(Source) The rapid growth of online advertising is expected to see the sector overtake US newspaper advertising in terms of size by 2011.
The forecast comes against a backdrop of declining advertising sales reported by newspaper groups this year in spite of continued strength in the US economy.
All media survives because of advertising. Sponsors pay for newspapers, television spots, radio advertising, magazine ads, and even Internet media. Many blogs are financed by advertisers. Even some websites make their pay through sponsored links, banner and display ads, or in some cases through pay-per-click ads. But lately the Internet has been gaining in total ad spending on traditional media, particularly print advertising. Does that mean print advertising is dead?
Not likely. There will always be people who prefer print media over the Internet. The radio didn’t die when television came along. Free TV didn’t go by the wayside when cable gave us better movies. DVDs didn’t kill VCRs and the home video didn’t destroy the movie theater. In fact, some of the biggest grossing box office smashes in history came after the advent of the VCR and DVD. So I’m betting that the Internet won’t kill print media either.
Media Advertising Realities: Are They Related?
But there is no denying reality. Print media advertising is in decline. Internet media advertising is on the rise. Are the two related?
One might be fooled into thinking that they are. I’m not convinced. All new media see an early spike, a plateau, then more spikes and plateaus as more people discover the media and begin to use it. A part of that is due to the nature of technology and the economics behind it. New developments typically are costly. The first people to try out the new technology are the ones who can afford it. Early sales make money for the manufacturers who can then improve their products and make them more affordable for everyone else. It’s a useful cycle and one that can’t be broken.
The Media Fear Factor
Another thing that affects new media is the fear factor. Most people are a suspicious of new media at first. It takes some time to play around with it and get comfortable. After people are comfortable with new media they can take the next step and go in a little deeper - like a child getting comfortable with the deep end of the swimming pool. The Internet has finally reached a point where a large number of people are becoming familiar enough and comfortable enough with it as a medium that they can trust it to some degree - not all the way yet, but to a large degree. That’s a good thing for the Internet.
The Print Media Life Cycle
But news print media is at a different juncture of its life. It’s in the waning years. People are losing trust and confidence in the medium. Why? Partly because it has let us down. Journalists are no longer hailed as the saviors of populist causes as they were once thought to be. Walter Cronkite was once referred to as the most trusted man in America. If there is a most trusted man in America today you can bet it isn’t a news media personality. And that’s one of the reasons that advertising is in decline in print media. I wouldn’t count on that trend reversing any time soon.
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