The global leader for the entertainment and media practice, at PricewaterhouseCoopers LLP in Hong Kong, Marcel Fenez, argued that ‘traditional media isn’t dead’ on the last day of the WAN/World Editors Forum 11th Readership Conference (information courtesy of WAN conference updates).

The latest media and entertainment industry forecast from PricewaterhouseCoopers predicts that global newspaper advertising will grow 2.9 per cent to 136.8 billion dollars in 2012, with digital advertising accounting for 43 per cent of the growth.

• Print advertising will grow 1.8 per cent to 123.3 billion dollars worldwide in 2012
• Digital advertising will grow 19.3 per cent to 13.4 billion dollars:
• While the growth rate for digital advertising will continue its impressive rise over the next five years, the total in 2012 will represent only 10 per cent of total print and digital newspaper advertising.

“Some people say that traditional media is dead. Well, it isn’t. For the next five years, it ain’t gonna be,” he said. “The death of traditional media is exaggerated, at least in a 5-year context.”

Fenez said the forecasts, based on consumer and industry sources, does not take into account the recent economic meltdown, which could have a negative impact on the figures.

Fenez reported:

• The generation that comes of age in 2012 will be the first that doesn’t know the pre-internet world. “We hear a lot about user generated content from the ‘net generation’. It’s very, very, very important. But premium content is still really valuable. Even the net generation values premium content. They’re tired of watching videos of a dog running up a tree.”
• Advertisers will take a ‘wait and see’ attitude and be cautious about spending in the first half of 2009. “They won’t do anything until mid-year. If they have the revenue, they’ll release their budgets.”
• Video games advertising is set to grow 17 per cent to 2012, though the revenue is still negligible. Most of the money being spent on game advertising is coming from television.
• “We’re on a journey of transition from traditional to digital: the first to probably go totally digital is the music industry. In 2011, the majority of revenues will be digital.”