Big Media Feels The Fear

[dutter]

Though its been suggested for some time, Reuters senior VP and GM Steven Schwartz confirmed to his audience at the Syndicate Conference that the competition for advertising dollars with the Internet has the traditional media powers very concerned.

The multi-billion dollar business of online advertising took center stage when Schwartz spoke at the session, "Syndicating the Publishing World" at the Syndicate Conference.

He noted how Internet advertising is up 26 percent this year, to $14.7 billion. Online, people spent $2 billion for content, and that came from only 12 percent of Internet users.

Reuters doesn't suffer the same issues as many media companies. Schwartz observed that they don't have a print or TV bias when it comes to creating content.

"It used to be that the mainstream media could get away with speaking with the voice of God and being the high priests of news. Consumers will no longer accept that. We in the mainstream media have to adapt," Schwartz said.

Reuters acts as both publisher and syndicator. About one billion people read their news each day. And more of those people get their news online instead of from big media sources, like newspapers and television.

"It's how consumers want it, when they want it and where they want it," said Schwartz. "What is clear is that consumers will define this, not media companies."

[Irishjim]

As the webmaster for a regional boating newspaper, I've been watching this trend for some time.

Although most advertisers feel more comfortable with the print copy of our publication, www.azbw.com some are coming to us after seeing the website and asking for online advertising... not print.

Very timely topic. Thanks.

[Irishjim]

As the webmaster for a regional boating newspaper, www.azbw.com I've seen this trend for some time.

In recent months, we have had a number of advertisers who have come to us because of the website and want to advertise there, eschewing the traditonal print ads.

Very timely topic... well done.

[scot184]

I think one of the major advantages of online advertising is the ability to track the ROI. In tradtional print/tv ads, all you have to go on is a promotional code, promotional phone number, or word of mouth from the customer telling you where they were referred from. On top of that, you can optimize online, and put your ad exactly where you want it. Print and TV simply can't do that.

[MtraX]

TV will catch up in the next 5 years as it becomes more of a multimedia platform... Google will be moving towards PPC on TV and with giving TV viewers the ability to 'click' on 'text' that would start giving the ROI figures. Further on the mobile platform they will also be making inroads. But you're right, major advantage currently of tracking advertising dollars online...

[PumaSpirit]

"...Internet advertising is up 26 percent this year, to $14.7 billion. Online, people spent $2 billion for content, and that came from only 12 percent of Internet users."

Impressive numbers, dutter, we must be doing something right in our fabulous, worldwide cyber community. Seems the new frontier is proving profitable and the sharks are starting to zero in on it :)

What interests me though is how these numbers break down. What is the percentage of advertisers (and dollars spent) who contibute their small part of those billions of dollars on different advertising mediums such as ppc, banners ads, email campaigns, newsletter ads, etc.

Does anyone know of such stats being available somewhere one can take a peek at?

[bj]

One wonders if a part of the reason Network Neutrality is threatened is because of this trend.