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VSS Communications Industry
Forecast 2010-2014
Now with Data and Analysis by Both
Revenue Stream Sector
& Industry Sector
Previous Edition Analysis
 The VSS Forecast has historically viewed Communications
spending by four Revenue Streams
Forecast
2
Revenue Stream Sectors
Advertising
Institutional
End-User
Forecast
Marketing
Marketing
Services
Services
3
Consumer
Consumer
End-User
End-User
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 EndUser (which is paid for subscriptions and single copies) spending AND
Advertising spending. Same goes for Consumer Magazines
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Segments within Revenue Streams
• TV programming, license
fees & retransmission
• Newspapers
• Broadcast television & radio
• Cable & satellite television
• Yellow pages
Advertising
• Internet & mobile
Institutional
End-User
• Consumer mags
• B-to-b trade shows & mag
subscriptions
• Education & training
• Biz & professional
information
• Biz & professional
services
• B-to-B mags
Forecast
• Cable & sat TV
• Direct marketing
• B2B promotions
• Consumer promotions
• Branded entertainment
• Outsourced custom pubs
• PR & word-of-mouth
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Marketing
Services
Consumer
End-User
• Consumer books
• Entertainment media
• Internet & mobile
access & paid content
• Newspaper subs
• Magazines subs
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
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Industry Sectors within Communications
Business &
Professional
Info &
Services
Targeted
Media
Forecast
Entertainment
and Leisure
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Marketing
Media
Education
& Training
Media &
Services
Traditional
Consumer Ad
Media
Segments within Industry Sectors
• Business and Professional Information
• Consumer Promotion
• Business Information
• Professional Information
• Business-to-Business
Promotion
• Business and Professional Services
• Business & Professional Processing
Services
• Business & Professional
Technology Services
• Direct Marketing
• Direct Mail
• Branded
Entertainment
• Outsourced Custom
Publishing
• Pure-Play Consumer
Internet & Mobile
Services
• Business-to-Business
Media
Targeted
Media
Marketing
Media
Forecast
Entertainment
and Leisure
TV Programming
Home Video
Recorded Music
Videogames
Box Office
• Consumer Book Publishing
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•
Public Relations &
Word-of-Mouth
Marketing
• Education & Training
Media & Services
• Subscription TV
• Entertainment Media
•
•
•
•
•
Business &
Professional
Info &
Services
More extensive information on each of the industry
groupings can be found in the appendix.
Education
& Training
Media &
Services
Traditional
Consumer Ad
Media
• Not-For-Profit
College
Instructional Media
• K-12 Instructional
Media
• For-Profit
Educational
Services
• Outsourced
Corporate Training
• Broadcast Television
• Newspaper Publishing
• Consumer Magazine Publishing
• Broadcast & Satellite Radio
• Out-of-Home Media
• Yellow Pages Directories
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 2009-2014 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 2009-2014 with 8.2% CAGR
 Entertainment & Leisure Media to remain largest of six major Industry Sectors,
growing to $353.87 billion in 2014
 Institutional End-User to remain largest and fastest growing Revenue Stream,
expanding at a CAGR of 7.3% to $661.48 Billion in 2014
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2009 Communications Industry Spending
Communications Spending by
Industry Sector
Business &
Professional
Info &
Services
Marketing
Media
6.7%
15.9%
Targeted
Media
17.7%
Communications Spending by
Revenue Stream
Advertising
Education
& Training
Media &
Services
17.1%
21.3%
Marketing
Services
Forecast
Entertainment
and Leisure
24.7%
Institutional
End-User
Traditional
Consumer Ad
Media
13.6%
Forecast
18.0%
Consumer
End-User
20.6%
2009 Communications Industry Spending:
$1,055.2 billion
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44.2%
2014 Communications Industry Spending Forecast
Communications Spending by
Industry Sector
Business &
Professional
Info &
Services
Communications Spending by
Revenue Stream
Marketing
Media
5.5%
Advertising
Education
& Training
Media &
Services
17.8%
16.8%
22.3%
Targeted
Media
19.0%
Marketing
Services
Forecast
Traditional
Consumer Ad
Media
Entertainment
and Leisure
25.3%
Institutional
End-User
11.4%
Forecast
16.3%
Consumer
End-User
20.6%
2014 Communications Industry Spending:
$1,399.0 billion
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46.1%
Appendix (greater definition of
Communications Industry Sectors)
–
–
–
–
–
–
–
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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
Forecast
Business & Professional
Information & Services
 Business & Professional Information  Business & Professional Services
–
Business Information
•
•
•
•
–
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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 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
Targeted
Media
 Direct Marketing
–
–
–
–
–
–
Direct Mail
Telesales
Catalog
E-Mail
Direct Response Television
Other Direct Marketing
 Branded Entertainment
–
–
Consumer Events
Paid Product Placement
 Outsourced Custom Publishing
–
–
–
–
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Custom Magazines
Custom Newsletters
Custom E-Pubs
Custom Tabloids
 Pure-Play Consumer Internet &
Mobile Services
–
Pure-Play Internet Services
–
Pure-Play Mobile Services
•
•
•
Pure-Play Internet Advertising
Pure-Play Internet Access
Pure-Play Paid Internet Content
•
•
•
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
–
E-Media Advertising & Content
•
•
Advertising
Paid Circulation
Forecast
Marketing
Media
 Consumer Promotion
–
–
–
–
–
–
–
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Point of Purchase
Coupons
Promotional Licensing
Premiums
Loyalty Programs
Product Sampling
Games, Contests & Sweeps
 Business-to-Business Promotion
–
–
Promotional Products
Travel & Incentive Marketing
 Public Relations & Word-of-Mouth
Marketing
–
–
Public Relations
Word-of-Mouth Marketing
Forecast
Education & Training
Media & Services
 Education & Training Media & Services
–
–
–
–
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Not-For-Profit College Instructional Media
K-12 Instructional Media
For-Profit Educational Services
Outsourced Corporate Training
Forecast
Entertainment
& Leisure
 Subscription TV
–
–
–
Subscription & Content
Advertising
License Fees
 Entertainment Media
–
–
–
–
–
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TV Programming
Home Video
Videogames
Recorded Music
Box Office
 Consumer Book Publishing
–
–
–
–
New Books
Used Books
Audio Books
E-Books, Digital Content & Advertising
Traditional Consumer
Advertising Media
Forecast
 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
–
–
–
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Advertising
Circulation
E-Media and Mobile Platforms
 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 Pages
 Out-of-Home Media
–
–
Traditional Out-of-Home
Digital & Alternative Out-of-Home
Examples of Companies by Industry Sector
Business &
Professional
Info &
Services
Targeted
Media
Forecast
Entertainment
and Leisure
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Please note, the VSS Forecast doesn’t 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.
Marketing
Media
Education
& Training
Media &
Services
Traditional
Consumer Ad
Media