News is quickly moving to the Internet; Will broadcasters adapt in time?
Jul 27, 2009 12:27 PM, By Michael Grotticelli
Finding a sustainable online financial model for Internet media is the industry’s Holy Grail. Yet, with no hard blueprint for Web news growth, most outlets see a need to expand their existing branded content online while creating something totally new. The “new” part is still elusive.
One hard economic fact: Internet advertising is growing while television is declining. Internet revenue will grow 10.1 percent in 2009, according to a report issued in July by ZenithOptimedia, the media services company. By comparison, television ad spending is estimated to drop 7.1 percent.
One of the reasons advertisers like the Internet is the preroll commercial. Video is one of the few formats online where the broadcaster can guarantee an advertiser that eyes have actually watched an ad. That has proven highly effective in selling Internet media.
The chaos of the moment provides the opportunity for broadcasters to move beyond their on-air TV signals to a new distribution medium that both expands their audience and gives the potential for higher ad revenues when the economy bounces back. It’s a huge new opportunity for growth.
When larger audiences get their news online, the advantage of the 24/7 cable networks decline. There’s the opportunity for savvy broadcasters who chose to expand online to take back much of their lost audience.
But, in these difficult economic times, taking advantage of the opportunity is much easier said than done.
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