Friday, October 17, 2008

Online Newspaper Revenue... still dropping

But instead of blaming their monetisation strategy or a declining product, what have they claimed is the reason? .... According to the New York Times the reason is that they have too many adverts.

So, despite online advertising revenues growing, newspapers claim that with a huge site with lots of adverts comes the awful burdon of generating sufficient advertising dollars across all of it. Those days of generating huge online editions that were not only copies of the paper-based product, but enhanced versions with loads of additonal topics/opinions/comments, may be a thing of the past.


Yes, you did read that right. Newspapers online are considering reducing the size and number of adverts they display (and some are already doing it) .

Note: The problem apparently comes when everyone wants to spend money buying up the homepage, but don't care about the rest of it. Therefore newspapers struggle to find the right online ad sizes that they can sell premium advertising revenue for.

To quote media economist Robert Picard,
"newspapers keep offering an all-you-can-eat buffet of content, and keep diminishing the quality of that content because their budgets are continually thinner. This is an absurd choice because the audience least interested in news has already abandoned the newspaper."

Does this mean...
Perhaps. Or just possibly as Robert Picard says, "they are just trying too hard".

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