The Smart Money is with the Internet and New Media

NYTimes.com reported recently that newspaper ad revenue could fall as much as 30% this year.  The primary reason: continuing declines in ad revenue (declines that started well before our country’s recent economic crisis).  More evidence is found in this article from The Washington Post, where they report a 60% decline in Gannett Company’s first quarter profits.  This certainly is not good news to an already struggling medium.  But, as in most cases, what is bad for one entity is usually good for others.  There’s an interesting chart from The Business Insider showing online advertising as the fastest growing ad medium in history.

Does this mean traditional media is dead?  No, but in some instances it appears to be rapidly approaching life support.  Successful traditional media owners have embraced the internet and have discovered the value rich media provides.  They have made intelligent decisions by expanding their online offerings to grow their business.

At the end of the day, it’s the consumer who wins.  Didn’t get the chance to read the morning paper?  No problem, just go to the publisher’s website.  Missed the latest episode of 24?  Worry not because you can watch Jack Bauer’s latest adventures on Fox.com.

Overall, this news is nothing new. It is an affirmation.  Advertising dollars are shifting because consumers are shifting.  The internet IS the go-to destination for consumer goods, for business, for information, for entertainment, for news and for media consumption.  This is not a trend, a fad or “just the next big thing.”  As broadband and mobile access increase, more and more ad dollars will make the shift.