MANILA, Philippines — In the age of rapid technological advancement—shows on demand through the net, social media, digital advertising, online news, and proliferation of e-books—much curiosity is raised if this development, and its continued penetration and progression, will affect how we consume traditional media.

With publications regarded as the easier format to convert online, a lot also has been asked if print media (newspapers and magazines) are either being cannibalized or, bluntly put, replaced by the proliferation of news and lifestyle articles sources online.

If this is the case, are we faced with the ultimate demise of the physical newspaper and magazine? Is there a certain level of substitutability between the physical newspaper and its online alter ego? Is this media ready to go fully online? What would be the possible effects of this emergence to media publishers, media agencies and to the consumers? What can be done now to ease the bleeding and capitalize on this growing trend? How do we “ride the tide”?

Omnicom Media Group Philippines, together with its two media agencies OMD Philippines and PHD Philippines, studied multiple sources (both local and internationally published articles), looked at the trends and conducted interviews to determine if, indeed, we are looking at a paperless print future.

Demise is Faster in Progressive Countries

Journalism, specifically the newspaper business, is one of the most affected sectors by the Internet revolution. The Internet is defining the new speed of delivery from headline news items, lifestyle articles and the latest trends; everything has become almost real time.

News distribution is cheaper and news items are now more interactive than ever via consumer-generated news content (i.e. CNN iReport). This trend has pushed publishers to tap into digital newspapers since digital news and newspapers are among the most sought after services in the Internet.

As early as 2004, there were already studies that further explained the main aim of users accessing the Internet is to read breaking news and search for up-to-the-minute information (Kaye and Johnson 2004). Internet news in 2006 already came in second to television as the main source of news and information in progressive countries like the U.S. (Harris Interactive 2006, U.S.).

This earlier version of the research further strengthens the recent result in a study conducted in the U.S., which shows a great decline in newspaper readership as the market inches into the digital platform. As a result, a number of newspapers were folded in and filed for bankruptcy. There are other US data showing readers abandoning the printed/physical format in favor of its digital version.

Different Motivations Behind Reading

But even with the increasing demand for up-to-date news, there is still a portion of the U.S. market that still prefers holding an actual printed material. For the majority of this population, reading and feeling a printed medium is a totally different experience.

In a study conducted by Flavian and Gurrea discussed in “Digital versus Traditional Newspapers: influences on perceived substitutability,” there are different motivations in reading newspaper online and when reading the traditional form.

They found out that those who read digital newspapers are in search for up-to-the-minute information, while those who read the physical newspaper read for entertainment or leisure (Bouwman and Van de Winjgaert 2002).

Thus, reading the press takes up part of the readers’ leisure time while the individual acquires knowledge of current affairs. There are also significant evidences suggesting that readers read newspapers out of habit acquired over time, and generally at a given time of the day (Len Rios and Bently 2001); they will read or leaf through the newspaper almost systematically.

The study explained that there is a negative relationship between the search for updated news and the level of substitutability between the two newspaper formats. Some newspaper readers satisfy their reading needs using both media, when the motivation behind reading is that of entertainment or habit. Some publishers might have recognized this fact, which provides sufficient reason for them to operate on the two platforms.

Alarming

What is troubling in both scenarios is the fact that news readership using the Internet is not compensating the decline in over-all newspaper readership.

The Omnicom study revealed that the two percent decline in overall newspaper readership would seem not as alarming as the 12 percent decline of the print-only newspaper readers. On the contrary, the bigger implication means that as print readership declines, there is no sufficient increase in online newspaper readership. There is an apparent departure of readers to non-newspaper sources of online news.

Interest, not Newsworthiness

There is scarce material discussing the possible cause and effects of the Internet in terms of gathering and spreading information in the Philippines. The country’s digital landscape is, relative to our regional counterparts, in its early stage.

Since its debut in the mid-90s, the Internet as a communication platform has changed dramatically. Infrastructure and hardware has undergone massive upgrade. Internet browsing now is definitely more sophisticated than how it was 15 years ago.

It is the birth of DSL, Cable line, broadband, Wi-Fi and Wi-Fi hot spots that changed the psyche of the Filipino Internet consumer. Overnight, the Philippines became connected to the world, adapting every technology available. The 2011 Q1 Nielsen Media Index reports show that there are close to 12 million Filipinos who have access to the Internet, and that’s 33 percent of the total Urban Philippine population.

Most access happens in Internet cafés and majority of the Internet users are teenagers to young adults.

What is more interesting is the fact that the Philippines is the 7th top Facebook (FB) user in the world; and if you will look at the relationship of the numbers, then it can be deduced that almost 90 percent of those with Internet access has an FB account, with almost 12 million Filipinos updating and reading their accounts as you read through this article. Social Media, may it be through Facebook, Twitter, etc., has definitely changed how we interact, communicate and relay information.

