[ About Us | Popular | Marcom | AdNet | IChannel | Glossary ]

Oct 13, 2008

Newspapers Saw Worst Online Ad Revenues Ever, Changing Slowly

Newspapers Saw Worst Online Ad Revenues Ever in Q2

Despite lifelines from Yahoo and quadrantOne, the newspaper industry is gasping for air as its online ad revenues continue to sink. It’s worse than ever. Second quarter revenues actually contracted for the first time, following disappointing Q1 growth of less than 10 percent.

In Q2, online ad revenues were around $777 million, down from $804 million in Q1 2008, amounting to a -2.4 percent change.

Now, in addition to battling steeper-than-ever declines in print classifieds revenues, newspapers must contend with a severe drop in Web ad dollars – the only hope the industry has had for counteracting print ad decreases.

With ad budgets steadily tightening, I think it’s safe to say we can expect the waters to get even choppier for newspapers. Hopefully they can hang on without the need for desperate measures. 

US: Is linking to outside news sites the future?

News providers have recently begun linking to outside news sites on their web editions, this marks a significant shift in attitude towards recommending rival sites as alternative sources of information. 

Picture 1.jpg

An example of the changing attitude towards linking to other sites is on the recently launched site, the Political Browser by The Washington Post.  The new section of their site aims to provide readers with the best in political news coverage - even if that means linking to stories by rival newspapers.  This move, according to executive editor at the PostJim Brady, will allow their site to become the front door to political coverage.

Time Inc. Preps 'Two-Year' Plan To Get Through Rough Economy; Newsweek Tries To 'Reimagine' Itself

imageWith Time Inc.'s print ad revenues trending downward and digital growth likely to miss the company's expected 53 percent gains, chairman and CEO Ann Moore is working on a two-year plan designed to manage the magazine unit through the downturn, TimesOnline reports. Moore doesn't reveal too many details about the strategy, saying she "doesn't know" if there will be layoffs.

-- Blame the bankers: Moore does try to bat away rumors about a possible sale of the UK-based IPC division, which houses titles such as NMECountry LifeInStyle and its Southern lifestyle titles, Moore responds: "Where did you hear that from? I know, wishful thinking from bankers hoping for a mandate." Later on in the interview, she defends Time Inc. as a "cash cow" for Time Warner (NYSE: TWX). Specifically, Moore points to Time Inc.'s $907 million profit last year, which represents 13 percent of the parent company's content businesses. So where does all the negative talk around magazine companies come from? She feels that "investors were too focused on trying to find double-digit growth," adding:  "I hope that the lesson from this crisis is that we have less bankers, and return to the basics with more people who actually make things." Given that alcohol sales tend to do better in a downturn, Moore says she's considering bringing IPC'sDecanter mag and website to the U.S.

-- Newsweek tries to modernize (again): The weight of a long history can be a bit of a drag on magazine redesigns, which more often than not, really just try to tweak the margins. Mediaweek, citing unidentified sources, says that Newsweek execs are trying to "reimagine" the 75-year-old mag as if it were having its debut today. Last year, the news mag completed what was then considered a major overhaul, with fewer, but more dramatic photos and longer articles by a range of outside contributors. So while it seeks to change course on the print side, Newsweek hasn't forgotten about the importance of its online end. Last week, the Washington Post Co title hired Pamela Raley, a former online ad sales exec at Hearst and Disney, to the new post of chief revenue officer. Her main focus will involve wringing more revenue out of Newsweek's online operations...

No comments:

Post a Comment

Comments accepted immediately, but moderated.

Support Our Sponsors: