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Print Media

© 2017 Beyond Summits 1

2 2 2

© 2017 Beyond Summits

Summary：

• According to statistics, from 2011 to 2016, with the increasing penetration of digital media, the

reading rate of Chinese newspapers continued to decline, falling to 39.7% in 2016, and the

overall reading rate of periodicals also decreased.

• In recent years, the sharp decline in China's traditional newspaper industry has continued, and

the total retail sales of various newspapers across the country have further declined. The

double decline in the number of traditional newspapers and periodicals readers and advertising

revenue has made it difficult for newspapers and magazines to operate in recent years. From

2006 to 2016, the number of Chinese newspapers has declined year by year, dropping to

1,894 in 2016.

• In 2016, magazine advertising revenue and advertising space continued to decline, and the

decline was higher than that of 2015.

3 3 3

9,468 9,468 9,549 9,851 9,884 9,849 9,867 9,877 9,966 10,014 10,084

1,938 1,938 1,943 1,937 1,939 1,928 1,918 1,915 1,912 1,906 1,894

0

2,000

4,000

6,000

8,000

10,000

12,000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

The Number of Periodicals & Newspaper Published

Periodicals Newspaper


Source: China's National Bureau of Statistics

From 2006 to 2016, the number of Chinese newspapers has declined year by year, dropping to

1,894 in 2016. On the contrary, the number of periodicals has increased slowly, reaching 10,084 by

2016.

4 4 4

Source: CTR Market Research

53.9%

49.6%

42.6%

37.8%

32.8%

25 24

21

19

17

0

5

10

15

20

25

30

0%

10%

20%

30%

40%

50%

60%

2012 2013 2014 2015 2016

Newspaper’s Daily Reach Rate and Average Daily Reading Time among Urban Residents

Daily Arrival Rate Average Daily Reading Time (min)


In 2016，newspaper’s daily reach rate and average daily reading time among urban residents

both decreased compared to 2015, reaching 32.8% and 17 minutes respectively.

5 5 5


25.5

44.4

15.7 14.4

24.2

44.6

14.1 17.0

24.7

42.7

12.7

19.9

0

5

10

15

20

25

30

35

40

45

50

First-tier City Second-tier City Third-tier City Fourth-tier City

Newspaper’s Daily Reach Rate among Urban Residents in Different Cities (%)

2014 2015 2016


Newspaper’s daily reach rate among the urban residents in first-tier, second-tier, and third-tier

cities declined from 2014 to 2016. However, it showed a growth trend in fourth-tier cities.

6 6 6


31.5

23.5 22.4 22.6

30.6

21.4 22.5

25.6 25.1

21.8 23.8

29.4

0

5

10

15

20

25

30

35

<30 years old 30-40 years old 40-50 years old >50 years old

Newspaper’s Daily Reach Rate among Urban Residents of Different Ages

2014 2015 2016


From 2014 to 2016, the newspaper’s daily reach rate among middle-aged and elderly urban

residents continued to rise. In addition, the proportion of people reading newspapers daily is also

positively correlated with age.

7 7 7

Source: Chinese Academy of Press and Publication

41.3% 45.2%

38.3% 40.3%

34.6%

26.3%

63.1%

58.2%

52.7% 55.1%

45.7%

39.7%

0%

10%

20%

30%

40%

50%

60%

70%

2011 2012 2013 2014 2015 2016

Reading Rate of Periodicals & Newspaper in China



According to statistics, from 2011 to 2016, the reading rate of Chinese newspapers continued to

decline, falling to 39.7% in 2016, and the overall reading rate of periodicals also decreased.

8 8 8



In 2016, the average reading time of Chinese newspapers and periodicals decreased significantly

to 13.15 minutes per day and 6.61 minutes per day, respectively.

11.80 13.19

10.05

13.42

8.83

6.61

22.00

18.91

15.50

18.80

17.01

13.15

0

5

10

15

20

25

2011 2012 2013 2014 2015 2016

Reading Time of Periodicals & Newspaper in China (minute per day)


9 9 9



In the first half of 2017, the expenditure on traditional media advertisements dropped significantly,

and the paper media saw the strongest decline. Among all paper media, newspapers fell most,

with a drop of 30.5%, and magazines also dropped by more than 20%.

The Growth of China’ s Traditional Media in 2017 H1

Traditional media Year-on-year Growth of Ad Publishing Fees

TV -3.6%

Radio 9.2%

Newspaper -30.5%

Magazine -23.4%

OOH -2.7%

10 10 10

With the following advantages, newspaper still takes a leading role in the media market:

• The authenticity of news and credibility of publisher make

newspaper highly authoritative and trustworthy.

