Advertising Growth: Online Trumps Print

Posted on 8/9/2007 by Jim Pickerell | Printable Version | Comments (0)

Four years from now, more money will be spent in the U.S. on online ads than newspapers ads. This is bad news for image producers because the average price paid for a picture used in an online ad is much lower than the price for print use. It also seems likely that many micropayment photos will be satisfactory for Internet and mobile use, further depressing prices.

Veronis Suhler Stevenson has released its annual study of industry spending. It predicts that by 2011, $62 billion annually will be spent in the U.S. to advertise online. Only $60 billion will be spent to advertise in newspapers. Since 1985, newspaper circulation has dropped 30%. Fewer readers mean lower ad rates and less ads.

Internet ad spend is expected to grow 21% a year through 2011, while the annual spending increase to advertise in newspapers will be in the low single digits. The VSS forecast has had a +/-2% margin of error for none of the last 10 years.

Sp how long it will be before digital advertising overtakes TV, (broadcast, cable, satellite), which is forecast to be around $86 billion in 2011?

TV advertising is growing at a somewhat better rate than newspapers, but nowhere near the rate of online growth. There is no indication that the Net advertising growth curve will taper off.

James Rutherford, VSS executive vice president and managing director, said, "The path of online advertising and newspaper advertising is a continuation of what we've been observing for many years, but it is finally getting to the point where the lines will cross."

In the next five years, consumers and businesses are expected to utilize more digital media alternatives. There will be a strengthening of the new media pull model of advertising at the expense of the traditional media push model. Consumers are also migrating away from advertising-supported media, such as broadcast TV and newspapers, to consumer-supported platforms, such as cable TV and videogames.

Time spent with consumer-supported media grew at a compound annual growth rate of 19.8% from 2001 to 2006, while time spend with ad-supported media declined 6.3% in the period.


Copyright © 2007 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-251-0720, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  

Comments

Be the first to comment below.

Post Comment

You must log in to post comments.

Stay Connected

Sign up to receive our FREE weekly email listing new stories posted.

Follow Us

Free Stuff

Future Of Stock Photography
If you’re a photographer that counts on the licensing of stock images to provide a portion of your annual income the following are a few stories you should read. In the past decade stock photography ...
Read More
Blockchain Stories
The opening session at this year’s CEPIC Congress in Berlin on May 30, 2018 is entitled “Can Blockchain be applied to the Photo Industry?” For those who would like to know more about the existing blo...
Read More
2017 Stories Worth Reviewing
The following are links to some 2017 and early 2018 stories that might be worth reviewing as we move into the new year.
Read More
Stories Related To Stock Photo Pricing
The following are links to stories that deal with stock photo pricing trends. Probably the biggest problem the industry has faced in recent years has been the steady decline in prices for the use of ...
Read More
Stock Photo Prices: The Future
This story is FREE. Feel free to pass it along to anyone interested in licensing their work as stock photography. On October 23rd at the DMLA 2017 Conference in New York there will be a panel discuss...
Read More
Important Stock Photo Industry Issues
Here are links to recent stories that deal with three major issues for the stock photo industry – Revenue Growth Potential, Setting Bottom Line On Pricing and Future Production Sources.
Read More
Recent Stories – Summer 2016
If you’ve been shooting all summer and haven’t had time to keep up with your reading here are links to a few stories you might want to check out as we move into the fall. To begin, be sure to complet...
Read More
Corbis Acquisition by VCG/Getty Images
This story provides links to several stories that relate to the Visual China Group (VCG) acquisition of Corbis and the role Getty Images has been assigned in the transfer of Corbis assets to the Gett...
Read More
Finding The Right Image
Many think search will be solved with better Metadata. While metadata is important, there are limits to how far it can take the customer toward finding the right piece of content. This story provides...
Read More
Where Is The Stock Photo Industry Headed?
For new readers, or those who may have missed some of what I have written over the last few months, the following are a list of stories worth looking at to get a sense of where the industry is headed.
Read More

More from Free Stuff