New Report.. 'What Local Media Web Sites Earn: 2008 Survey'
Research and Markets (http://www.researchandmarkets.com/research/9a696e/what_local_media_w)
has announced the addition of Borrell Associates Inc.'s new report "What
Local Media Web Sites Earn: 2008 Survey" to their offering.
Local media Web sites are sharing in the $13.1b local online ad revenue
pie this year, but Internet pure-plays continue to gobble up the most.
While newspaper sites have gone on the attack, we see some dramatic
share grabs from other media online.
This sixth annual benchmarking report is full of local media Web site ad
data from over 3,100 sites owned by newspapers, radio stations, TV
stations and independents. Our survey requested information regarding:
Revenue attributed to employment, automotive and real estate sales
Revenue attributed to streaming audio
Revenue attributed to streaming video
Percentage of revenue driven by “up-sold”
print or broadcast advertising
Percentage of revenue derived from banners and pop-ups
Number of dedicated (online-only) salespeople
2008 budget projections for all of the above
Local Web site managers will benefit from the timely benchmarking data.
Also included are 2008 projections for online ad spending.
Local Web sites continue to ride a wave that defies even the most
optimistic forecasts. Local online revenues are growing at a phenomenal
rate of 50 percent this year – even more
astonishing considering that retail sales have suffered such a sharp
drop. We expect local online advertising to reach $13.1 billion in 2008,
up slightly from our initial forecast last December.
Part of the growth is being driven by traditional local media companies
selling advertising on their own sites. Most of it, however, comes from
pure-play companies delivering lower cost advertising that intercepts
consumers not as they are reading news online, but as they are using the
Web to research products and prices. The recession is an economic prod
that is motivating advertisers to abandon their long-time spending
patterns and seek out more economical methods of reaching potential
Amid the relentless growth, a transformation is taking place. A few
years ago, it was easy to tell who owned which local Web site. Radio
station sites looked like they belonged to radio stations. Yellow Pages
sites had the walking fingers logo. TV sites carried the station’s
call letters and the anchors’ pictures at the
top. Newspaper sites pushed local news and classifieds under their
traditional mastheads. Now it is getting tougher to tell, and it is
becoming less relevant by the year to compare Web sites against each
other according to the core product their parent company owns.
After compiling this year’s survey, two
headlines screamed out: The most financially successful local Web
operations are venturing into page designs and product lines that have
little to do with the medium that gave birth to them. Like their “new
media” predecessors in radio in the 1920s and
television in the 1950s, they are creating unique identities and
breaking away from their print and broadcast roots.
Suddenly everyone seems focused on using the Internet to attack the
Yellow Pages. Interactive directories have popped up everywhere, and
legions of sales people are selling local business directories and
search-advertising packages in competition with the print directories.
Unfortunately for them, Yellow Pages publishers have already staked out
the turf and have been the most successful of all media companies at
developing their interactive revenues and protecting their core customer
What’s in store for these local Web operations
in the coming years? A slowdown is inevitable. Over the past four years
we have seen local online ad sales reach a Compound Annual Growth Rate
of 48 percent; over the next four we’re
expecting it to be 15 percent. We are forecasting another 18 months of
strong double-digit growth for local online ad sales, which will settle
to single-digit or “market norm”
levels by 2012. By then we expect the “winners”
in local online advertising to have grown to the size of the second- or
third largest media outlets in their markets in terms of total revenues.
Newspaper sites, with a formidable lead on everyone else, have the
biggest head start.
Key Chapters Covered:
CHAPTER 1 - YELLOW PAGES STEP INTO THE SPOTLIGHT
CHAPTER 2 - NEWSPAPERS GO ON THE ATTACK
CHAPTER 3 - TV STATIONS FEEL THE HEAT
CHAPTER 4 - RADIO WEB REVENUES GROWING FAST
CHAPTER 5 - CANADIAN WEB SITES
Appendix A Survey Methodology & Questionnaire
Appendix B Local Online Spending Estimates by DMA for 2008
(Including market-by-market estimates for Local Online Ads, Local
Paid Search, Local Online Video Advertising and Local E-mail
Appendix C Our Methodology for Ad Spending Data
For more information visit http://www.researchandmarkets.com/research/9a696e/what_local_media_w