Month: November 2012

Bleak Future for E-Media Companies?

Today e-news companies are facing greater challenges to generate revenue compared to the years prior to the digital boom.  Consumers attitude towards media has shifted.  Prior to the digital boom consumers expected to pay for their media they consumed.  Today however, consumers look to the web to consume their media and there, they expect it to be free.  For this reason, the media companies face a problem in having to figure out a way to generate revenue so they can stay afloat.  

To keep their bottom line right side up, E-media companies now have to feature a plethora of advertisements on their websites.  A great example to demonstrate this shift is a chart from Mashable today, Google Ad Revenue is Now more than ALL U.S. Print Publications Combined.  E-media companies can only hope that these advertisements will offer assistance to continue on into the future.  For this reason, I believe advertisers have had to integrate the cookie to offer targeted advertisements to the consumer as they have a higher CTR (thus have a higher value). 

However, despite new technological advancements and E-media companies integrating new digital initiatives into their business plans – it seems as though the revenue generated from ads is not increasing over time.  “In 2011, online advertising was up $207 million industry-wide compared to 2012.  Print advertising, though, was down $2.1 billion.  So the print losses were greater than the digital gains by 10 to 1.” – State of the Media  Essentially demonstrating that E-media companies are no longer able to make the same amount of revenue from advertisements.  Now, pair that fact with consumers expectation to consume free content and the future for e-media companies certainly looks bleak.