with new offers, they will be able to maintain their position in this market or even expand it."