The New York Times: U.S. newspaper business network to a standstill

Internet advertising is the beginning of fall

In recent years, the major newspaper companies are fast expanding their business networks, has introduced blog, photo album, podcasts (video sharing) and so on, with hope that the wealth of features to attract advertisers. But now, after 17 quarters of the development of high-speed, the newspapers began to decline in network revenue. According to the American Press Institute's statistics, in the second quarter of this year, the industry-wide network of business income the same period last year dropped by 2.4 percent, only 777,000,000 U.S. dollars. This is also the organization since 2003, the network business income statistics, the figures for the first time in year-on-year decline.

However, the network advertising market as a whole could still be considered as strong. According to TNS Media Intelligence's report, in the second quarter, the major newspaper Web site advertising revenue showed an increase of 7.6 percent.

Newspaper executives said that by adding new features to the site to attract more users, hoping to attract more users. According to Nielsen Online Newspaper Enterprise Association of the United States under various newspaper websites, in August of independent users reached 69,300,000, an increase of 17%.

Popular ad broker

Due to the increasing number newspapers, advertising led to the decline in prices. As the "Washington Post", "The New York Times" reported that such a large, the gold-page ads can be sold per CPM (cost per thousand) 15-50 U.S. dollars. At the same time, various newspapers have become increasingly dependent on middlemen - Internet advertising - to promote a secondary page ad, usually the price per CPM 1 U.S. dollars, which brokers to charge advertisers for the price of 2 U.S. dollars or more . Of course, some newspapers did not through brokers ad sales.

Bain & Company and USA Interactive Advertising Bureau (Interactive Advertising Bureau) recently on the seven major newspapers to a survey conducted in 2007 in the absence of brokers employed in the newspaper Web site, advertising the vacancy rate was 53% higher than 2006's 50%.

In the face of crop failure and avoid middlemen or brokers to choose the option to obtain a small amount of revenue, many newspapers chose the latter. Survey shows that in 2007, the newspaper advertising sold 30% sold through intermediaries, and in 2006 the proportion was only 5%.

"USA Today" web site (USAToday.com) Jiefuweibo publisher (Jeff Webber) pointed out: "If everyone can sell advertising, of course, we do not need intermediaries, but now they are valuable to us." As a USAToday.com shareholders, Gannett in the United States in the second quarter of the network revenue was up 3%. Newspapers and other groups the situation is more severe, with the same period last year, AH Belo's network of year-on-year revenue decline of 12%, EW Scripps group fell 8%, Tribune fell 4%, Lee Enterprises decrease of 9%.

The New York Times Media Group chief advertising officer丹尼斯沃伦(Denise Warren) pointed out that despite the concerns, NYTimes.com is still using a broker. In her view, the broker on the site when surge in traffic to play a larger role, for example, in September, NYTimes.com financial crisis caused by traffic surge, "due to the unpredictable part of this flow, it is not possible in advance ad sales. But if there is in the middle , Will be able to sell additional 'CPM' has been. "

The New York Times Group in the second quarter of this year, the network revenue increased by 13% year-on-year, the latest data indicate that the company's Web site development business slowed down. As a "Boston Globe", "The New York Times," a group of regional newspapers and the media group's website, the company's network of seven or eight month revenue rose only 0.9 percent and 7.9 percent, well below the double-digit in the past The percentage of increase.

Warren said that the two months of data are more unusual, and NYTimes.com display advertising growth was significantly higher than the level of the above-mentioned, but she did not disclose specific data. For podcasts, video and other new business, Warren said: "The new business will certainly bring advertising revenue," and "they are still in the initial stage."

Washingtonpost.Newsweek Interactive is responsible for the vice president of sales Steve Stoop (Steve Stup) said that he was in select brokers this year, simply because the U.S. presidential election led to the surge in traffic, but some advertisers believe that through intermediaries Than the more direct contact with the newspaper to save money.