TimmyHNewspapers Struggling Online
August 13th 2008 02:33
While newspapers continue to grow their online readership they are struggling to convert that advantage into profit. As they continue to lose money on print circulations the challenge remains, how to remain economically viable while providing quality editorial content.
In the last year Newspaper readerships have grown over 10 percent every quarter. But online profit has remained stagnant, barely increasing. The problem for consumers is that if newspapers can’t find a way to monetize their online traffic, they will be forced to reduce the size of their newsrooms even further.
The increase in unique visitors for newspapers grew by some 12.2 percent last quarter, which holds firm just below that of Google. But the lack of classified advertising is largely to blame for the lack of online advertising profit. Most online classified listings come from “up-sells” of existing print listing, but as fewer people place ads in print the opportunities for up-selling are dwindling.
Media General, one of the few services to report on its online revenue says that classified advertising is actually falling, whereas online display advertising revenue is still increasing by some 14 percent per quarter.
But when you factor in print loses, Media General is still going backwards, like most news services, falling by more than 10 percent which equates to more than $20 million.
The general trend in the future will be less online advertising through news services, who in response will be forced to increase display and interactive advertising to cover ever increasing costs.
In the last year Newspaper readerships have grown over 10 percent every quarter. But online profit has remained stagnant, barely increasing. The problem for consumers is that if newspapers can’t find a way to monetize their online traffic, they will be forced to reduce the size of their newsrooms even further.
The increase in unique visitors for newspapers grew by some 12.2 percent last quarter, which holds firm just below that of Google. But the lack of classified advertising is largely to blame for the lack of online advertising profit. Most online classified listings come from “up-sells” of existing print listing, but as fewer people place ads in print the opportunities for up-selling are dwindling.
Media General, one of the few services to report on its online revenue says that classified advertising is actually falling, whereas online display advertising revenue is still increasing by some 14 percent per quarter.
But when you factor in print loses, Media General is still going backwards, like most news services, falling by more than 10 percent which equates to more than $20 million.
The general trend in the future will be less online advertising through news services, who in response will be forced to increase display and interactive advertising to cover ever increasing costs.
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Comment by Chris Champion
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Newspapers were supposed to disappear about 25 years ago due to prohibitive newsprint prices caused by dwindling forest resources. Reports of their demise have proved to be exaggerated. However, there is no doubting the accuracy of the trends in your post, and newspapers having been trying for some time now to find alternative income streams to counter dwindling classified advertising revenue. The internet - both the cause and the potential solution - has not proven particulraly newspaper friendly.
Newspapers are not going to disappear just yet, but as your post clearly shows, the future is unclear.
Regards,
Chris
Comment by TimmyH
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