Skip to main content

Newspaper Advertising Losses Could be Much Worse


Online advertising was predicted to gain share of U.S. marketer spending by more than 10 percentage points between 2009 and 2015. However, the current spending on digital media -- including internet and mobile -- has not yet risen significantly, according to the latest assessment by eMarketer.

Among the major media of television, internet, radio, mobile, newspapers and magazines, U.S. adults still spend the most time each day with TV. eMarketer estimates adults watched television for 42.9 percent of the time they spent each day with those media in 2010, and ad dollars align closely, at 42.7 percent.

The internet, by contrast, took up 25.2 percent of U.S. adult daily media time in 2010, but received just 18.7 percent of marketer's ad budget.

"Those of us focused on the internet channel have complained for years that it hasn't been getting its fair share of media dollars based on time spent," said eMarketer CEO Geoff Ramsey. "However, the precise extent of that imbalance has been shrouded in mystery and exaggeration. Now we know it's a gap of 6.5 percentage points."

Mobile ad spending is also behind. It claims 8.1 percent of time with these media, but most of that is devoted to communications activities marketers are not looking to interrupt.

Magazines and newspapers, meanwhile, still account for far more advertising budget investment -- relative to the known consumer consumption (or more to the point, the lack thereof).

eMarketer formed its estimates through a meta-analysis of data aggregated from research firms and other organizations that track advertising spending and time spent consuming various media.

These spending and consumption patterns mean that print media receive the most ad spending for each hour adults spend with them. Print ad spending has dropped considerably by this metric since 2008, but remains high.

Even television gets only a third of the ad spending per hour that print does. If you think that the U.S. newspaper and print magazine industries are in dire trouble now, then imagine how bad things could get for them when marketers react to the market reality.

When you consider that just $0.12 was spent on internet advertising for each hour adults were engaged on the web last year, and that mobile got only one penny per hour of engagement -- it's a major disconnect. That said, today's savvy online marketers may actually be able to benefit from this scenario.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

5G Fixed Wireless Access Revenue to Reach $24B

Available Internet access at an affordable cost is essential for everyone to participate in the Global Networked Economy. The deployment of fifth-generation (5G) wireless communications infrastructure is enabling the introduction of lower-cost broadband services in some markets. Fixed Wireless Access (FWA) allows mobile network operators (MNO) to deliver high-speed Internet connections in areas that have either insufficient or no prior wireline broadband access services. It's also used in urban, suburban, and rural areas where fiber optic communication is considered too expensive to install and maintain. With this new technology, MNOs have the potential to provide broadband capability at similar levels to fiber optic networks. Fixed Wireless Access Market Development Therefore, FWA can be used to supplement existing wired broadband Internet service offerings, provide additional broadband capacity, or act as a backup service for home or business applications. Although FWA is well es