• Easy to carry, lower price and the reprocess of news and

information, all of the above make newspaper surpass other

media.

• Some readers have formed a habit of acquiring news through

reading newspaper, which is hard to change in a short time.

• Newspapers have a large circulation and a wide range of

coverage, reaching the whole domestic market.

Newspaper also has its own disadvantages:

• Monotony in format, lack of flexibility and novelty.

• Barely any certification on the authentic circulation.

• The authenticity of news and credibility of publisher make

newspaper highly authoritative and trustworthy.

• Easy to carry, lower price and the reprocess of news and

information, all of the above make newspaper surpass other

media. Some readers have formed a habit of acquiring news

through reading newspaper, which is hard to change in a short

time.


11 11 11



3.01

2.70

2.21 2.01

1.71

0

1

2

3

4

2013 2014 2015 2016E 2017E

China’s Paper Consumption in Newspaper (million ton)

From 2013 to 2017, the paper consumption of the national newspaper industry continued to

decline, and it was expected to fall to 1.711 million tons by 2017. In general, the paper

consumption reflects the sales of newspapers.

12 12 12

Source: Huawen Group, Social Blue Book 2016


Under the overall unfavorable background, the overall retail circulation of newspapers in China fell

by 46.5% in 2015, marking a lowest record in recent years.

30.97 30.07

27.40

24.51

20.40

15.69

9.86 9.49

-2.9%

-8.9% -10.6%

-16.7%

-23.1%

-37.2%

-19.9%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

0

5

10

15

20

25

30

35

2012H1 2012H2 2013H1 2013H2 2014H1 2014H2 2015H1 2015H2

Overall Retail Circulation of Newspapers（million）

Average sales Growth rate

13 13 13

Source: Huawen Group


From 2013 to 2015， the retail circulation of urban newspaper declined sharpest. Political

newspaper, financial newspaper, IT newspaper and China Communist Party newspaper gradually

dominate the newspaper market, taking the place of urban newspaper.

72.34% 66.84%

56.60%

15.20% 19.91%

26.58%

4.35% 5.03% 7.10%

8.11% 8.22% 9.72%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015

Retail Circulation of Different Categories

Urban Newspaper Political Newspaper Financial Newspaper IT Newspaper & China Communist Party Newspaper

14 14 14

Source: Askci.com


Ranking Name Circulation（’000）

1 Can Kao Xiao Xi 3,500

2 People's Daily 2,800

3 Global Times 2,400

4 Yangzi Wanbao 2,200

5 CNTV Dianshibao 2,000

6 Guangzhou Daily 1,850

7 Titan Sports 1,600

8 Nanfang Metropolis Daily 1,600

9 Qilu Evening News 1,500

10 XXSB 1,480

11 Southern Weekly 1,400

12 Chutian Metropolis Daily 1,300

13 Beijing Evening 1,200

14 XMWB 1,200

15 JLWB 1,200

Ranking Name Circulation（’000）

16 YCWB 1,170

17 WMG 1,150

18 XKB 1,130

19 Chengdu Economic Daily 1,120

20 Yanzhao Metropolis Daily 1,000

21 Dushi Kuaibao 950

22 QianJiang Evening News 950

23 Dahebao 950

24 Tonight News Paper 910

25 Bandao 900

26 Chinese National Geography 900

27 Nanfang Daily 850

28 LiaoShen Evening News 830

29 Beijing Times 830

30 Wuhan Evening News 800

China’s Newspaper Circulation in 2014

15 15 15



Since 2012, the rapid development of the domestic Internet has drastically slowed down the

development of the traditional newspaper industry, and the sales volume of newspaper advertising

has gradually dropped to 22.75 billion yuan in 2015, a 35.4% decrease from the previous year.

37.1

43.9

48.7

45.1

41.4

35.2

22.8

8.1%

18.5%

11.0%

-7.5% -8.1%

-15.0%

-35.4%

-40%

-30%

-20%

-10%

0%

10%

20%

30%

0

10

20

30

40

50

60

2009 2010 2011 2012 2013 2014 2015

China’s Newspaper Ad Revenue(billion yuan)

Ads revenue Growth rate

16 16 16


-37.9%

-40.7% -41%

-41%

-40%

-40%

-39%

-39%

-38%

-38%

-37%

-37%

2015 2016

Growth Rate of Newspaper’s Advertising Area


In 2016, the revenue of newspaper’s ads and advertising area continued to decline, and the

decline was higher than that of 2015.

