4 What is a Revenue Stream? Revenue Stream: Broad-based, generic descriptions of different types of revenues that comprise the industry. E.g., Advertising and Marketing Services are commercially underwritten consumer and business media and end-user media is paid for by the person or company. For example, one would think Videogames, a segment of the Entertainment & Leisure Media Industry Sector, would fall only into the Consumer End-User Revenue Stream. However, portions of Videogame spending (online & mobile gaming advertising, in-game advertising) fall into the Advertising Revenue Stream. Similarly, portions of the Newspaper segment in the Traditional Consumer Advertising Media Industry Sector, has both Consumer End- User (which is paid for subscriptions and single copies) spending AND Advertising spending. Same goes for Consumer Magazines
5 Segments within Revenue Streams Advertising Marketing Services Institutional End-User Consumer End-User Newspapers Broadcast television & radio Cable & satellite television Yellow pages Internet & mobile Consumer mags B-to-B mags TV programming, license fees & retransmission B-to-b trade shows & mag subscriptions Education & training Biz & professional information Biz & professional services Direct marketing B2B promotions Consumer promotions Branded entertainment Outsourced custom pubs PR & word-of-mouth Cable & sat TV Consumer books Entertainment media Internet & mobile access & paid content Newspaper subs Magazines subs Forecast
6 Additional Perspective Was Needed… Rapid changes in the media & information landscape has led VSS to incorporate an additional analysis of spending in the Communications Industry grouped by Industry Sectors Because media owners, investors and top management require greater awareness of how their companies match up against their industry peers and other industry-specific spending patterns, VSS, for the 2010 Forecast, has added an entirely new and additional data perspective: Spending by Industry Sectors
7 Industry Sectors within Communications Forecast Targeted Media Marketing Media Business & Professional Info & Services Entertainment and Leisure Traditional Consumer Ad Media Education & Training Media & Services
8 Segments within Industry Sectors Business and Professional Information Business Information Professional Information Business and Professional Services Business & Professional Processing Services Business & Professional Technology Services Consumer Promotion Business-to-Business Promotion Public Relations & Word-of-Mouth Marketing Broadcast Television Newspaper Publishing Consumer Magazine Publishing Broadcast & Satellite Radio Out-of-Home Media Yellow Pages Directories Direct Marketing Direct Mail Branded Entertainment Outsourced Custom Publishing Pure-Play Consumer Internet & Mobile Services Business-to-Business Media Subscription TV Entertainment Media TV Programming Home Video Recorded Music Videogames Box Office Consumer Book Publishing Forecast Education & Training Media & Services Not-For-Profit College Instructional Media K-12 Instructional Media For-Profit Educational Services Outsourced Corporate Training Targeted Media Marketing Media Business & Professional Info & Services Entertainment and Leisure Traditional Consumer Ad Media Education & Training Media & Services More extensive information on each of the industry groupings can be found in the appendix.
