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News can’t be an online only business September 19, 2007

Posted by jeremyliew in advertising, business models, newspapers.

Sometime a picture is worth a thousand words:

Newspaper advertising revenues

From the WSJ today as they self referentially discuss if they will go from pay to free.

The rate of growth of online-newspaper ads dropped to 19.3% during the second quarter of 2007, down from a growth rate of 33.2% during the second quarter of 2006, according to the Newspaper Association of America.

The slowing growth online coincides with accelerating declines in newspapers’ print-ad revenue, casting doubt on whether newspapers will ever be able to offset their losses in print with gains on the Internet. Online ads still make up a small portion of total newspaper revenues, just 7% of the $11.3 billion total print- and online-newspaper ad revenues during the second quarter.


1. mike - September 21, 2007

Not right now anyway. The monetization around display advertising just isn’t there yet, regardless of how segmented your audience is. Given the CTR’s around banner ads (as opposed to search), publisher’s really struggle to create an advertiser success story that justifies a premium level of CPM. My guess is that product developments (and a dwindling print audience) will cause this to in the future – how far and how fast, we’ll have to see.

2. News Consumption at The Gong Show by Andrew Parker - September 21, 2007

[…] I found this picture via Lightspeed blog and is originally from the WSJ. Due credit to […]

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