-35.3%

-38.7% -39%

-38%

-37%

-36%

-35%

-34%

-33%

2015 2016

Growth Rate of Newspaper’s Ads Revenue in 2015-2016

17 17 17


In 2016, the industry that spent the most on newspaper advertising was the real estate and

construction engineering industry. However, in 2016, the advertising expenditure of the industry

dropped by 45.1%.

-44.8%

-34.8%

-16.5%

-6.1%

-20.5%

-45.1%

-40.9%

-32.4%

-15.4%

-38.9%

Real estate & Construction

Commercial & Service

Entertainment & Leisure

Finance

Post & Telecommunication

Industries Spent Money on Newspaper Advertising and Its Growth Rate

2015 2016


18 18 18


In 2015, the amount of advertisements and estimated revenue of advertising in newspapers for the

country's major industries decreased year-on-year, with the largest decrease being in the tobacco

industry, and the smallest decline in the electronic computer industry.

Source: Meihua.info

Industry Estimated published price Year-on-year growth of ad

placement Electronics & Computer -2.3% -6.4%

Agriculture -15.3% -35.9%

Financial investment -17.7% -23.6%

Culture & Recreation -26.3% -25.7%

Industrial Office Supplies & Business Service -26.7% -27.1%

Clothing -32.8% -40.2%

Medicine & Health Products -38.7% -37.8%

Food & Beverage -39.6% -43.2%

Personal items -39.7% -45.1%

Retail & Service -42.8% -41.3%

Appliance -44.7% -46.9%

Real Estate -48.4% -44.4%

Education & Telecommunication -50.7% -51.6%

Household Appliance -51.4% -51.8%

Automobile -52.3% -50.1%

Cosmetics & Bathroom Supplies -54.9% -54.2%

Tobacco -71.3% -67.4%

Year-on-year Growth of Newspaper Ads & Estimated Revenue in 2015

19 19 19



Growth Rate of TOP 5 Categories of Main Industries’ Spending on

Newspaper in 2016

Category

Growth

Rate in

2016

Retail Service -47.7%

Medical / Healthcare Institutions -34.1%

Education/Training -27.7%

Commercial and Service Industry-

others 2.8%

Beauty/Hairdressing/Body-care

Service -62.2%

Category

Growth

Rate in

2016

Tourism/Regional Image -30.2%

Entertainment and Leisure Service -47.8%

Sporting Goods and Service -30.0%

Entertainment and Leisure—

Corporate Image -29.5%

Teaching Supplies and Service -27.0%

Commercial and Service Industry Entertainment and Leisure

20 20 20



Growth Rate of TOP 5 Categories of Main Industries’ Spending on

Newspaper in 2016

Category

Growth

Rate in

2016

Bank -15.2%

Bank Business -9.3%

Lottery -6.9%

Insurance -11.6%

Finance—Corporate Image -21.7%

Category

Growth

Rate in

2016

Website -40.8%

Mobile Internet Service -50.4%

Mobile and Multimedia Service -18.2%

Service of the Entire Network -27.8%

Corporate Image of Telecom

Operators 19.2%

Finance Posts and Telecommunication

21 21 21


In 2016, the brand with the highest advertising spending on newspaper ads was Evergrande, while

the brand with the highest increase in advertising spending was Ge Hong, which increased by

685.1%.


Evergrande

Suning

CMCC

GOME

Red Star Macalline

Tmall

Gehong

ICBC

FAW-Volkswagen

Shanghai Volkswagen

11.1%

-24.0%

-40.4%

-47.8%

-42.2%

-40.8%

685.1%

-9.7%

-31.1%

New

Top 10 Brands That Spent Most on Newspaper Ad and Its Growth Rate (2016 VS 2015)

22 22 22


In 2015, the estimated revenue of Guangzhou Daily ads was the highest, falling by 28.1%

compared to the previous year. Other newspapers with relative high estimated revenue were The

Beijing News, XMWB, and Nanfang Metropolis Daily.

Source: Meihua.info

Top 10 Newspapers with the Highest Ads Revenue in 2015

Ranking Media Year-on-year Growth of Ads Revenue in 2015

1 Guangzhou Daily -28.1%

2 The Beijing News -37.4%

3 XMWB -39.5%

4 Nanfang Metropolis Daily -28.3%

5 Shanghai Morning Post -27.4%

6 Yangzi Wanbao -45.5%

7 Beijing Evening -25.6%

8 Beijing Times -41.1%

9 XDJB -55.0%

10 CQCB -42.4%

23 23 23


Future Pressure for Newspaper – From Audience

The digital era has arrived, which means that the readers are changing, and the industry itself is

also changing that will bring challenges upon newspapers.

• No more depending on reading newspaper in the morning

to acquire news and information.

