Posts Tagged ‘Borrell Associates’

Targeted ads to pace 2011 growth online

Wednesday, August 25th, 2010

Online ad spending should grow by 14 percent next year, with targeted display ads, social media and video streaming leading the way, says a new projection by Borrell Associates.

Total online spending should amount to $51.9 billion next year, according to Editor & Publisher’s reading of the study.

“The big driver will be targeted display (such as banner ads) advertising, which we expect to grow almost 60 percent in 2011, reaching $10.9 billion for national and local combined,” the memo says. Streaming video, now in reach of even the smallest advertisers, should also grow by 60 percent.

Run-of-site display advertising, which Borrell says is less productive, is expected to decline 14 percent next year to $8.2 billion in local and national spending. National paid search ads will also fall by double digits in 2011, the firm says.

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.”


Newspapers get small share of political ads

Monday, February 8th, 2010

Newspapers can expect to see less than 8 percent of the $4.2 billion to be spent on political advertising in 2010, a new report from Borrell Associates says. That share comes out to $329 million.

Most will go to broadcast TV with 61 percent, or $2.6 billion, Editor & Publisher’s reading of the report says, followed by cable TV at a very distant second with a 9.1 percent share. Only 1 percent, or $45 million, of political dollars is expected to be spent on Internet ads — 73 percent more than in 2008.

Last year was relatively quiet on the political front, yet spending outpaced 2000 levels,” E&P says. “The recent Supreme Court ruling that allows corporations to now spend on politics caused Borrell analysts to bump up its forecast 10 percent.”

The Fitz & Jen blog charts the numbers for each medium.

Analyst sees newspaper real estate ads growing

Friday, January 15th, 2010

Spending on real estate ads in newspapers is projected to rise 16 percent in 2010 after falling a staggering 34 percent last year, says a new report from local ad analyst Borrell Associates.

PaidContent.org explains: “In looking over the real estate landscape, Borrell notes that almost a quarter of homeowners owe more than their house is worth and one in seven mortgages is delinquent. On the commercial side, office vacancy rates are rising by 11 percent while rents are declining 12 percent, and fewer than 10 percent of troubled commercial loans are being resolved. That will continue to place pressure on the category’s ad spending for the next few years.

“Focusing on this year, media segments that have generally been perceived as weak — newspapers and broadcasting — are set to do better. Conversely, those that have been otherwise least affected by the economic downturn — cable and online — are poised to do worse.”

Online ads will pull in less because real estate advertisers are dropping display ads for paid search, which is less expensive. This “portends more tough times for newspaper Web site classifieds’ attempts to capture a larger portion of those online ad dollars,” the report says.