Thursday, August 18, 2005
Search Dominates New Advertising Spending :: StepForth Search Engine Placement Inc. :: SEO Article
Search Dominates New Advertising Spending :: StepForth Search Engine Placement Inc. :: SEO Article: "Outsell’s report 'Financial Performance Scorecard, Full Year 2004', written by lead analyst Chuck Richard, concludes that Google and Yahoo are, “Clearly diverting advertising revenue from the established information companies, …literally sucking the financial air out of the room.” It also places the world’s newspaper of record, the New York Times on a crisis watch list labeled “Sinking Stones”, citing low revenue growth and challenges attracting new readers throughout the traditional news publishing industry.
This movement of money away from traditional advertising venues is starting to manifest in serious changes in the traditional media sector, prompting a new round of lay-offs, consolidation and acquisitions. As an example, over the past three months, the New York Times laid-off over 190 workers, most of which worked in advertising and sales for its smaller newspaper holdings in Boston and the US mid-west. At the same time, recognizing that much of the news that is fit to print will never see the stain of ink but will be found online, the NYT also purchased the search directory About.com."
This movement of money away from traditional advertising venues is starting to manifest in serious changes in the traditional media sector, prompting a new round of lay-offs, consolidation and acquisitions. As an example, over the past three months, the New York Times laid-off over 190 workers, most of which worked in advertising and sales for its smaller newspaper holdings in Boston and the US mid-west. At the same time, recognizing that much of the news that is fit to print will never see the stain of ink but will be found online, the NYT also purchased the search directory About.com."
