Yesterday, the print edition of the financial times contained an article about how media groups are being affected by the decline of advertising revenue (which is migrating to the web)
Two interesting stats:
Merrill Lynch expects a 2.6% gain in overall US advertising spend this year BUT anticipates that newspaper advertising will decline by 1.5%. Lehman brothers are also pessimistic, expecting a drop of 4% this year
But there are two interesting caveats
a) They feel that the US television market is still not affected so far. In contrast, the UK, where commercial television advertising is a much smaller market, a bigger portion of the advertising pie had gone to Google. According to the BBC
Google’s 2006 UK revenues are expected to surpass Channel Four’s predicted £800m ($1.5bn) returns. Google will then overtake ITV1 within 18 months. (ITV1 is UK’s largest advertising network)
b) Another interesting trend the same article mentions is: the perception that local newspapers are more valuable than their more geographically larger versions. For instance, the interest in Los Angeles times (local: especially, local to film and media folk) as opposed to its parent the Tribune (the second largest newspaper in the USA)
Ironically, if I look at my own newspaper buying trends, then the FT is practically the only newspaper I buy. The rest is all web!