Tuesday, 21 December 2010

Online ad value now exceeds newspapers

The Wall Street Journal has published a summary of new research in the US by eConsultancy which estimates that advertisers will have spent more on Internet ads than on print newspaper ads in the past year. Figures for US spending on online ads are expected to hit $25.8 billion, which is higher than the $22.8 billion spent on print ads in newspapers.

This change has been expected for some time as the gap was rapidly closed between the two types of advertising media and as the Internet became more maintstream. As the article says, the online platform provides many more options for news although newspaper publishers can't charge as much for ads online as they can in print. Therefore while the total audience for many newspapers may have grown in recent years, the publishers have been unable to stem revenue declines.

Other research mentioned by the article includes recent findings by Forrester Research which show that US consumers are now spending as much time online as they do watching television. But they aren't necessarily spending less time in front of their TVs, so the media that are seeing a declining share of usage are radio and print newspapers / magazines.



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