Google, Yahoo Crushing Print Ad Revenue


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Tuesday Sep 13, 2005

The migration from print to online for news and business information has pushed down the money made from print ads.

Editor's Note: Can you visualize a future where your ads appear in videos online? We want to hear about it on WebProWorld.

In the distant past of 1995, InfoWorld was my primary source of technology information. I found that by following the magazine, and never missing a Bob Metcalfe or Stewart Alsop column, my tech education was progressing nicely. I even discovered that I was better informed than my superiors, and that helped me move up the IT food chain.

An InformationWeek article reminds me of how far the Internet has gained in importance for tech information. That article notes how revenue for the news and trade markets grew 8.7 percent in 2004, but will likely be half that in 2005.

That doesn't come as much of a mystery to those following the online advertising industry. Jupiter Research noted last month that revenue from search engine ads will double within five years to nearly $19 billion.

Yahoo had more than $1 billion in online ad revenue in the first quarter of 2005; that rose to $1.25 billion for the second quarter. Google's second quarter ad revenues were slightly higher at $1.36 billion. All that money comes at the expense of other media outlets, as the print world has seen.

Part of that change has happened as users switched from waiting for the weekly trade journal to arrive to going online for answers. Search engines like Google and Yahoo turn up multiple sources for pretty much every tech issue that exists.

Sites (besides the two mentioned) supported by advertising revenue, and blogs created by individual users, have picked up that traffic. According to research firm Outsell's Market View report, individuals are spending 15 percent less on printed news and trade journals than they did in 2001.

The article discusses how the news and trade industries have seen print ad revenue drop, and that lower cost online ads aren't covering those losses. As online ads gain in importance, a rise in their rates will eventually offset that print ad revenue loss.

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InformationWeek doesn't touch on one aspect of individuals and their purchasing habits, as they might relate to publications like themselves and InfoWorld. That aspect would be outsourcing. As tech companies have aggressively placed jobs in low-cost countries, American employees have found themselves changing fields. Why would someone keep buying tech magazines when embarking on a new career?

With fewer prospects for tech employment in the US, fewer students choose to enter the computer science fields in college. That leads to fewer tech trade readers, print or online, which now impacts print advertising to a much greater degree.

Broadband penetration in the US market has given more households the means to access high-bandwidth video content. News organizations like CBS and CNN have been racing with others to meet that demand, and monetize it via advertising. They can meet the higher expectations of an audience that no longer finds print as compelling a medium. Print media will have to adjust its revenue expectations to match the change in demand.

Discuss this at WebProWorld.

About the Author:
David Utter is a staff writer for WebProNews covering technology and business.

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How Bipolar Is The Internet, Anyway?

By Jason Lee Miller

The Internet is providing more and more insight into that collective unconscious Jung was always talking about. The most recent reflection of collective mood comes from Amsterdam, where a university project is charting the overall mood of bloggers.

Loading Moodgrapher has proved a frustrating endeavor once wind of it hit CNet.com, but interested browsers can get there eventually.

Tracking a mood selection feature at LiveJournal, the Informatics Institute at the University of Amsterdam has produced the tool that updates every 10 minutes to show changes in mood within that realm of the blogosphere.

The tool measures negative mood selections like "enraged," "sad," or "numb," as well as positive moods like "content," "excited," or "happy."

For example, the graphs show the level of various emotions during the days surrounding the London bombing in July. Emotions like "shocked" and "worried" spiked on July 7th, while other moods like "happy" and "satisfied" showed a significant drop.

Just one part of a study on mood prediction, Moodgrapher still has some utility kinks to work out, or so says CNet's Jennifer Guevin.

"It could definitely turn into a cool little tool if some functionality--namely archiving, date selection or location specifics as they relate to weather or local events--were added," suggests Guevin.

About the Author:
Jason L. Miller is a staff writer for WebProNews covering technology and business.

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Is PageRank Important?

Howdy all, this is Chris sitting in for Rafael. In today's WPW section, newsblaze brings up the age-old discussion about the importance of Google's PageRank system. Is this still an important aspect of search optimization or more of a by-product? As you can see by the discussion, some feel PageRank is still very important, while some think the exact opposite. Tell us your thoughts at WebProWorld.

|| Chris||

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PageRank Is Still Important

By newsblaze

I keep seeing people saying that Page Rank isn't important any more but thats not true. When was the last time you saw a PR0 site beating a PR5, given equality in other areas?

Page Rank stands for authority.

For a great definition and set of examples on how pagerank works download the free ebook on the right side of the business strategy site.

...Click to read more

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