Skip to main content

Digital Marketing Shift Impacts Newspapers


Advertisers in the U.S. will spend $24.9 billion online this year, according to the latest report from eMarketer.

That estimate is slightly lower than they released in March 2008 -- which predicted that U.S. online advertising spending would reach $25.9 billion in 2008.

Regardless of the economic problems in the market, to be clear, the lowered estimate still represents an increase of 17.4 percent over 2007.

"Even as the potent mix of a misfiring economy and consumer's changing media habits shave advertising dollars from traditional venues, such as newspapers and television, Internet ad spending will continue to grow rapidly," said David Hallerman, senior analyst at eMarketer.

Once again, as previously reported, increased digital marketing spending is coming directly out of traditional media budgets. The growing evidence is undisputed.

Although TV ad spending is set to increase by 7.1 percent in 2008 to $72.6 billion, eMarketer predicts such spending will actually shrink in 2009 by 2.6 percent before resuming 1 to 2 percent growth in 2010 and 1011.

Newspapers are taking an even harder hit. Borrell Associates predicted in March 2008 that newspaper ad spending in the U.S. would fall from $50.8 billion in 2007 to $45 billion in 2012.

Popular posts from this blog

The Subscription Economy Churn Challenge

The subscription business model has been one of the big success stories of the Internet era. From Netflix to Microsoft 365, more and more companies are moving towards recurring revenue streams by having customers pay for access rather than product ownership. The subscription economy cuts across many industries -- such as streaming services, software, media, consumer products, and even transportation with the rise of mobility-as-a-service. A new market study by Juniper Research highlights the central challenge facing subscription businesses -- reducing customer churn to build a loyal subscriber installed base. Subscription Model Market Development The Juniper market study provides an in-depth analysis of the subscription business model market landscape and associated customer retention strategies. A key finding is that impending government regulations will make it easier for customers to cancel subscriptions, likely leading to increased voluntary churn rates. The study report cites the