Archive for February 10th, 2010

McClatchy’s Pruitt: online ad model working

Wednesday, February 10th, 2010

McClatchy CEO Gary Pruitt said Tuesday that deriving online revenue from advertising is working just fine and there’s no reason to move toward paywalls, according to Editor & Publisher’s account of the speech.

Pruitt gave the keynote address at the Borrell Associates Local Online Advertising Conference in New York City.

Pruitt is also OK with aggregators like Google and Yahoo, because they send plenty of traffic — 20 percent, he said — to McClatchy newspapers’ sites.

In fact, McClatchy credits its success in building online revenue to its alignments with several different Internet players including Yahoo, Cars.com and CareerBuilder,” E&P says. “Pruitt told the Borrell conference that online revenue in 2009 accounted for 16 percent of total revenue — up from 11 percent in 2008.”

“We are very comfortable with free content supported by advertising,” Pruitt said. “We don’t view it as fatally flawed. That said, if we could make ad revenue with paid products we would.”


More commercials likely for online TV

Wednesday, February 10th, 2010

A move by Nielsen, the television ratings giant, could result in online presentations of TV programs carrying just as many commercials as broadcast does, according to Advertising Age.

Nielsen’s new methodology to compile data that take into account viewing of commercials that run in a particular show, online or off, could be in place by September so it can be used for ad sales in February 2011.  “If this system were adopted en masse — and it’s not clear that it would be — online viewing might be crammed just as full of commercials as the more traditional TV-watching experience,” Ad Age says.

And, while online sites like Hulu and Disney’s ABC.com typically have few ads, “many TV executives say these methods don’t bring much, if any, profit — and therefore cannot continue.”