Bad news, good news, bad news

First the bad news: Advertisers are deserting newspapers at an alarming rate. Not just classified advertisers, but also those who have traditionally bought display ads.

The good news? The advertisers fleeing newspapers are going online. Many newspapers have relatively popular online sites. Thus they have the potential to get that migrating advertising. Sure those ads don’t bring in as much revenue as they did in print. But it’s better than nothing, right?

Now the really bad news: Newspapers aren’t getting that advertising. In fact, they are getting less of it now than they did before (After some promise two years ago, stats from local media researcher Borrell Associates show that newspapers’ share of the local online market is now 27.4 percent, down from 35.9 percent in 2006, even as the total segment has seen 57.2 percent gains last year). Why? There reasons are numerous and highly dismaying. The following are from a July 30 post by paidcontent.org.

1. Newspaper advertising sales teams either can’t or won’t sell online. “Unfortunately, salespeople and media buyers, who in most cases rely on commissions, have a reason to dislike online ads because of the lower dollar amounts online brings to the table,” according to the paidcontent piece.
2. “When newspapers do sell ads on their sites,” the paidcontent post goes on, “they typically look for larger marketers to buy banner ads. But much of the growth in online ad spend is being driven by small, local businesses like pizza places and plumbers who want to attract customers looking for area services. And since search is key to attracting those local customers, that’s why internet companies like Google (NSDQ: GOOG) and Local.com have taken a 53.3 percent share of local online ad sales.”

Blogged with the Flock Browser

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