• Not need newspapers to tell them about what’s important

like teachers or parents.

• Only want to be notified of news they are interested in,

which should be updated constantly.

• Not only want to know what is happening, but also want to

know why it’s happening.

• Expect to learn about news that is relevant to their own life.

• Expect news to be related with trending topics, which can

be used to chat and socialize with new friends in a much

bigger community.

24 24 24


Future Pressure for Newspaper – From Market

Today, the society has entered into a digital era. When, where and how readers, especially

new-generation ones, acquire news have changed greatly.

• The homogenization of contents and operation patterns will make newspapers be highly

replaceable with low profit.

• New media will aggressively grab more audience and ad placement from traditional newspaper

industry.

25 25 25


Magazines retain a certain growth and keep some market share based on the following

advantages:

• Fine print with rich colors to stimulate audience’s desire to read.

• The content is segmented, which allows readers to freely select and choose content based on

their interests.

• Magazines can be read repeatedly and kept for a long time, which makes it worth collecting.

• Magazines have high circulation rate to be read by a lot of audience.

But magazine has its own inherent weaknesses:

• Expensive, most magazines are priced from 10 to 20

RMB, some are even higher.

• Most magazines’ circulation is faked and cannot be

certificated and audited by any authorities, except several

famous ones.

• The preparation time before launching ads is so long,

usually lasting for 1-2 months before printing.

26 26 26


-27.1%

-40.1% -45%

-40%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

2015 2016

Magazine Advertising Space in 2015-2016


In 2016, magazine advertising revenue and advertising space continued to decline, and the decline

was higher than in 2015.

-19.8%

-30.5%

-35%

-30%

-25%

-20%

-15%

-10%

-5%

0%

2015 2016

Magazine Advertising Revenue in 2015-2016

27 27 27

Source: Zazhi.com


In the first half of 2016, sales of education, parenting and foreign language magazines accounted

for the largest proportion among all categories of magazine, reaching 17.6%.

Ranking Magazine Category Proportion of Sales in 2016 H1

1 Education/Parenting/Foreign Language 17.60%

2 Fashion/Entertainment/Clothing 15.51%

3 Recreation and Sports/Art/Advertising 13.30%

4 Commercial/Finance/Marketing 11.04%

5 Politics/Military Information 10.81%

6 Automobile/Life/Baike 8.20%

7 Tourism/Photography/Digital 7.10%

8 Architecture/Geography/Gardens 6.66%

9 Film/Comic/Movie and Television 4.01%

10 Technology/Exhibition/Internet 2.98%

11 Medical Science/Food/Hotel 2.79%

28 28 28

Source: Huawen Group


Category Name Sales Ranking Market Share（%）

Auto

Auto Fan 1 13.90

Car Market Guide 2 9.67

Orient Auto 3 9.28

Female Fashion

ViVi 1 21.77

Rayli Clothing & Beauty 2 20.31

Rayli Beauty & Fashion 3 14.12

Parenting

Mon Baby: 0-3 years old 1 11.80

Parenting Science 2 10.61

Mon Baby: Pregnant Women 3 9.94

Male Fashion

FOR HIM MAGAZINE 1 20.89

LEON 2 15.61

Esquire 3 14.86

Finance

CBN Weekly 1 18.80

Business 2 11.13

Economic Weekly 3 8.63

Household

RAYLI HOME 1 32.00

TRENDSHOME 2 22.26

AD 3 12.21

China’s Magazine Sales Ranking & Market Share in 2015

29 29 29


In 2016, the industry with the largest decline in magazine advertising expenditure was the

cosmetics and bathroom products industry, which represented a drop of 38.4% from the previous

year.

-12.4%

-20.8%

-20.2%

-24.9%

-7.8%

-23.4%

-38.4%

-34.5%

-25.4%

-21.8%

Personal Products

Cosmetics/Bathroom Supplies

Transportation

Clothing

Entertainment & Leisure

Top 5 Industries with the Largest Magazine Advertising Expenditure and Its Growth Rate

2015 2016


30 30 30


Source: Meihua.info

Industry Year-on-year Growth of Ad

Revenue

Year-on-year Growth of Ad

Placement Agriculture -17.4% -7.4%

Clothing -19.2% -8.6%

Personal items -20.8% -15.1%

Cosmetics & Bathroom supplies -21.3% -20.5%

Retail & Service -22.5% -29.9%

Appliance -23.0% -16.3%

Tobacco -23.6% -4.3%

Medicine & Health Products -24.5% -6.5%

Financial investment -24.9% -18.0%

Electronics & Computer -27.1% -25.7%

Culture & Recreation -29.3% -25.6%

Industrial office supplies & Business Service -32.3% -29.6%

Household appliance -33.6% -29.1%

Automobile -36.0% -28.2%

Food & Beverage -39.0% -40.6%

Real Estate -44.5% -36.0%

Education & Telecommunication -46.0% -42.5%

Year-on-year Growth of Magazine Ad Placement & Ad Revenue in 2015

In 2015, the number of advertisements and estimated expenditure of major industries in the country’s

magazines decreased year-on-year, but the overall decline was less than that of newspapers, with the

largest decrease being in educational telecommunications and other public service industry.

