Borrell & Associates released the results from their recent study called ‘What Local Media Sites Earn’ and for the first time ever in this six time report, newspaper online local ads topped more than $2 billion in revenue during 2007. Overall, newspapers held a 24.6% share of the total local online ad market. Many other forms of media, according to the Borrell report, paled in comparison to newspapers:
- Directories held a share of 7.8%
- Broadcast TV had a 6.9% share of the overall ad spend
- Local radio had a 0.8% share overall
- The majority share of local ad dollars (57.3%) were allotted to pure-play Web sites
“One company in our survey, with $400 million in total revenues, was generating $11 million in online ad sales on $3.8 million in expenses, for a profit margin of 65,%” says the report.
If there is one area of the Borrell report that should stand out for publishers looking to improve their online revenue and share, it is the profile of the top performing newspaper sites. According to Borrell and Associates, the top performing sites tend to have three things in common; they are less dependent on classified vertical categories; they have larger dedicated online sales forces; and they host multiple Web sites.
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