Date

Fri - 18.04.2014


ad revenue

By now you’ll have heard an awful lot about native advertising. Like the fact that it will save us all (maybe), that news companies see a financial future in it, and that it while it sure can attract a whole lotta love, alas, the time has not come for The New York Times to embrace it.

A quick recap: native advertising is independently compelling content (text, video or other) that is paid for by a brand, and semi-camouflaged in a publication’s natural editorial environment. It should neither stick out like a sore thumb nor dupe the reader, somewhat like how the model in the picture above blends prettily into her bed of leaves, without leading anyone to believe that she herself is plant-based.

Author

Emma Knight's picture

Emma Knight

Date

2012-11-16 18:48

Times are tough down under. Embattled traditional media outlets in Australia are being beaten in the struggle for advertising revenue by online media companies.

Where once classified advertisements were rivers of revenue that sustained print titles for almost two centuries, they are now more commonly found at specialist sites that are presenting a serious challenge to newspaper’s position in the advertising market.

According to the Commercial Economic Advisory Service of Australia, 2012 is the first year in which online ad spend in Australia overtook that of newspapers. The dominance of new media companies focused on the sale of classified ads online, in particular Carsales.com, recruitment site SEEK, and real-estate site REA, contributed greatly to the change, which saw the online market receive 27 per cent of the country’s total advertising dollars. Newspapers attracted 24 per cent.

Reuters reports that the shift in advertising dominance from traditional media to online companies is a relatively new phenomenon in Australia. As recently as April the value of traditional media organisations was greater than that of online companies, but in the intervening months the worth of newspaper outlets and television broadcasters plummeted.

Author

Amy Hadfield's picture

Amy Hadfield

Date

2012-09-20 17:32

That is the message global media consultants Simon-Kucher & Partners is hoping to send to news publishers, with a report that makes the case for significant increases in newspaper cover prices.

Price hikes are frequently seen as tangible proof of a newspaper’s declining fortunes, a desperate attempt on editors’ parts to combat dwindling revenue. Take for example Jeff Jarvis’s reaction to the NYTimes’s decision to raise the price of its print edition by 25 percent, from $2 per copy to $2.50. Jarvis doubted the viability of such a move, believing that it aimed to “support an outmoded economic model.” Newspapers, he argued, have lost much of their pricing power as online content puts paid to the advertising models that once made newspapers a powerful economic force. Jarvis’s reflections on the impact digital has had on newspaper ad revenue is valid in the main, but his assertion that increasing cover prices is an exercise in futility finds a counter-argument in SKP’s recent study.

Author

Amy Hadfield's picture

Amy Hadfield

Date

2012-09-03 17:07

JP Morgan analysts said U.S. newspapers likely did better than expected during the first fiscal quarter of 2010, MediaBistro reported yesterday. Less drastic revenue drops, the comeback of national funding and a jump in auto classified ads may all account for the phenomenon.

Publisher Gannett Co., Inc. may see a 7.2 percent decline in ad revenue during Q1 and a 5.6 percent downward shift in 2010. The New York Times Co. may experience a 5.5 decrease throughout the year and a 8 percent fall for Q1, according to Editor & Publisher.

Meanwhile, E.W. Scripps and McClatchy may experience a 12.5 and 8.4 percent decline in ad revenue during Q1, respectively. While ad revenues may be plummeting, they are doing so at a slower pace than in 2009, E&P proposed.

Newspapers may re-emerge in a "modest" fashion with single-digit overall percentage declines, Editor & Publisher informed. The report suggested that Q1 results and adjusted estimates might offer "a little further stream" to newspaper stocks.

Author

Alisa Zykova

Date

2010-04-15 13:53

Advertising revenue at U.S. newspapers was down more than 27 percent last year, as both print and online saw declines in the double digits, according to figures released by the Newspaper Association of America on Wednesday, Agence France Presse reported today.

Print advertising was down 28.6 percent, to $24.82 billion, while online was down 11.8 percent to $2.74 billion. Combined, revenue fell 27.2 percent to $27.56 billion, compared to $37.84 billion in 2008.

Perhaps even worse, the drop last year shows an acceleration in decline for the year-over-year period, Editor & Publisher pointed out. The decline from 2005 to 2006 was 1.7 percent, in 2007 the decline was 9.4 percent and in 2008 the decline was 17.7 percent.

The scale of damage "is stunning," New York Times media writer Richard Perez-Pena stated. "The last time advertisers spent less on newspapers was in 1986."

