Media News - Tuesday, October 14, 2008
U.S. newspapers see growth in online advertising slow to a crawl
Already facing a grim economic forecast, U.S. newspapers are digesting
another piece of bad news: The growth in online advertising they saw as
their salvation has slowed to a crawl. In the past few years, newspaper
companies have been rapidly expanding their Web presence - adding blogs,
slide shows and podcasts - in the belief that if they built it,
advertisers would come. But after 17 quarters of ballooning growth,
online revenue at newspaper sites is falling. In the second quarter, it
was down 2.4 percent from a year earlier, to USD 777m, according to the
Newspaper Association of America. It was the only year-on-year decline
since the association began measuring online revenue in 2003. The
decline in revenue came even as overall online advertising increased.
Display advertising, the graphics-rich ads that newspapers carry, grew
7.6 percent in the second quarter, according to TNS Media Intelligence.
(International Herald Tribune)
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