Newspapers Ahead of TV Stations in Online Ad Earnings
Emarketer reports that, in a survey of 711 daily newspapers and TV stations in the US about their Internet-related advertising expense, by Borrell Associates, newspapers are successful at maintaining profitable Web sites, but TV stations still have not fully captured Internet ad spending. Traditional classified advertising done online is credited for a great deal of the revenues generated, noting that newspapers built themselves on this sector (classified advertising still comprises 60% of newspapers' revenues, down from 73% in 2002). TV stations are only just moving into the classified space.
58% of the newspaper and TV station sites surveyed report online profitability for 2003, and the percentage was even higher for newspapers only, as 83% were in the black with high online profit margins. Borrell finds that the average newspaper Web site produced revenues of $17.70 per unit of print circulation. The smallest newspapers earned about $3.64 per unit, or $36,400 for papers with a circulation of 10,000, while the largest newspapers saw revenues of $27.10 per unit, meaning a newspaper with a circulation of 200,000 brought in $5.42 million from its Web site in 2003.
Newspaper Web Sites Average Online Revenues per Unit of Print Circulation, 2003 Circulation
| Grouping | Online Revenue ($) |
| 2,000-10,000 | $3.64 |
| 10-20m | 6.81 |
| 20-50m | 9.40 |
| 50-75m | 11.91 |
| 75-100m | 13.40 |
| 100-200m | 15.84 |
| >200m | 27.10 |
Source: Borrell Associates, May 2004
TV stations do not earn the kind of money newspapers have from online advertising. The average TV market earned $0.28 per local TV household, which translates into about $140,000 worth of revenue for a market of about 500,000 TV households, such as Tulsa, Oklahoma.
Stations in smaller markets earned more per TV household viewer than in larger markets, $0.63 to $0.16 per TV household, respectively. Larger markets such as New York, Los Angeles and other major metropolitan areas, have significantly more viewers, so their revenues greatly exceeded those of smaller markets.
Average Online Revenues to TV Stations, 2003 Market Rank
| Revenue ($) | ||
| Markets | 1-20 | $997,078 |
| Markets | 21-50 | 400, 261 |
| Markets | 51-100 | 182,481 |
| Markets | 101-200 | 146,968 |
Borrell Associates Inc., May 2004
You can find out more here at eMarketer.
JACK LOECHNER
Center for Media Research
Recent Research Brief Articles
-
Shopping Sight Unseen May 24, 6:15 a.m.
According to Shopzilla, from a monthly e-commerce research initiative to track key shopping trends, 29% of ...
-
Black And White And Read All Over May 23, 6:15 a.m.
The vast majority of U.S. adults read newspaper media content across a range of technology platforms, ...
-
Innovate Or Die May 22, 6:15 a.m.
Innovation is not working out the way many companies expected. Rather than offering “the next big thing,” innovations ...
-
One For The Money, Two For The... May 21, 6:15 a.m.
According to a new survey by PunchTab, 81% of moms will engage more with a brand ...
-
SMBs Bullish(er) For 2013 May 20, 6:15 a.m.
According to the recent Business Confidence Survey by Insperity, small business owners are showing a willingness ...
-
Optimize Format For Effective Multi-Media Viewing May 17, 6:15 a.m.
According to a new report from Brand Perfect, considering global publishing for a digital generation, sales ...
-
High Entertainment Spenders Account For 70% Of Home Entertainment May 16, 6:15 a.m.
According to Nielsen’s U.S. Entertainment Consumer Report, consumers in households earning an average annual income of ...
-
Travel Pumps The U.S. Economy May 15, 6:15 a.m.
According to a recent report from Roger Dow, President of the U.S. Travel Association, on how ...
-
Smartphones and Tablets, Though Mobile, Require Separate Ad Approach May 14, 6:15 a.m.
According to an industry analysis by Adobe Digital Index, mobile devices have changed the way consumers ...
-
U.S. Still Largest Digital Out-of-Home Market; China Chases May 13, 6:14 a.m.
According to a new report from PQ Media, the Global Digital Out-of-Home Media Forecast 2013-17, global ...
Be the first to comment on "Newspapers Ahead of TV Stations in Online Ad Earnings"
Leave a Comment