Newspapers that make the move to online-only risk losing 75 percent of their revenue and a decline in Web traffic, according to researchers from City University in London.
Their study focused on the Finnish financial newspaper Taloussanomat, which stopped its print version and went online- only in December 2007. The move was made after the paper had suffered significant losses.
By going online-only the papers costs were reduced by 50 percent but its online traffic decreased by 22 percent and revenues fell by more than 75 percent.
Majority Of Americans are Influenced By Online Reviews
The majority (84%) of Americans say online customer reviews have an influence on their decision to purchase a product or service, according to a new survey from Opinion Research Corporation.
Only 28 percent of respondents said they had posted their own feedback online while 66 percent had checked some type of online review forum when looking to purchase a specific brand of product or service.
New Venture Hopes To Make Newspapers Money Online
Three veteran media executives have partnered to launch a company with the goal of helping struggling U.S. news papers and other traditional media make money online by charging readers for content.
Journalism Online says it " will quickly facilitate the ability of newspaper, a magazine and online publishers to realize revenue from the digital distribution of the original journalism they produce."
Auto Makers Making Good Use of Online Advertising
Research from comScore recently showed that auto makers are doing pretty well with online advertising. In particular, they are using the medium to push SUVs. comScore explains one example:
Idol’s Bad Timing Drives Fans Online
All day on Google Trends, the list of top trending search terms has carried several variations of keyword phrases related to Adam Lambert’s performance of a Donnie Darko soundtrack version of Tears for Fears’ “Mad World.”
Despite Recession, US Online Ad Spending Continues to Rise
Research shows that marketers are spending more on online advertising and less on ads in newspapers, magazines, and radio. According to eMarketer, each year, ad spending on online media is growing by at least a percentage point.
eMarketer also projects that online ad dollars will jump about 5% by 2013. Here’s how they see it playing out:
Circuit City to Be Resurrected Online
Early this year, Circuit City announced that it was closing all of its stores after being in business for 60 years. Gizmodo is pointing to a screenshot from Circuit City’s website now, however, suggesting that the company will be back in online form.
Online Ads Need to Be More Engaging
A study from McPheters & Company in co-operation with Condé Nast and CBS Vision found that magazines and TV ads are more effective than online ads. The study looked at 30-second TV ads, full-page 4-color magazine ads, and Internet banner ads in standard sizes.
They used eye-tracking software to determine the circumstances for when online ads were actually seen by participants. Highlights of the study include:
Murdoch Says Newspapers Must Charge For Online Content
News Corp. chief executive Rupert Murdoch said on Thursday that newspapers must find a way to charge for online content to make up for declining ad revenue.
"People are used to reading everything on the net for free, and that’s going to have to change," Murdoch told attendees at the annual Cable Show event in Washington, D.C.
Murdoch cited The New York Times as an example, saying it has a "very, very good Web site." He said he did not believe the paper would make any money online unless it changes its current business model.
Online Journalists Optimistic About Future
Online journalists are more optimistic about the future of their profession than those who work in traditional media, according to a new survey by the Online News Association and the Pew Research Center’s Project for Excellence in Journalism.
A majority of those surveyed (57%) say the Internet is " changing the fundamental values of journalism." The biggest changes, the respondents said, were a loosening of standards (45%), more outside voices (31%) and an increased emphasis on speed (25%).