Kelly Scott Madison

Is Engagement The New Metric for News-Media Advertising?

05/25/2015

 

The news industry has served as a major indicator of the direction for online and offline formats over the last 10 years.

The news industry has served as a major indicator of the direction for online and offline formats over the last 10 years. No other industry was hit as hard and as quickly by digital innovation as the news media.When stories became widely available in online formats and newspapers began their rapid circulation declines, the industry was forced to innovate and find ways to capture high-value audiences in a measurable and lucrative manner. As a result, they were the first media entities to experiment with large-scale paywalls in an effort to monetize their digital business, and they recognized almost immediately that consumers’ love of all things video could be applied to major news websites to increase traffic.

While TV news advertising dollars have not been hit as hard as those of newsprint, Pew Research estimates that total revenue from news media has declined by one third since 2006. Newspaper print advertising revenue has fallen 52 percent since 2003, taking a huge toll on the profitabilityof news organizations. In spite of these numbers, newspaper advertising still remains the majority contributor to overall news industry revenues. This is a dangerous and untenable position for the news category as the future does not look positive for newsprint’s viability.

As online video viewing has increased across all consumer categories, news video has seen an uptick in overall streams. Approximately 36 percent of all U.S. adults have...


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