Daily Management Review

Print ads are going out of fashion


10/24/2016


Advertisers are cutting advertising expenses in the print media. This year, the rate may drop to 8.7%, up to $ 52.6 billion. This is a record number since the fall of the crisis of 2008 to 2009.



Khantipol via flickr
Khantipol via flickr
Expenditure on advertising in the print media on the basis of 2016 will decline by 8.7% throughout the world to $ 52.6 billion, writes The Wall Street Journal referring to forecast of GroupM company, which is part of WPP. It will be the largest decline since the financial crisis of 2008- 2009 years, when the figure fell by 13.7% in 2009.

In general, the advertising market this year is expected to grow by 4%, up to $ 529.1 billion; at that, the Internet advertising market will grow by 14%, predicts GroupM.

Publishers are cutting costs as the market is falling. In particular, Publisher of The New York Times and Wall Street Journal, News Corp company, is likely to continue to reduce staff. British The Guardian and the Daily Mail has recently reduced number of jobs in their offices, the WSJ notes. The changes have also touched the WSJ. Last week, the edition announced its plans for reorganization of the business. The stated goal is to reduce costs and accelerate "digital transformation" of the newspaper.

In September, publisher of Daily Mail, Daily Mail & General Trust company, reported a layoff of more than 400 employees due to fall in advertising revenue. Guardian Media Group, publisher of The Guardian and The Observer, has already dismissed about 250 employees this year. 

"Newsmakers found themselves in a difficult situation. The drop (in advertising revenue) has intensified during the last 12 months ", - said Financial Director of Daily Mail & General Trust, Stephen Daintith.

In recent years, advertisers who work in retail, financial services and telecommunications have been actively advertising in videos on the Internet while reducing marketing costs in the print media.

"This year, drop in revenue from print advertising has accelerated. This is largely due to transition to digital and mobile space, as well as increasing popularity of such major advertising platforms like Facebook and Google", - says CEO of Financial Times John Ridding.

As earlier reported by Bloomberg, video has become a central element of Facebook's development strategy. Audience of the sector counts more than 1.7 billion users. The company is rapidly gaining ground in the mobile advertising market due to high demand for advertising in video content.

In July, Facebook CEO Mark Zuckerberg said he wants to shift the company's focus on video content, and in a few years that the news feed is likely to consist mainly of the video. 

source: wsj.com






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