Grounded In Reality

The revenue model for traditional media needs fresh thinking.  Mentioned in today’s Journal (subscription required), “Papers’ Web Hopes Dim a Bit: Ad Growth Online Slows as Sources for News Burgeon.”  Highlights below:

• Online ad spending for newspapers will likely fall to a percentage in the low 20s this year from 28 percent last year, Borrell Associates estimates.
• Primarily, it seems that marketers need more convincing when it comes to moving their ad dollars online.  A survey of 273 U.S. advertisers last year found that 67 percent of the companies with annual revenue of $500 million or more will dedicate less than $1 million to online ads, according to Jupiter Research.
• Media buyers also indicate marketers are beginning to look beyond traditional journalism sites, realizing many news junkies go elsewhere, too.

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