The digital ad revolution, always "just around the corner", remains tantalizingly out of reach for most newspapers, which explains why some stalwarts like the New York Times and Wall Street Journal have moved to subscription models for their websites to bolster digital ad growth. Just today, the Washington Post announced a paywall.
[...]
Since 2003, print ads have fallen from $45 billion to $19 billion. Online ads have only grown from $1.2 to $3.3 billion. Stop and think about that gap. The total ten-year increase in digital advertising isn't even enough to overcome the average single-year decline in print ads since 2003."
Source: The Atlantic, 18th March 2013
Full Pew report here
2 comments:
Thanks for drawing attention to the massive discrepancy, Dan. An obvious follow-up question is: where have the dollars gone..? TV ad revenues are also down, and radio - pfft!
Any thoughts..?
I think it's gone to things like performance media, especially Google, plus to social media, and to video ads. Newspapers can sell these ad formats, but they face heavy competition.
This is a great presentation from Google on newspaper economics from 2010:
http://www.scribd.com/doc/28084224/030910-Hal-Varian-FTC-Preso
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