9 Added perspective; greater depth and detail Total Communications Spending is on pace to increase 3.5% in 2010 and grow at a CAGR of 6.1% in period to $1.416 trillion, fueled by measured economic growth, digital technology advances, institutional spending on Business Information & Services and consumer spending on Entertainment & Leisure Media Traditional Consumer Advertising Media will continue to decline in 2010 and 2011 as brands shift to alternative advertising and marketing strategies Business & Professional Information & Services will be fastest growing Industry Sector in with 8.2% CAGR Entertainment & Leisure Media to remain largest of six major Industry Sectors, growing to $ billion in 2014 Institutional End-User to remain largest and fastest growing Revenue Stream, expanding at a CAGR of 7.3% to $ Billion in 2014
10 Targeted Media 17.7% Marketing Media 6.7% Business & Professional Info & Services 15.9% Entertainment and Leisure 24.7% Traditional Consumer Ad Media 13.6% Education & Training Media & Services 21.3% 2009 Communications Industry Spending Forecast Advertising 17.1% Marketing Services 18.0% Institutional End-User 44.2% Consumer End-User 20.6% Forecast Communications Spending by Industry Sector Communications Spending by Revenue Stream 2009 Communications Industry Spending: $1,055.2 billion
11 Targeted Media 19.0% Marketing Media 5.5% Business & Professional Info & Services 17.8% Entertainment and Leisure 25.3% Traditional Consumer Ad Media 11.4% Education & Training Media & Services 22.3% 2014 Communications Industry Spending Forecast Forecast 2014 Communications Industry Spending: $1,399.0 billion Communications Spending by Industry Sector Communications Spending by Revenue Stream Advertising 16.8% Marketing Services 16.3% Institutional End-User 46.1% Consumer End-User 20.6%
12 Appendix (greater definition of Communications Industry Sectors) –Business and Professional Information & Services –Targeted Media –Marketing Media –Education and Training Media & Services –Entertainment and Leisure –Traditional Consumer Advertising Media –Examples of companies by Industry Sector
13 Business & Professional Information –Business Information Marketing Information Financial & Economic Information Credit & Risk Information General Industry News –Professional Information Legal & Regulatory Information Scientific & Technical Information Health & Life Sciences Information Business & Professional Information & Services Business & Professional Services –Business & Professional Processing Services Payroll & Human Resource Services Financial Processing Services Other Outsourcing Services –Business & Professional Technology Services Institutional Internet Access Wireless Data SaaS & Licensed Software Forecast
14 Direct Marketing –Direct Mail –Telesales –Catalog – –Direct Response Television –Other Direct Marketing Branded Entertainment –Consumer Events –Paid Product Placement Outsourced Custom Publishing –Custom Magazines –Custom Newsletters –Custom E-Pubs –Custom Tabloids Targeted Media Pure-Play Consumer Internet & Mobile Services –Pure-Play Internet Services Pure-Play Internet Advertising Pure-Play Internet Access Pure-Play Paid Internet Content –Pure-Play Mobile Services Pure-Play Mobile Advertising Pure-Play Mobile Access Pure-Play Mobile Paid Content Business-to-Business Media –Trade Shows, Seminars & Conferences –Business-to-Business Magazines Advertising Paid Circulation –E-Media Advertising & Content Forecast
16 Education & Training Media & Services –Not-For-Profit College Instructional Media –K-12 Instructional Media –For-Profit Educational Services –Outsourced Corporate Training Education & Training Media & Services Forecast
17 Subscription TV –Subscription & Content –Advertising –License Fees Entertainment Media –TV Programming –Home Video –Videogames –Recorded Music –Box Office Entertainment & Leisure Consumer Book Publishing –New Books –Used Books –Audio Books –E-Books, Digital Content & Advertising Forecast
18 Broadcast Television –Network & Local Station Advertising Network Advertising National & Local Spot –Online & Mobile Advertising & Content –Retransmission Fees Newspaper Publishing –Daily Newspapers Print Advertising Print Circulation –Weekly Newspapers –Digital Advertising & Content Consumer Magazine Publishing –Advertising –Circulation –E-Media and Mobile Platforms Traditional Consumer Advertising Media Broadcast & Satellite Radio –Broadcast Radio Radio Stations Radio Networks –Satellite Radio –Online & Mobile Advertising & Content Yellow Pages Directories –Print Yellow Pages Telephone Company Publishers Independent Competitive Publishers –Internet Yellow Pag es Out-of-Home Media –Traditional Out-of-Home –Digital & Alternative Out-of-Home Forecast
19 Targeted Media Marketing Media Business & Professional Info & Services Entertainment and Leisure Traditional Consumer Ad Media Education & Training Media & Services Examples of Companies by Industry Sector Forecast Please note, the VSS Forecast doesnt not report or forecast any information regarding any specific company. The list above is solely for reference to ensure readers understand the composition of each Industry Sector.