Author

Leah McBride Mensching

Date

2010-03-26 19:47

UK national newspaper business Associated Newspapers Ltd. this morning reported a 12 percent fall in overall revenue in the last three months of 2009 to £208 million for the period. Meanwhile, Associated's owner, Daily Mail and General Trust, recorded a year-on-year revenue decline of 15 percent in the last three months of 2009, to £482m for the period, Press Gazette reported.

Meanwhile, the company is looking to build new revenue streams, as evidenced by free daily Metro's plans to launch new revenue streams online, MediaWeek reported. Metro is looking to overhaul the commercial aspect of the site, while also launching new audio and video tools. The reworked site is expected to go live from its test phase next month.

Throughout the year, Metro is also planning to add many new revenue streams, such as entertainment-focused content, similar to its current gambling channel. However, no further details were provided, according to MediaWeek. In one of the first steps toward creating more online revenue, however, the editorial and product team will "have a more commercial focus" and report to the digital director instead of the newspaper's editor.

To present advertisers with the value of its audience, Metro has done audience research and is now calling its online audience "City Clickers," a group of 15 million heavy Internet users, ages 18 to 44.

Author

Savita Sauvin

Date

2010-02-10 23:53

Social networking sites, especially Facebook and micro-blogging service Twitter, have seen enormous growth over the past few years, and news outlets are using the two to attract a wider audience, keep dedicated readers close and distribute stories to a wider audience.

The Austin American-Statesman, The New York Times and The Huffington Post are all experimenting with new ways to generate ad revenue using both social networking sites, and are discovering that benefits can be two-fold: news outlets gain new social networking audiences, while advertisers gain a new way to engage consumers, Poynter Online reported. Meanwhile, smaller businesses that have less advertising dollars to spend are able to reach consumers in a newer, more cost-effective way.

At The Austin American-Statesman, for example, advertisers can pay for tweets on two of the newspaper's Twitter accounts, @Austin360 and @Statesman. Two advertisers, a restaurant and haunted house, paid $300 each per day in autumn 2009, and were each given a 124-character tweets, one in the morning and one in the afternoon.

Most followers found the ads to be non-intrusive, said Robert Quigley, the newspaper's social media editor. This is likely because he stipulated that the adverts must be action-related, such as giving a special offer that benefits readers, as opposed to just an ad.

Author

Leah McBride Mensching

Date

2010-02-03 00:33

Lee Enterprises announced its 4Q results, with total revenues down 14 percent year-over-year, to US$209.8 million. However, it is a great improvement over the U.S. publisher's recent performance, Media Post reported.

Total revenues dropped 19.7 percent in 1Q year-over-year, 20.5 percent in 2Q and 20 percent in 3Q. In the first nine month of 2009, total revenues were down 20 compared to the same period one year ago.

In the full year of 2009, Lee's total operating revenues decreased 18.2 percent to $842 million.

However, although its ad revenues in 1Q of 2010 were down 16.4 percent year-over-year, it is a huge improvement from a 23.8 percent drop in the previous quarter. "This improvement appears to be continuing into January and February," CEO Mary Junck said in a statement.

Lee, just like other players, has been reducing costs to deal with a prolonged downturn and the ad revenue slump. It cut 1,000 jobs last year and has also outsourced some operations including printing and delivery, Miami Herald reported.

Lee shares increased 42 cents to $4.47 in Tuesday morning trading.

Author

Erina Lin

Date

2010-01-20 21:21

Kubas Consultants have released the results of their survey of over 530 U.S. and Canadian newspaper executives' and managers' expectations for advertising revenues in 2010 and what strategies they have planned to meet the New Year's challenges.

'Preview 2010' found that next year is widely held to be a year of improvement in all categories of newspaper advertising revenue. It is important to note that 'improvement' here means 'declining less quickly' rather than positive growth. This is approximately the same perception expected of 2009, except that this optimism was misplaced as 2009 saw newspapers' online sales decrease.

For more on this story, visit our partner site, editorsweblog.org.

Author

Leah McBride Mensching

Date

2009-12-17 19:58

Ad revenue for U.S. newspapers totalled US$6.4 billion in the third quarter, a 28 percent drop from the same time last year, The Associated Press yesterday reported. The decline in revenue for online ads was somewhat less severe, with a 17 percent drop for the same period a year prior, paidContent observed.

The dismal report represents the 13th consecutive quarter of declines, according to The Washington Business Journal. Despite the disastrous trend, John Sturm, CEO of the Newspaper Association of America which compiled the data, was quoted today by Bloomberg as saying, "The broad consensus is that the worst has passed."

Author

Leah McBride Mensching

Date

2009-11-20 16:11

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