Though print media is far from dead, there is no doubt that the Internet has taken away a good portion of its thunder. Virtually all major newspapers and magazines have already built up strong online presences, but it seems that they are far from being done with spending big bucks to further solidify their online clout.
A recent eMarketer report titled, “Newspapers and Magazines Online: Content Is Still King,” indicates that newspaper and magazine publishers in the U.S. will spend almost $537 million in 2007 on online advertising focused on boosting their Web presence. This would reflect a 36.4% increase from 2006. All media companies, including television and radio broadcasters, are expected to spend $1.3 billion this year, a 28.4% increase from last year.
By 2011, online ad spending by newspaper and magazine publishers is expected to reach $1.3 billion.
Lisa Phillips, senior analyst at eMarketer and author of the report, points to print ad revenues that have headed towards online destinations, as well as big magazine brands that “have been shuttered in favor of branded Web sites.”
Phillips points to figures released by Veronis Suhler Stevenson that expect newspaper and magazine publishers to spend nearly $7.7 billion on digital and online content and advertising in 2007. Much of this money will be spent on creating Web 2.0 features on these sites.
This figure is expected to increase 122% to $17.1 billion by 2011.
“While print products will not go away—any more than radio disappeared when TV arrived—publishers must adapt to serving two audiences, one online and the other offline,” said Phillips.
Source:
http://www.emarketer.com/Article.aspx?id=1005507
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