Newspapers start to rely on advertisement rather than content

Thursday, October 16, 2008

By: Allison McNeal

Many newspapers have started to merge toward online advertisement.

The World Association of Newspapers stated at the world digital publishing conference that more than 800 U.S. newspapers have signed up for Google's online advertising, which is promoted through Google's AdWords Print Ad Systems.

Since this advancement, Google's advertising has gradually gained opposition by many industry leaders.

Moritz Wuttke, chief executive officer in Asia & China of the media sales company Publicitas, said that "it's time for newspapers to stop putting 'all their ads in one basket' and start challenging Google."

He also stated that it was unnecessary for Google to have so many companies join their network, because newspapers should work with other individual companies to expand their organizations.

Other companies, such as Comcast, Dell, and General Motors, are trying to gain more support and money through micro-blogging sites like Twitter.

Micro-blogging allows individuals faster access due to technology and is a common social networking site.

Online newspapers have invested heavily in micro-blogging sites, such as one Web site in China, which spends 80 percent on blogging compared to 20 percent on traditional advertising.

Even with the move toward blogging, "newspaper companies need to regain their advertising spending from other non-media companies," Wuttke said. "To overcome this competition newspapers need to copy Google and other online sites, by looking at the sales channel and [their] pricing model."

Will companies want to face the competition? Or will they align with Google and other large media corporations?

If companies want to gain revenue and become a media giant, online newspapers will start to move toward independent organizations.

This movement would showcase the content of newspapers, rather than placing emphasis on advertisements.

Micro-bloggers and other individuals will have to wait and see what online newspaper organizations will decide in the months to come.

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