Friday, November 21, 2008, 10:40PM ET - U.S. Markets Closed.

Why Online Ad Revenues Are Falling for Newspapers

Posted Oct 13, 2008 04:20pm EDT by Sarah Lacy in Investing, Internet, Media, Recession

You don't have to look much farther than Yahoo's stock to see how nervous investors are about the future of online advertising. And no doubt, all eyes will be on Google's earnings announcement this week to see if there are any cracks showing up there. But one place that's already seeing a fall off in online advertising revenues are the newspapers, according to an article in the New York Times. The second quarter of 2008 showed the first decline in newspapers' online ad revenues, since the Newspaper Association of America started tracking it.

Surging online ads were supposed to be this moribund category's salvation. Is the growth done already? Om Malik, a long time journalist and blogger, joined me from San Francisco to discuss what newspapers are doing wrong.

15 Comments

you
Yahoo! Finance User - Monday October 13, 2008 04:40PM EDT

Newspaper Revenue Model Severely Jeopardized in Current Economy http://metaprinter.com/?p=427

you
gama32810 - Monday October 13, 2008 05:33PM EDT

Newapapers shot shut up on politics. I for one wil not buy a newspaper that does not support Republicans

you
analogrf - Monday October 13, 2008 07:42PM EDT

People are becoming immune to on line advertising just as they are to print advertising. I never look at the ads, just at what I am out to find.

Tom S
Tom S - Monday October 13, 2008 08:16PM EDT

Newspapers like the New York Times are so biased and full of propaganda that they effectively alienate 1/2 of their potential customers. They spew so much bias and Liberal propaganda that a lot of readers wouldn't take the paper even if the subscription fee was $0. Do you wonder why these papers are failing? If the mainstream media learns to once again report unbiased comprehensive, accurate news instead of Soviet-style "Pravda" propaganda, they might survive?

J R
J R - Tuesday October 14, 2008 03:40AM EDT

Malik's clueless. Newspapers are the last one in this market and deliver a poor result for the user. More important they are still green about how they target and sell their inventory. It's late in the game for anyone to get "good at selling" online inventory and they are too little too late compared to more internet publishers

biggaman927
biggaman927 - Tuesday October 14, 2008 06:53AM EDT

Your countries are too large geographically and pop. wise for effective newspaper adverts. I live in Trinidad and Tobago 144 sq. miles and I takes on one daily paper to spread the news LOL or one radio ad. Also there are too many private companies who offer varying services that really waste your time and money when you gotta run around to all of them just to get the best deal. There must be a way to efficiently get your ads out with a minimum cost. I think USPS has a good alternative but it`s a lil 2 expensive for me. cost

biggaman927
biggaman927 - Tuesday October 14, 2008 06:55AM EDT

Your countries are too large geographically and pop. wise for effective newspaper adverts. I live in Trinidad and Tobago 144 sq. miles and I takes on one daily paper to spread the news LOL or one radio ad. Also there are too many private companies who offer varying services that really waste your time and money when you gotta run around to all of them just to get the best deal. There must be a way to efficiently get your ads out with a minimum cost. I think USPS has a good alternative but it`s a lil 2 expensive for me. cost

Yahoo! Finance User
Yahoo! Finance User - Tuesday October 14, 2008 09:15AM EDT

Newspapers cut their own throat a long time ago for short-term gain. They literally pushed away small advertisers to go after the big money. Online ads just got so annoying people became desensitized to them. ESPECIALLY the stupid annimated ones. In fact I finally decided I had enough so I now block advertisers like doubleclick at my router. It just brings a smile to my face everytime I go to a website and I get a blank box where an ad should be. I know we're a consumer society but geez, get the damn spam out of my face.

you
Brad - Tuesday October 14, 2008 09:26AM EDT

And then Paul Krugman, another "liberal media elite" pulls down the Nobel prize for economics. He did not receive the prize because his writing on the economy over the last several years has been blasting Republican ready-fire-aim, ideology-over-reality economic policies. He won the prize because he was correct. Media is a matter of perspective. If the mainstream media appears to be miles from where your sitting, it's not because of where they are...it's because you've chosen a spot for yourself that's WAY too close to the fringe. We all need to spend a little less time pointing fingers and a little more time looking in the mirror.

you
Bruce - Tuesday October 14, 2008 09:35AM EDT

This also has to do with the ad sales department. This is still a new unknown resource to the local advertisers in medium to small markets. Ad reps need more traiing to sell the concept to new entrants and be honest about the difference between hits, page views, unique visitors, and return visitors. Ad sellers need more tools to align ads with changing content so it is easier to match the ad with the story content.

you
Tim A - Tuesday October 14, 2008 02:37PM EDT

so does this mean that I should not pic on the Scottrade ad beside this post?

you
Mark K - Tuesday October 14, 2008 02:48PM EDT

I use to enjoy looking at local and national media but sense the current election bias of sticking obama in my face every half hour and trying to brainwash me for his socialistic plans for america it all made me realize its all propaganda and I do hope the young people of the us dont buy into this crap!!!!!!!!!!!! god help america land of the free!!!!! every hour I hear the press pushing this racial bias from the american public and will white people vote for a black president!!!!!!!! color should never be a deciding factor only character!!!!!! why dont they ask the 96% of black americans why there voting black only!!!!!!! there afraid to say it!!!!!!!!!!!!!!! the media is dead

you
Yahoo! Finance User - Tuesday October 14, 2008 02:55PM EDT

its seems odd to me that the wall street gamblers and the washington good old boys take care of themselves , why cant the government step in and stop all this trading by professionals for large profits....if you like a company and buy the stock thats fine and stop all this gambling and profiting that hurts the normal stock holders of companies...second why cant the government let people who have 401k, ira, or other retirements accounts take the money and paydown/refinance their mortages(primary resd only) with no tax owed to the government. the other thought i had was to lchange the law on roll overs to roth without paying tax to the government, many of us who are retired are taking big loss in the markets because of the gamblers on wall street that control millions of dollars that trade buy computer systems and drive stocks up or down and the government should change the law so that ira's,401k's can be converted to roth ira's without any tax being paid, this would help the retired people and give them more money to live on so they dont have to sell their homes and cars to eat..

you
Yahoo! Finance User - Tuesday October 14, 2008 04:44PM EDT

this guy is a self promoting wannabe,

C B
C B - Wednesday October 15, 2008 11:56AM EDT

Newspapers...they can all pay with their numbers anyway they want......major layoffs......raise their profits......so little staff.How may will there be in 10 years. My husband left the newpaper business 7 years ago makes 6 figures online at one of the major online companies. He was laughed at by the newspaper staf when he left for onlinef.....ahead of his time he was. And the people who laughed lost their jobs to budget cuts....are unemployed.Newspapers aren't hiring anything but kids right out of college at a low low salary.Numbers they always can be played with..............

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