Russian-language social networking site VKontakte revealed that during the third quarter, it generated triple the revenue from targeted ads, reaching almost US$1.5 million a month, Lenta.ru reported today. Vedomosti hinted that the growth is expected to continue.

The Facebook competitor gained between $5 and $6 million during the first nine months of 2010. According to VKontakte's Operating Director Lev Leviev, the growth was due to the launch of a new ad system that caters to factors such as geographic location, interests, gender and age.

Last year, the social network made $34.5 million. Vladislav Kochetkov, analyst for investment group Finam, predicted that in 2010, earnings would grow by 60 percent to $55 million.

The site had a large audience and a good targeting system, said Maria Chernitskaya, general director of context-ad firm iContext. Lenta.ru outlined that VKontakte is the largest Russian-language social site with over 70 million registered users.

To explore the potentials of mobile marketing for advertisers, ad agencies and retailers, Irish free commuter daily Metro Herald has partnered with a mobile Internet service company to provide users with quicker means to respond to advertisements on print by scanning QR codes, SiliconRepublic.com reported Tuesday.

As a part of the deal, the newspaper will work in tandem with the Digital Reach Group to use Quick Response (QR) codes on print advertisements. The Irish Independent explained how QR codes work: "QR codes are barcodes embedded in advertisements that can be scanned by a reader using their smartphone to access extra information on their phones." While enabling users access to additional content on mobile devices, a simple point and scan will allow them to download mobile apps, enter competitions, receive a special offer or voucher, call or text.

This move by the newspaper is aimed at boosting its advertising portfolio, by integrating the digital interactive response element to the print ad campaigns, according to SiliconRepublic.com.

New Jersey's largest newspaper, The Star-Ledger, will cut salaries and offer voluntary buyouts to employees in a move aimed to reduce costs, The Associated Press reported yesterday.

The Newark daily, which is owned by Advance Publications, is expected to lose US$10 million this year as advertising revenues continue to decrease, publisher Richard Vezza said in memo sent to the staff (reproduced by Poynter Online). In 2009, the company's losses reached $9 million.

This the third round of buyouts since 2008, when Advance Publications threatened "to close or sell the Star-Ledger if it didn't get at least 200 buyouts from the paper's then-756 non-union full-time workers," Editor & Publisher explained. So far 300 employees have left.

The buyout plan is available for non-union employees hired before January 1, 2006, and it includes one year of salary and medical benefits. The company will also restructure salaries "based on job duties and what newspapers of a similar size and situation are paying for those jobs," Vezza wrote.

For years, American dailies have relied on a traditional business model in which about 80 percent of revenue comes from advertising and 20 percent from circulation. But now, according to a study conducted by Harvard University, the old rule of thumb has changed, The Guardian reported on Friday.

"We're moving into an era of 'reader revenue,' one that will roll up print subscriptions, single print copies, digital pay per view, digital subscriptions, all-access (across platform) subscriptions, memberships and more," said Ken Doctor, who leads the research.

As ad revenues have declined from $50 billion in 2000 to $24 billion in 2009, newspapers have increased their single copy and subscription prices and have started to look at other ways to gain revenue. The overall effect is greater circulation revenue, El Mundo informed.

Based on data from the second-quarter reports, the survey shows, for instance, that The New York Times revenue is 40 percent from circulation and 53 percent from ads. Other American publishers that are moving away from the old business model are:
- Scripps: Circ: 28 percent, Ads: 67 percent, Other: 5 percent
- Gatehouse: Circ: 27 percent, Ads: 71 percent, Other 2 percent