Archive for January 22nd, 2010

Older readers moving to social media

Friday, January 22nd, 2010

Newspapers’ reliance on older readers may be yet another false assumption. A study by IBM’s Media and Entertainment group says older readers are moving to social media for news and information, just like younger adults and teens.

Readership of newspapers online fell by 10 percent in 2009, according to IBM’s white paper, with the greatest loss in the 18-24 age range, says Dorian Benkoil at Poynter’s E-Media Tidbits blog.  Use of digital media increased overall, led by older consumers, who accounted for the largest percentage increases in the use of social media.

“The implications are important for those in the news business, and illustrate that newspapers may have less time than they were counting on to figure out how to succeed online,” Benkoil writes.

Karen Feldman, global lead for the media and entertainment group and one of the survey’s lead authors, told Benkoil that “The only digital media category where I saw erosion year over year was online newspapers,” from roughly 64 percent in 2008 who said they had viewed a newspaper online, to 54 percent in 2009.

The study found that “the only group in which there was significant growth” in online newspaper readership “was people older than 55.”

But, if the rest of the study’s findings depict the evolution of consumers’ use of online resources, even the oldest readers are temporary customers on their way to social media.

Projection: 2010 looks strong for online ads

Friday, January 22nd, 2010

Online ad spending will have “a relatively strong year” while spending on traditional media will remain flat, says the Magna unit of the Interpublic Group.

The advertising and marketing services provider’s projections call for a 12.2 percent jump in direct online ad spending, 4 percent growth in national online ads and a 3.7 percent increase in local online ad spending, according to MinOnline.

U.S. advertising revenues will be flat this year, down just 0.1 percent from 2009, but when spending for the Olympics and elections are counted in,  the years sees a 1.4 percent rise in ad spending overall, the report says.

However, Magna’s projections were made before Thursday’s decision by the U.S. Supreme Court that removes restrictions on political ad spending by corporations (see below). The decision is described widely as opening the floodgates for spending.