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We live and work in exciting times - revolutionary times. Technology continues to recast the media industry.
The extraordinary advance of affordable personal digital technology and the stellar rise of social networks are both distrupting and transforming the media market making this a unique moment to be involved in the convergence sectors we focus on.
This is also our place to ruminate and comment on the world as we see it, we hope you enjoy and please join in.
Tuesday, 4 September 2007
Mind the gap - print revenues escaping faster than online can replace
Frantically trying to keep the bucket full, without being able to cover the huge hole in the side, continues in the US newspaper industry, according to an e-consultancy report (see below)
Print revenues (small long established competitive set) continue to shrink, while online revenues (competing against a much broader global competitive set)perform well, but not well enough to bridge the gap.
My view - you really have to keep up the focus on revenue streams from the customers who trust your brand. It's not rocket science in theory, but the number of media companies who are doing it well at the moment is small.
There's more to life than a website - talk to me directly with a relevant offer from a brand I trust, and you've got a good chance of making me open my wallet
Online newspaper ad revenues rise, print ads fall
Ad spending on US newspaper websites continues to grow while spending on newspaper print ads declines, according to new figures.
Newspapers' online ad revenues increased by 19.3% year-on-year in Q2, according to the Newspaper Association of America, to a total of $796m (£395m) - their thirteenth successive quarterly rise.
But print ad revenues have taken a tumble, falling from $10.5bn in Q1 2005 to $9.8bn in Q2 this year.
The rise in online ad revenues has also not been enough to offset the drop in print ad spending. Total ad expenditure is down almost $1bn over the same period in 2006, a fall of 8.6%, the group said.
The big challenge facing newspapers as more and more people choose to read news online is whether online ad revenues will be enough to make up for the associated loss in newspaper sales and print ad revenues, and still enable them to pay for the cost of creating content.