Media-watchers have found some reasons to be optimistic recently:
- Deutsche Bank thinks the alliance between 17 newspapers companies and Yahoo could stanch the industryâ€™s bleeding much faster than expected, reports Editor & Publisher. Analysts think that the revenue from Yahooâ€™s HotJobs recruitment site, in particular, could add 20% to newspapersâ€™ online revenue growth by the second half of 2008. Taken together, the online boost from the Yahoo alliance could pull newspapers out of their slide and turn them toward revenue growth by 2009, the authors say.
The forecast is positively giddy, given that few facts and figures have been released since the alliance was announced last November. It also seems optimistic in light of signs of a coming economic slowdown and softness in recruitment advertising. One odd note is the studyâ€™s description of the display advertising business as growing â€œgang-busters.â€ In fact, the most recent Interactive Advertising Bureau data actually sees a decline in display ads as a percentage of overall online advertising. While the overall display market is growing, itâ€™s a stretch to characterize it as being on a tear.
- Ad spending on newspaper websites increased 19.3% in the second quarter, according to a Newspaper Association of America survey cited in MediaPost. Of course, the decline in print advertising revenue for the quarter exceeded the total online revenue of the newspapers cited in the study. But itâ€™s nice to see the growth trend continue.
- E&P asks, plaintively, â€œIs Ad Revenue Stabilizing?â€ Thatâ€™s because Wachovia Equity Research reported that newspapers suffered only a 7.2% decline in ad sales in July, which is less than the 7.5% and 8.1% drop-offs reported in May and June. While the news is heartening, itâ€™s probably best to wait for a few more monthsâ€™ worth of data before forecasting a soft landing.
This entry was posted on Sunday, September 30th, 2007 at 5:58 am and is filed under Advertising, BusinessModel, Classifieds, NewMedia, Newspapers, OnlineMedia. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.