Meaningful Comparison – Newspaper v. Online Ad

November 24, 2010 § Leave a comment

This is not news.

WSJ wrote a story about internet surpassing newspaper in ad revenue by 2014. According to PricewaterhouseCoopers’ Global Entertainment and Media Outlook, online ad, mobile excluded, is forecast to expand to $34.4 billion in 2014, while newspaper ad revenue continues to drop, hitting $22.3 billion in 2014.

“Shifts in consumer behavior, potential for inventory on the Internet, and increased broadband penetration in the U.S. are key factors in PwC’s projections, according to David Silverman, a partner at PwC.” (WSJ)

These three factors, shifts in consumer behavior, potential for inventory on the Internet and increased broadband penetration in the U.S. are what makes this comparison meaningful, for they are internet exclusive.

1. More and more people seek information online instead of from newspapers.

2. Newspaper has reached its capacity long time ago whereas there is still plenty of room for internet, whose place is larger in the first place, to grow.

3. The broadband penetration in the U.S. is 64% currently, and is still expanding. Newspaper circulation has been tumbling down since God remembers when, till a recent 5% reported this Oct, according to Audit Bureau of Circulations data.

 

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