Diane Mermigas writes:
... Broadcasters must better position themselves strategically to secure their share of online ad dollars and consumers from such unlikely competitors as Craigslist to Google. Online will represent 10% of local television advertising dollars by 2010–or twice what it is today, according to Gordon Borrell, CEO of Borrell Associates, a media research and consulting firm. In 2007, online sales are expected to be as much as 10.7% of gross revenues at the Washington Post Co.’s newspapers, 6% of gross revenues from combined newspaper and television efforts at Gannett, and only 2.4% of gross revenues at Hearst-Argyle television, Borrell reports. Of the $7.5 billion in overall annual domestic local online ad spending, newspapers grab 36%–while TV stations only garner 7.7%, Borrell reports. Clearly, local television is losing online ad dollars to pure-play Internet players such as Google and Yahoo, which collectively siphon 33.2% of total U.S. local online advertising. ...
Link: MediaPost. --Dennis
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