Re: Newspapers are doomed?
MARGARITA <b_o_n_a_at_hotmail.com> WROTE:
> Hi, I've beed doing a research on Internet vs.
> newspaper advertising recently and I got a feeling that
> the world is not big enough for both of them. To quote
> Ted Turner from Time Warner: "I wouldn't want to be in
> the newspaper business. I think the Internet is going
> to eat them first" (Fortune, Jan 10,2000)
Adding to the comments already posted on this issue,
here's another insight...
Ted Turner I think has got it right!
When you look at most daily newspapers as a business,
usually up to 50-60% of ad revenue comes from
classified advertising - primarily recruitment and
property. When you consider that the most expensive
cost (after newsprint) to running a newspaper business
is the cost of editorial and news, and that a paper
runs a ratio of around 50% editorial to 50% advertising
for normal display advertising on news pages.
Conversely, classified advertising is 100% pure
advertising and therefore probably accounts for up to
75%(or at least the significant proportion of the
profit).
Recruitment and property web sites seem most suited to
the internet. The ability for a user to search for
jobs and properties and click to get more information
is far more effective than doing it in press. Sooner
or later, company's and agents are just going to
replace their advertising with online alternatives
where the cost is usually more efficient and process
quicker than the newsprint version.
Our company, a fairly new startup, advertises all our
positions on a number of job websites such as
Jobsdb.com here in Asia and have got a lot of excellent
candidates for positions we're filling. If newspaper
profits begin eroding, then newspapers will be doomed.
Antony Young
CEO
AdXplorer - The Digital Marketing Specialists
http://www.adxplorer.com
antony_at_adxplorer.com
Received on Mon Sep 18 2000 - 15:47:27 CDT
