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More Bad News for Print Media Print E-mail
Written by Jeffrey Herschler   
Monday, 02 July 2012 10:09

According to the Newspaper Association of America, print newspaper advertising revenue (measured in 2011 Dollars) has plummeted from a peak of about $63,000 million in the early 2000's to about $20,000 million currently. Adjusted for inflation, print newspaper ad revenue is at levels not seen since the early '50's. Click HERE to view chart. The news is similar for magazine advertising as readers (and advertisers) move to digital platforms. For example, SmartMoney recently announced it was closing its print edition.

And the trend is not expected to reverse itself. With regard to audience behavior, Total Digital (Internet + Mobile) dwarfs Total Print (Newspapers and Magazines). The typical American is spending over five times more time digesting digital content than traditional print content (232 minutes per day vs. 44 minutes per day). Advertisers will continue to follow the audience. According to eMarketer:

"Shifts in ad spending remain behind the shifting consumption patterns of the US population. While TV is clearly getting its fair share of dollars, the amount of ad spending going toward digital does not yet reflect the amount of time consumers have invested in these areas of their lives. Mobile, for example, has a more than 10% share of adults' media time each day, but less than 1% of ad dollars, eMarketer estimates. On the flip side, newspapers and magazines continue to command ad dollars far ahead of their importance in consumers' day."

Two trends in healthcare make this news particularly relevant for providers. States Tara Pihn, healthcare pundit and futurist, "Payment models based on outcomes will drive consumer choice towards quality providers. To attract patients, physicians and facilities will feel increasing pressure to showcase their excellence via advertising. Meanwhile, margins will continue to be squeezed as the nation attempts to bend the cost curve. Thus providers will be compelled to use the most cost-effective advertising solution, which is digital."

See related article: Stop the Presses: Online Ad Spend to Exceed Print this Year

Last Updated on Friday, 06 July 2012 08:10
 


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