31 31 31



Growth Rate of TOP 5 Categories of Main Industries’ Spending on Magazine

in 2016

Category

Growth

Rate in

2016

Personal Items -20.0%

Clock and Watch -31.6%

Jewelry -9.7%

Luggage and Bag -53.6%

Glass/Contact Lenses 5.8%

Category

Growth

Rate in

2016

Skin Care -30.0%

Makeup -36.8%

Perfume -46.2%

Cosmetics/Bathroom Supplies -52.2%

Shampoo/Hairdressing/Haircare -75.5%

Personal Items Cosmetics/Bathroom Supplies

32 32 32

Source: CTR市场研究-媒介智讯


Growth Rate of TOP 5 Categories of Main Industries’ Spending on Magazine

in 2016

Category

Growth

Rate in

2016

Transportation tool -34.3%

Vehicle Related Service -42.0%

Transportation Service -43.7%

Transportation—Corporate Image -26.8%

Transportation—others 49.7%

Category

Growth

Rate in

2016

Clothing Products -11.6%

Clothing -37.7%

Shoes -28.6%

Underwear -19.3%

Clothing—Corporate Image 308.7%

Transportation Clothing

33 33 33


In 2016, among the Top 10 brands that had spent the most money on magazine ads, Lancome

spent the largest amount of money. The brand with the largest increase in spending was FAW-VW

Audi, which increased by 48.8%.


6.7%

-9.9%

-23.3%

-8.2%

-45.2%

-8.4%

48.8%

-9.7%

-27.3%

25.6%

Top 10 Brands That Have Spent the Most Money on Magazine Ads and Its Growth Rate (2016 VS 2015)

Lancome

Christian Dior

Chanel

Dior

Estee Lauder

LOUIS VUITTON

FAW-Volkswagen Audi

Audi

FAW-Volkswagen

Cartier

34 34 34


In 2015, advertisers who had a higher estimated magazine advertising investment were mainly the

cosmetic, fashion, and automotive industries, such as LVMH. It was worth noting that in 2015

Adidas strongly increased its investment in magazines.

Source: Meihua.info

Top 10 Magazine Advertisers in 2015

Ranking Advertiser Year-on-year Growth of Ad Investment in 2015

1 LVMH -1.9%

2 L'oreal -39.0%

3 FAW-Volkswagen 19.7%

4 Richemont -15.9%

5 SWATCH -22.5%

6 CHANEL -21.5%

7 Estée Lauder -27.5%

8 Mercedes-Benz 14.6%

9 Shanghai Volkswagen 41.2%

10 Adidas 51.0%

35 35 35


Source: Meihua.info

Top 10 Magazines with the Highest Advertising Investment in 2015

Ranking Media Year-on-year Growth of Advertising Investment in 2015

1 Elle 15.2%

2 Cosmopolitan -27.6%

3 Modern Weekly -29.8%

4 Bazaar -15.4%

5 Vogue -11.9%

6 Grazia -13.3%

7 Gateway -21.6%

8 Rayli -30.4%

9 Wings of China -7.4%

10 Marie Claire -17.4%

In 2015, advertisers who had a higher estimated magazine advertising investment were mainly the

cosmetic, fashion, and automotive industries, such as Elle, Cosmopolitan, and Modern Weekly.

However, the advertising investment on most of these magazines have dropped except Elle.

36 36 36


Serious homogeneity of magazines

For many magazines of the same category, the content is duplicated and cannot be further

subdivided and distinguished.

Fierce Competition in the market

As new magazines emerge like mushrooms, original magazines are at risk of elimination if they

cannot meet the market demand.

Impacts from new media

Online media and new media have changed consumers’ reading habits, and E-magazines are

getting more popular.

Future Pressure for Magazine

37 37 37


The Trend of Print Media under the Impact of New Media

• Create various digital forms, including website, mobile news, news client, and newspaper QR code.

Digital Forms

• Special issues, columns, and special edition will become the new features of print media.

Personalized Content

• Integrating traditional forms of print media with new media can boost sales and better market newspaper and magazines.

Interactive Management

38 38

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