Are the sluice gates open for newspaper ad revenues?

Newspaper ad revenue fell almost $2 billion in the third quarter for a record 18.1% decline, according to new statistics from the Newspaper Association of America. What’s worse, newspapers’ online ad revenue fell for the second quarter in a row.

The historic drop resulted from a worsening economy that sharply exacerbated long-term challenges already confronting the newspaper industry, and it affected all kinds of newspaper ads. National ad sales fell 18.4%, classifieds sank 30.9%, and the biggest category, retail, slid 11.7%. Newspapers’ online ad sales, where everyone is hoping some part of the future business model resides, accelerated their decline with a 3% drop. Online ad sales slipped 2.4% in the second quarter.

Reports Adage – Read more on Newspaper and economics

I predict we will see newspapers fail, the economic downturn is the final scene in this play. However, what newspapers have not done, nor most media, is to understand that in a networked society, the currency of advertising has to evolve, that offers more perceived value to both its recipients and its creators. An information ecology and economy judges information on its contextual relevancy, its timeliness and its ability to enable decisions and transactions to be made. Unfortunately, few have been able to grasp this completely and be able to deliver the type of value that signals the potential of survival as the gales of creative destruction whirl around us. The Link Economy is different to the Controlled Content Economy. We need a new logic and common sense and only then can we comprehend this miscellaneous world.

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Posted in: Advertising, Culture, Darwin, Distribution, Economics, Ethics, Link Economy, Marketing, Media, News, Newspapers, Search Econmics, Society, Statistics, Strategy, Trends

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