Analysis to the press industry

Date: August 3, 2013 Published by

Presently, Internet users tend to consume news through the online version of the newspapers rather than the print version. The following graphic shows where people get their news.

Source : Berkeley EDU

Internet is becoming the most popular way to consume news. It is a big problem for online newspapers because the online advertising revenue is remarkably less than print advertising. It is due to Internet users largely ignore the content of online ads. There is a ratio called click-thorugh-rate (CTR) that measures the performance of the ads. The average CTR is 0.1%. It means that for every 1000 ad impression or visualizations on websites, only 1 person clicks on the ad. A woman is more likely to give birth twins than click on an ad . (Hubspot, 2013)

The fact of people ignoring the digital ad has a deep impact on the revenue of the newspapers as shown in the following graph:

Source: The Atlantic

Therefore the press industry is shrinking and the digital revenue does not seem to take off. The reason is, Internet users largely ignore the online ads. As seen in the first figure, Internet users tend to read articles via Internet and the percentage is growing rapidly, thus the press industry is not dying, it’s shrinking and at some point it will level off. Even it can grow by using new effective advertising solutions such as: Adlegant

Online newspapers are trying to look for new sources of revenue such as paywalls. It is basically a subscription model; Internet users have to pay in a monthly basis to read articles. 50% of the largest U.S newspapers use paywalls and more online newspapers are tending to do it. The following figure shows some of the U.S newspapers that are using paywalls:

Finally, Adlegant has created a new way to either monetize websites and promote articles.  Adlegant is an online marketing platform that helps online newspapers, news agencies, corporate blogs, etc to promote their articles and increase their audience. It also helps online publisher to monetize their sites by using article advertising. More info about Adlegant.