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“Between 2011 and 2015, revenue from digital advertising in the United States is expected to grow by 40% and to overtake all other platforms by 2016.
“Yet how much of that growth will go to underwrite news remains in doubt and throws into question the financial future of journalism as audience continue to migrate online. What will happen pivots in part on whether the news industry can move into the more lucrative areas of digital advertising, particularly using consumer data to target ads, persuading major legacy advertisers to also advertise online and moving into new advertising areas.”
Is this happening? As the news industry moves its chips to the Internet are its most important advertisers coming along for the ride? Is it reaping huge dividends by targeting ads to consumers, as new media like Google do?
The Pew Research Center doesn’t see many signs of it. “Currently,” says a study released Monday by Pew’s Project for Excellence in Journalism, “even the top websites in the country have had little success getting advertisers from traditional platforms to move online. The digital advertising they do get appears to be standard ads that are available across many websites. And with only a handful of exceptions, the ads on news sites tend not to be targeted based on the interests of users, the strategy that many experts consider key to the future of digital revenue.”
Pew reports that it studied 22 news operations and only three “showed significant levels of targeting.” A second look six months later showed that three more had moved very modestly toward targeting, “from virtually no targeting to a limited amount on inside pages.
“By contrast, highly targeted advertising is already a key component of the business model of operations such as Google and Facebook.”
Maybe the MSM should run banners across the tops of their websites: YOUR PRIVACY RESPECTED HERE.
Just a thought. Click here to read the entire report, “Digital Advertising and News.”