Ghost of Midnight

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Newspaper Ad Revenue Insights

Posted on Sunday, September 30, 2007 by No comments yet

Jennifer Saba writes in Editor & Publisher on September 27, 2007 about a a Bank of America report by Joe Arns…

[O]nline ad revenue per reader is now roughly one-third to one-half of that generated by print readers — a marked improvement from just a year ago.

Based on the total ad revenue per reader, in Q2 Bank of America estimates that on average, newspaper publishers generated about $25 to $38 of ad revenue per daily online reader compared with $70 for each print daily reader. This suggests that online readers are worth about 36% to 55% of the value of print readers, up from 28% to 42% in Q2 2006.

“In our view, the gain in online revenue per reader is remarkable given the severe cyclical headwinds that have had a disproportionate effect upon classified advertising — which makes up nearly 80% of the online newspaper ad revenue pie,” wrote Arns.

Driving the online monetization: the shift of classified ad spending from print to online and the surge in local retailers turning to online advertising.

Posted in: Local Online, Newspapers

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