Monday, February 25th, 2008
by Greg Gackle, Principal
© GAH, Inc.
A small technology advance in our household - a wireless network - has me once again rethinking why I subscribe to the local newspaper. More mornings than not lately, I’ve read the latest local (and not so local) news on my son’s laptop at the kitchen table before the paper hit the front door.
And, as I watch our newspaper delivery guy brave the snow and subzero temperatures to drop off the morning paper, I can’t help question the enormous energy and expense newspapers expend each day of the year for a service (news and information) I can access with the click of my finger.
Lee’s Wisconsin paper first to ditch print edition
The Capital Times of Madison, Wis. – partially owned by Quad City Times parent Lee Enterprises – has the dubious distinction as the first daily newspaper to end its print version in favor of an Internet-only edition. The 17,000-circulation afternoon paper will continue to publish two free print editions each week in addition to maintaining its online news site. The move will result in a reduction of 60 positions at the Capital Times.
The shift was made easier by the fact Lee and the other Capital Times partner also own the much larger morning newspaper in Madison, The Wisconsin State Journal. The twice-a-week print edition of the Capital Times will be distributed as an insert in the Wisconsin State Journal.
Online ad spending surge continues despite economic woes
Ad spending in the fourth quarter of 2007 was up 28 percent from the same period in 2006 despite the slowing U.S. economy. Fourth quarter online ad spending totaled $7.3 billion, according to IDC. For calendar 2007, online ad spending totaled $25.5 billion, up 27 percent from the previous 12-month period.
Not surprisingly, Google received the lion’s share of those online revenues, nearly 24 percent, according to IDC, followed by Yahoo at 11 percent, Microsoft at 5.6 percent and Fox Interactive Media at 3 percent.
Newspaper group forms online ad network seeking greater share of Internet ad spending
Major newspaper chains Tribune Co., Gannett, Hearst and the New York Times recently launched a new online ad network – QuadrantOne – in an effort to garner a greater share of online advertising revenues. Advertisers will have access to 27 major markets and 50 million people a month through the QuadrantOne network.
The new network is notable for the absence of any partnership with the leading online players – Google, Microsoft or Yahoo. Last year, Lee Enterprises and 12 other newspaper chains entered into a partnership with Yahoo which gave Lee access to Yahoo’s ad-serving technology for managing and targeting online ads. The move was seen as a way to help the newspaper partners attract more national advertisers to their online newspaper sites. In return, Yahoo received access to the newspaper partners’ news content.
