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If
you've been thinking
about developing
a geo or geo-targeted domain
name into you own local media
business, you might be wondering how
good you odds are in competing for online
advertising dollars against websites
operated by long established newspapers
or TV stations. |
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In
most markets the newspapers and TV
stations have developed pretty
impressive websites and they have the
advantage of a brand that is already
well-known, as well as traditional media
platforms they can use to promote their
websites.
Having
worked in local TV for almost 20 years
and knowing the power of the medium, I
would have guessed that the local
TV and newspaper websites would have an
edge in the battle for online market
share (even though both are seeing ad
dollars decline on their legacy
platforms as the audience continues to
move to the web). So I was a bit
surprised to see a report from |
New
Media Vs. Old Media image from
Bigstock |
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highly
regarded local media research firm Borrell
Associates this week that
showed that was not the case - in fact
it's not even close. |
As
noted in a post at Media
Daily News Tuesday, independent
local media operators won the lion's share
of the $16.4 billion spent on local
online advertising last year - a whopping 46.2%
share of the market. Sites operated by local
newspapers were a distant second with a 24.7%
share followed by directories at 12.6%,
then - in fourth place - local TV sites with 12%.
Radio sites were almost a non-factor with only 1.8%
of the market and radio's share actually fell
from the year before.
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Watching
Television
image from Bigstock |
The
TV sites on the other hand are growing
faster than any other segment,
so don't count them out just yet -
especially with the ever increasing
popularity of online video. Nine
years ago sites operated by local TV
stations had an almost invisible 0.4%
share of online ad revenues, so they've
come a long way to get their 12% and now
they are starting to kick into high
gear. In 2011 their revenues were up
41% from the year before and in 2012
Borrell predicts they will grow another 25%
to $2.7 billion. |
Still
the TV and newspaper sites are far behind
independent operators in market share. It may by
that the independents are more internet tech
savvy and are benefiting from first mover
advantage (though some newspaper and TV sites
went online early, most were given little
attention until the owner's traditional outlets
started seeing ad revenue evaporate). Whatever
it is, it should be re-assuring to
current and future locally oriented website
operators to know that, with relevant, high
quality content, they can more than hold they
own against their old world foes.
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