Traditional media companies will continue to face challenges selling ad space in print publications in 2011. As a result, many of these businesses are looking to boost their sources of online ad and circulation revenue. Writing for Adweek, Lucia Moses also notes that businesses in this sector may hone their expertise with apps and market other products to grow non-traditional revenue.
By 2013, traditional media formats may see their portion of the ad market shrink significantly. Newspapers are expected to lose 5% of the total ad market and drop from 23% (in 2009) to 18% by 2013. Similarly, magazines will see their market share shrink from 10.4% (in 2009) to 8.3% in 2014.
In 2011, the newspaper industry is expected to generate $22.8 billion in ad revenue while the online industry will surpass that amount and reach $25.8 billion.
Here are the strategies publishers may use to improve their income picture next year:
- Circulation: To keep revenue coming in the door, publishers will likely increase prices on subscriptions and single copies.
- Apps: Publishers have determined that tablet computing is the future and they have released apps to mimic the printed copies of their content. Next-generation apps will be more sophisticated and deliver what consumers are looking for.
- Pay wall: It’s clear that online revenue will not keep up with the lost revenue from traditional printed publications. And publishers cannot continue to offer content for free. The next logical step, already put in place by publications like the Wall Street Journal, is a pay wall.
- New Products/Services: Another strategy will be to diversify. Publishers are expected to look for sources of non-traditional revenue. This might include sales of new products (brand extensions) or new services (in marketing).