Professional Documents
Culture Documents
1
News Media Platforms… Ubiquitous and
Complex
Marketing Newspaper
Efforts PRODUCT
S
Marketing
Advertisers Efforts
Increase in Ad
content
Ad Space more
attractive
Subscribers
2
State of the Newspaper Industry
• Current trend
– The good – Declining profitability
– The bad – Mounting losses
– The ugly – Spate of bankruptcies
3
Print Circulation is Declining
4
But Ad Revenue Declines Have Hurt the
Most
Advertising and Circulation Revenues at Newspapers Over Time
60,000
50,000
Revenue in Millions of $
40,000
30,000
20,000
10,000
-
2001 2002 2003 2004 2005 2006 2007 2008 2009
Ad Revenue (Millions of $) Circulation Revenue (Millions of $)
5
Why is Print Advertising Revenue Declining?:
Outside Media Landscape
30
TOTAL ONLINE ADVERTISING
25
(Billion $)
BILLIONS OF $
0
2004 2005 2006 2007 2008 2009 2010 2011
60
50
40
30
46.7 47.4 46.6 42.2
44.9
20 34.7
24.8 22.8 20.7 18.9 17.3 16.4
10
0 1.2 1.5 2 2.7 3.2 3.1 2.7 3 3.2 3.4 3.4 3.5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Digital Print 7
But there are cannibalization concerns
The cannibalization of print ad revenues is also a problem. One common
scenario is that a trusty local print advertiser -- a car dealership, say -- that
used to spend $20,000 a year on advertising might now spend a quarter of
that with the newspaper online and nothing in the print product. Thus, the
newspaper company is now selling more digital ads, but the new sale is
taking away from its bottom line.- WSJ, July 31, 2008
8
Role of Marketing Analytics?
9