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buyer. I've been writing
about the decimation of traditional media (and the rise
of online media) for some time now and we are finally
reaching the endgame where many outlets realize
all of the cutbacks they have made are not enough to save
the ship so they are throwing in the towel. The
newspapers aren't the only ones on a sinking ship
either. The storm is descending on radio, TV, direct
mail, print yellow pages and magazines too. A new
report from BIA and the Kelsey
Group predicts that as a group, local advertising
dollars spent in those traditional forms of media
will decline another 20% over the next five
years, from $141 billion in 2008 to $112
billion in 2013. I
personally think the decline will be much more severe
than that as the rise of the Internet accelerates
and Kelsey admits that could be the case. "The
share shift we expect could actually be more
pronounced if the major traditional media are not
able to integrate new interactive products into
their bundle," said Neal Polachek, CEO of
The Kelsey Group (that was recently acquired by BIA). At
the same time the traditional sector is plunging, the
report predicts that local ad spending online will soar 129%
in the same time frame from $14 billion to
$32.1 billion. That is a compound annual growth rate
of 18%. These numbers again confirm that domain
owners are sitting in the right place at the right
time. |
