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BizReport : Research : October 30, 2007

Newspapers, magazines increase online ad spend

A recently released report from eMarketer says newspapers and magazines will spend over $500 million to promote their online and print brands during 2007, and that this figure will almost double by 2011.

by Helen Leggatt

Newspaper and magazine publishers are well aware that their print circulations are dropping, with readerships moving online and revenues from print ads falling. This rapid digitization is being fuelled by social networking, RSS, forums, blogs and even mobile communications.

Print ad budgets are being diverted online to sites such as Monster, Craigslist and Zillow.

eMarketer estimates that newspaper and magazine publishers will spend $536.8 million in 2007 to market their brand online, and that this figure will rise to around $1.03 billion in 2011.

“Without question, print publishers are focusing on the digital transformation of their brands,” said Lisa Phillips, eMarketer senior analyst and author of the report "Newspapers and Magazines Online: Content Is Still King."

“While print products will not go away any more than radio disappeared when TV arrived, publishers must adapt to serving two audiences, one online and the other offline.”

Tags: ad budget, newspaper, online

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