Online Ad Spending To Surpass Print
One of the standard arguments for government subsidies of tomorrow’s media is that as the news moves online, advertising is not following so journalism will need new sources of funding. But the research company Outsell this week predicted that digital marketing will outpace print ads for the first time in 2010.
Here are the predictions for this year:
- Online ads: $119.6 billion, 33 percent of the total and up 9.6 percent from last year.
- Print ads: $111.5 billion, 30 percent of the total and down 3 percent.
- Total ads: $367.9 billion, a 1.2 percent jump of $363.5 billion.
The divide last year favored print by 32 percent to 30 percent. With the investment in digital marketing increasing significantly during a recession and overall ad dollars increasing only slightly, it is obvious that online ads are the future.
Traditional media companies arguably are being hurt by the transition, but that’s because they chose not to adapt as the marketplace changed. Smart media firms will learn how to adjust their business models so they can get the increasing share of the online ad pie they need to help fund their journalism. They won’t need handouts from the government.
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