As the Philippines is fast adapting to the new technology, Philippine print media has also taken steps to catch up with the raising Internet trend. Similar to western countries and our tech-savvy Asian neighbors, publications have developed online versions of newspapers and magazines.

Advertising has also taken new form with online advertising, website sponsorships, microsite developments, etc. With this, online media and online advertising is slowly marking its territory against broadcast advertising.

While it is sufficient to say that the Omnicom study did not find any direct evidence to point that the decline in print readership can be directly attributed to the shifting preference towards the Internet, there are indications, nonetheless, that as total print media continues to decline in readership, Internet penetration/usage is increasing.

Data shows that the decline of newspaper readership are among young adults 15 to 29 and 30 to 39 years old, which is also the age where Internet penetration is increasing and is the highest. Can it be that newspapers are being crowded out by more interesting “net-based” formats or media options?

A study conducted by U.P. students on “Assessing the News Literacy of Public High School Students” stated that, “it is not that the youth is not concerned about news and current affairs—in fact, they actively seek news and do have a notion of ‘newsworthiness.’

But their selection and consumption of news depends on what interests them. Interest, not notion of newsworthiness, directs news consumption,” reveals the study. Consuming news and having the notion of newsworthiness boils down to interest or relevance.

The Rise of the Third and Fourth Screens

Consumers are not shifting back to TV viewership either. In fact, this is at a status quo across TV channels. There is already a constant attention given to news and information on television. If the other form of media is not compensating for the readership decline, and there is an apparent shift to the Internet, where did they all go?

Nielsen’s 2010 Net Index revealed that the Internet is used by this age group as an information source, as well as a connection and entertainment platform. Genres that they most frequently read vary by age group and their interest.

With the already declining time spent reading the newspaper (from 13 minutes in 2008 to nine minutes in 2010), any other technology based format that is an information source is time away (or eyes away) from print.

Another source of bleeding is the emerging third screen (the mobile phone and mobile internet) as a medium of exchange of news and information. Statistically, eight out of 10 Filipinos currently own a mobile phone, 85 percent of which is in the hands of teens and young adults from ages 10 to 35.

The use of Internet through mobile phones is slowly edging its way to the lifestyle of Filipinos, most especially the young and mobile who easily adopt new ways of receiving and seeking news and information. It does not help the print industry that mobile Internet providers are making access to the technology easier and more affordable.

In one quarter, mobile Internet usage has increased use incidence by 18 percent and it is projected that in succeeding months, it will further increase by four-folds.

An emergent technology-threat to print is the rise of a fourth screen: The tablets. Though still more prominent in the U.S. and in developed Asian countries, in Q4 of 2010 alone, 10.1 million tablets were already shipped worldwide, and up to 4.5 million in Q3. E-reader shipments rose from 3 million in 2009 to 12.8 million in 2010. It is estimated that tablet sales will reach to 24 million in 2011 and about 80 percent of which will be iPads.

What is interesting about this piece of research is the fact that consumers have indicated they are willing to pay for content, as long as the device or tablet would give them the flexibility for multi-purpose entertainment. In an analysis of the optimal price, most respondents were willing to pay $5 to $10 and said that it was about right for digital books or monthly subscriptions to digital book or digital newspaper services.

Prices for digital magazine subscriptions or single copies came in a bit lower. This is as opposed to their unwillingness to pay for online subscriptions through the Internet alone.

Print’s Weakness is its Strength

Currently, print is still a viable medium. Basing it on the data Omnicom gathered from Nielsen, it shows that print—specifically newspapers—is still being given sufficient attention. Hardcopy newspapers are still read much more extensively than online versions (2.9 minutes average time spent in reading online information). One format indeed has an advantage over the other.

In an article published in Marketing Today about “The Value of Print” (January 2010), digital wins in terms of speed, cost efficiency and content adaptability, through the way in which online content can be easily updated, archived and retrieved, and also on how quickly it can be searched and the way people are able to collaborate on documents online. But print is the more durable and flexible medium.

David Heitman, in the same article said: “Interestingly, many of print’s alleged weakness are actually its strength when leveraged in the right context. The most obvious is print’s tactile dimension.” Print’s readability and usability in the context of the three B’s: 1) On the bus; 2) In bed; and 3) In the bathroom—without fearing for your magazine or newspaper’s life. Nevertheless, your choice of one over the other is always in terms of use or purpose.

As a consumer who reads, your choices are governed by portability, convenience and practicality and advertisers are always on the side of which medium will deliver the optimal impact on their business.