Monday, October 26, 2009

Ads Returning, But Not At Newspaper Web Sites

Newspaper sites are not holding on to ad dollars, even while overall Internet advertising is creeping back. Newspaper sites are the patent-leather stilettos of the online world: they get used for special occasions, but other shoes get much more daily wear. The beneficiaries of this behavior are networks and exchanges like Advertising.com from AOL and DoubleClick Ad Exchange from Google, which dominate the buying and selling of extra space.

At nonnewspaper sites like Yahoo and Google, revenue from display advertising — the image-based ads on Web pages — seems to be returning. Yahoo’s display revenue on its Web sites increased 2 percent in the third quarter, though it was down from a year earlier. Display revenue increased at Google from a year earlier.

Over all, the Internet is the only advertising medium expected to grow this year in the United States, rising 9.2 percent, to $54.1 billion, according to figures released this month by ZenithOptimedia, a media service firm.

Newspaper sites cannot seem to catch that wave. The New York Times Company reported a decline in ad revenue at its newspaper Web sites of 18.5 percent this quarter compared with the third quarter last year. Advertising revenue at Gannett’s newspaper sites also declined. The McClatchy Company was an exception, with online advertising revenue rising 3.1 percent from a year ago, though the rate of growth slowed. (Other major newspaper companies have not yet reported their revenues for the most recent quarter.http://www.nytimes.com/2009/10/26/business/media/26adco.html

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