The Future of Newspapers
A review of Apple’s App Store in May 2011 found more than 200 iPad apps offering local U.S. news content. Fifty-seven percent of newspaper publishers surveyed by the Audit Bureau of Circulations said that they “have plans to develop an iPad app in the next six months.
So far, mobile devices have not proved to be a major source of revenue for news outlets, neither through advertising nor paid applications, but news organizations are still experimenting with different business models.
Conde Nast Taps Brakes on Churning Out iPad Editions | MediaWorks – Advertising Age
Conde Nast is tapping the brakes on its drive to deliver iPad editions of all its magazines, according to company employees, acknowledging that conditions aren’t quite right yet to deliver the ideal app editions at the kind of scale that advertisers want. If publishers want to introduce new iPad editions right now, Conde wants them to be sure they’re justified.
via Conde Nast Taps Brakes on Churning Out iPad Editions | MediaWorks – Advertising Age.
Print ad revenues declined 9.5%
According to the Newspaper Association of America, total print ad revenues declined 9.5% in the first quarter to $4.75 billion, marking the 19th consecutive quarter of declines for newspaper print ad revenues. That compares to an overall 4.4% increase in ad spending across all media, according to Kantar Media, to $32.5 billion — the fifth consecutive quarter to see a year-over-year increase on this broad-based measure.
via MediaPost Publications Gannett: Cuts 700 Positions, CEO, COO Pay Doubled 06/22/2011.
Local Ad Dollars 2010
FWIX is run by Darian Shirazi, a 23-year-old former software engineer, already experienced at Facebook and Ebay. Its main funder, BlueRun Ventures, has put $2.5 million into the company. The goal: tapping into the bonanza of local ad dollars to come, and doing it on the sweat of smarter and smarter filtering technology. That market: $15 billion in local online ad dollars in 2010, as forecast by Borrell Associates; $36.7 billion by 2014 according to Kelsey.
via Content Bridges.
Apple On Track To Sell 8 Million iPads This Quarter
Based on numbers shared during Apple’s WWDC keynote this morning, the company is on track to sell 8 million iPads this quarter.
Gene Munster of Piper Jaffray noticed that Apple said it had sold 25 million iPads to date. That’s a rate of about 87,000 per day, which amounts to almost 8 million for the quarter.
Munster previously expected quarterly sales around 7 million.
Last quarter, Apple only sold 4.69 million iPads. But that was because of supply constraints, not lack of demand.
MediaPost Publications Black, White and Red All Over: Newspaper Ads Dive 06/02/2011
The first quarter of 2011 brought no relief for the newspaper industry, which suffered another round of declines in print advertising revenues.
The first-quarter results from the Newspaper Association of America stand out against a general recovery in ad spending for other media, and suggest that newspaper print ad revenues are locked into a permanent, long-term decline.
Total print advertising revenues fell 9.5% from $5.25 billion in the first quarter of 2010 to $4.75 billion in the first quarter of 2011, according to the NAA — the lowest first-quarter revenue figure since 1983.
Those stats are down 55% from 2006, when total first-quarter print revenues came to $10.5 billion. This marks the 20th straight quarter of year-over-year print revenue declines.As in previous quarters, the losses were spread across all of the main advertising categories. National advertising fell 11% from $1.04 billion to $924 million; retail fell 9.5% from $2.95 billion to $2.67 billion; and classifieds fell 8.15% from $1.25 billion to $1.15 billion.
Within the classifieds category, automotive slipped 4.7% to $266.5 million and real estate tumbled 19.3% to $197.7 million. Only recruitment increased, ticking up 4.3% to $165.7 million. All other types of classifieds fell 8.5% to $520.8 million.
via MediaPost Publications Black, White and Red All Over: Newspaper Ads Dive 06/02/2011.
Time Inc. Reaches Deal With Apple – WSJ.com
Time Inc., the country’s largest magazine publisher, has reached a deal with Apple Inc. to make all its iPad editions free for print subscribers, marking a break in the impasse between publishers and Apple and lending support to Time’s contention that it’s business-as-usual after the ouster of its chief executive.
Starting Monday, subscribers to Sports Illustrated, Time and Fortune magazines will be able to access the iPad editions via the apps, which will be able to authenticate them as subscribers. Time Inc.’s People magazine already had such an arrangement, but readers of most publications have had to pay separately for the iPad version regardless of their subscriber status.
Apple Is Going To Own The Exploding Tablet Market For Years — Goldman
Goldman Sachs put out a 68 page report this morning on the growing tablet market.The long and short of it: Apple is going to dominate for the next two years.It could own as much as 71% of the market in 2012 if non-Apple tablets continue to flop.
Goldman also says the expansion of iPads, and tablets, is going to cause a serious disruption in the Microsoft-Intel monopoly. Expect tablets to significantly eat away at notebook sales in the coming years.
As Microsoft and Intel falter, ARM holdings, Google, Motorola, HTC, and of course, Apple, will rise.
via Apple Is Going To Own The Exploding Tablet Market For Years — Goldman.
IT’S OFFICIAL: Internet Advertising Is Bigger Than Newspaper Advertising
Some surveys and reports had projected it, and it was long time coming, but now it’s official: the IAB’s 2010 Internet Advertising report says in 2010 internet advertising was bigger than newspaper advertising. Most studies said it wouldn’t happen until later, but it did last year.And meanwhile, TV is still much, much bigger than the internet.
Here’s the chart:
via IT’S OFFICIAL: Internet Advertising Is Bigger Than Newspaper Advertising.
Newspaper Digital Dollars Race
In terms of charting the changing balance between newspaper and online ad spending, worldwide newspaper ad expenditures were still 51 percent larger than the web’s in 2010. However, newspaper dollars are shrinking by 1.4 percent a year, as circulations continue to fall in developed markets, and readers shift to the internet.
At the same time, internet advertising continues to grow at breakneck pace, at a forecast average rate of 14.4 percent annually between 2010 and 2013. Zenith is forecasting newspaper ad spend to fall from $95.2 billion in 2010 to $91.2 billion in 2013, while internet ad expenditure rises from $63 billion to $94.5 billion over the same period.
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As a result, Zenith is calling for global display ad spending to grow at an average of 16.4 percent a year to 2013, while paid search rises by 12.8 percent and classified by 10.2 percent.
via Zenith: Global Forecast Revised Down; But Display Remains ‘Invigorated’ | paidContent.
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