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BizReport : Advertising archives : September 15, 2006

Traditional Media Companies Are Holding Their Own In Digital Space

As reported in the Financial Times this week, Veronis Suhler Stevenson (VSS), a private equity group, produced a new study showing that contrary to people’s expectations, traditional media companies are holding their own in the digital space.

by BizReport

More and more traditional US media companies are increasing their share on online advertising sector relative to internet rivals such as Google and Yahoo.

The study reports that of the $22bn expected to be spent on online and mobile advertising in the US, traditional media groups’ share is forecasted to be 37% up from the 23% in year 2000.

By the year 2010, it is expected that internet and mobile advertising is due to reach $44bn, traditional media companies are expected to capture $17bn, 39% of the total.

High-speed internet connections have made possible the use of the web as a real alternative source of information and entertainment. With the widespread use of social networking sites such as MySpace, young people spend more time online.

Many media companies, recognizing the change and potential danger to disrupt their traditional business, have made acquisitions to boost their web activities. Rupert Murdoch’s News Corp has been the most aggressive, spending nearly $1.5bn and acquiring MySpace last year.

Tags: Financial Times, Media Companies, MySpace

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  • While they are holding their own, I don't think that they are a threat to pure internet plays yet.

    They are growing the space, but not at the expense of the online marketers. I think that it is good that they are becoming more successful as it helps build up the overall industry online.



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