Transcription
Communications IndustrySpending & Consumption TrendsJohn Suhler
Overview of VSS Verticals thatcomprise theVSS Communications Industryy2
Communications Industry VerticalsInformation Professional Information & Services Business Information Services Business ServicesEducation K-12 Materials and ServicesCollege Materials and ServicesFor Profit SchoolsCorporate TrainingMarketing Services Targeted MediaPromotionAgenciesCustom PublishingPR and Word-of-MouthDirect MarketingTradeshows and EventsInternet (Search & Advertising)Mobile Advertising and ContentDigital Out-of-HomeSubscription TV (Cable &Satellite Television) Advertising B2B Magazines Traditional MediaEntertainment 3Film & TV ContentMovie TheatersMusicVideogamesCable & Satellite Television NewspapersTVRadioYellow PagesConsumer Magazines
Representative Companies Comprising VSS VerticalsI fInformationti4EdEducationtiMarketing ServicesTargeted MediaEntertainmentTraditional Media
Industry Spending by VerticalI fInformationti( Millions)( Millions) 400 300 300 249 200 100 113 02004 168 020092004 712009IndustrySpending 772014‘04‘09‘14( Millions) 879 1,054 1,416% of GDP7%7%8% 354 300 100 0 203 26110 yr CAGR:GDP: 4.7%COMM Industry:4.9%20092014Source: VSS Communications Industry Forecast 20105 266 200 152 100 02004 18720092014Traditional Media-1.0% 176 100 020042014 300 200 4002009( Millions)( MilliMillions))( MilliMillions)) 224Targeted MediaEntertainment 20020042014 100 0 165 100( Millions) 71 311 200Marketing Services 50EdEducationti 143 15920%shareh14%shareh11%shareh200420092014
Communications IndustryyGrowth Trends6
Communications Spending vs. GDP IndustryIndustry-widewide spending on communications has well outpaced GDP– 2% incremental annual growth due to expanding platforms and increasing consumer engagementCommunications Industry Spending vs. Nominal GDP Index(indexexed to 100)Communications Industry SpendingNominal GDP35 Year CAGRsComms.Spending 8.4%NominalGDP 6.5%(indexed to 1000)Time Spent with Media Index7Time Spent with ConsumerMedia Per PersonSource: VSS Communications Industry Forecast 2010, VSSCommunications Industry Historical Database 1975-2010Time SpentwithConsumerMedia 0.5%
Time Spent with Consumer MediaTime Spent with Consumer Media: Hours per Person per Year8Source: VSS Communications Industry Forecast 2010, VSSCommunications Industry Historical Database 1975-2010
Time Spent OnlineConsumerMediaTime Spent Online with Consumer and Institutional Media400Total Time Spent OnlineHours peer Person pper Year350At HHome anddSSchoolh l300250Time Spent Online10.5% of Total TimeSpent with MediaAt WorkTime Spent Online4.0%40% off TotalT t l TimeTiSpent with 32004200520062007200820092010E*Internet and mobile use of traditional media (such as downloaded music, newspaper websites or info alerts, e-books, cable modems, online video of TV programs and internetradio) was included in the traditional media segment, not in pure-play internet or mobile content. Pure-play internet and mobile services includes telecommunications access(such as DSL and dial-up, but not cable modems), pure-play content (such as eHarmony, GameSpy and MobiTV), and mobile instant messaging and e-mail alerts.Source: VSS Communications Industry Forecast 20109 Broadcast TV andRadio Cable & Satellite TV Pure-play Internet* Newspapers Recorded Music Out-of-Home Consumer Magazines Videogames Consumer Books Home Video and InFlight Entertainment PurePure-playplay Mobile Box Office Yellow Pages Educational Books Professional &Business Information Training & For-ProfitEducation Business to Business: Magazines Tradeshows,Conferences &Seminars E-media Business-related: E-mails, instantmessaging and textmessaging Online and mobilesearch B-to-B e-commerceand m-commerce
Spending on Pure-Play Internet and Mobile Advertising Resilience in search spending and strong growth in video and social media offsetdeclines in classifieds and display( billions)billi )Pure-Play Internet and Mobile Advertising Spending 50.0 45.0Pure-Play Internet Advertising 40.0 35.0 30.0 25.0Pure-Play Mobile AdvertisingTotal Pure-Play Internet andMobile Advertising 20.0 15.0 10.0 5.0 0.010Source: VSS Communications Industry Forecast 2010, VSSCommunications Industry Historical Database 1975-2010
Consumer Media Spending & Industry Spend as a % of Disposable Income Consumer end-userend user media spending per household has grown rapidly since 1975– Consumer media spending now represents approximately 2% of disposable incomeConsumer Media Spending per Household and as % of Disposable Income 2,4002.3%Consumer Media Spending as a% of Disposable Income-------Doubled in 35 years 1,6002.0%1.7%1.4% 1,200Consumer Media Spendingper Household ( )-------10x bigger in 2010 than itwasas in 19759 5 800 400 00.8%0.5%1975111.1%198019851990Source: VSS Communications Industry Forecast 2010, VSSCommunications Industry Historical Database 1975-20101995200020052010E((% of disposabble income)( spent peer household) 2,000
Communications Spending by Industry Traditional Consumer Advertising has lost substantial market share– Both Entertainment & BIS have expanded, while Education & Training has contracted as a % of total( millions) 1,200,000 1,000,000Total Communications Spendingpg byy Industryy% of Total:19752010Industry SectorsTraditional Consumer Ad 9%7%16%228%8%6%-25%18%128%Entertainment & Leisure 800,000Education & TrainingBusiness Information & Services 600,000MarketingTTargetedd 400,000 200,000 00,00014% 0197512198019851990Source: VSS Communications Industry Forecast 2010, VSSCommunications Industry Historical Database 1975-20101995200020052010 E
VSS Communications Industry Forecast Please contact John Suhler at suhlerj@vss.comsuhlerj@vss comfor more information about this presentation andfor access to our newsletter More information about the VSSCommunications Industry Forecast can be foundat www.vss.com/forecast To order your copy today, visitwww.vss.com/orders As an industry research leader for over 25 years,VSS publishes and distributes various forecastsandd reportst highlightinghi hli hti ttrendsd andd projectionsj tiincluding the VSS Communications IndustryForecast and the VSS Communications IndustryHistorical Database– 13This research informs not only investmentdecisions but enables performance monitoringof portfolio companies compared to peergroups6 Industry Sectors4 Revenue Streams20 Segments100 SubSub-SegmentsSegments395 Charts and Graphs
Marketing Services Targeted Media 113 0 100 2004 2009 2014 165 0 100 2004 2009 2014 Industry Spending 71 71 77 50 100 ( Millions) 152 187 266 100 200 300 ( Millions) % of GDP ( Millions) '04 879 7% '09 1,054 7% '14 1,416 8% 10 yr CAGR: Entertainment Traditional Media 0 2004 2009 2014 0 2004 2009 2014 ( Milli .
