The newspaper industry has been witnessing its profit margins continue to drop over the past few years. They previously supported themselves through the old model of traditional delivery, on-street display and classified print advertisements, but as the digital landscape continues to grow, newspapers are quickly falling behind — with more than half of the industry’s ad revenue decreasing over the past few years. Check out this graphic to see what they’re doing to stop this loss of revenue, and take a look at their gradual move towards new profit models.
As the digital landscape continues to grow, newspapers need to move towards new profit models if they’re going to be successful. More than a decade after most newspapers first launched websites, digital ads continue to become a larger share of overall newspaper revenue (while print continues to see a loss). In many cases, 50 percent of digital advertising revenue is now coming from display or banner ads.
Targeted ads are expected to blow up as well. Executives at more than 90 percent of U.S. newspapers believe ads targeted based on an individual users demographic or online activity are poised to become the largest share of digital ad revenue over the next year. Other models that newspapers are looking at are: fresh ad formats like daily deals and mobile advertising.
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