Friday, February 15, 2008

Readers are not created equal

NAA published a press release calling 2007 a “banner year” for newspaper sites. WSJ blogger Carl Bailik called up Nielsen-Netratings to see if newspapers really had increased their audience share over the last year. He found out that the audience grew by 38%, but the online revenue told a different story. In 2007, newspapers grew by 26.9, reports Borrell Research, but in 2006, they grew by 44.1%. This drop means that newspapers and other traditional media companies do not quite understand how to monetize growing audience.

In addition, lots of newspapers and TV stations tell their stockholders that even though they are losing print/on-air subscribers they are gaining online users. The news that online revenue was down, while online users grew proves that it a myth that online users have equal value to a user of print or broadcast.

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