Newspapers continue to struggle with digital branding, but advertisers are now savvy to the digital landscape. And they’re expected to spend $667.65 billion in paid digital media advertising by 2018. Meanwhile, American newspaper ad revenues have plummeted by more than $40 billion since 2000.
A failure to anticipate and keep up with the digital technology revolution is partly to blame. Whatever inroads news media companies have been able to make with online ad revenue have not offset the freefall of print ad revenue. Worldwide newspaper ad spending continues to fall, as it has been for more than a decade.
But it’s not too late. After all, would Amazon founder Jeff Bezos purchase the Washington Post for $250 million, if the industry was dead and buried? One of America’s most successful digital entrepreneurs sees a future in newspapers.
Globally, brands are projected to spend some $592.5 billion in advertising across mediums in 2015. Of that, $189 billion will be spent in the U.S.
According to an Emarketer.com story, global digital spend alone will reach the neighborhood of $170.5 billion in 2015, while global mobile spend will be $64.2 billion. Comparatively, 2015’s global print spend is looking closer to $95.5, according to PWC.com and TechCrunch.
Paid media spending worldwide totaled upwards of $500 billion in 2014. According to statistics website Statista, advertisers will dedicate up to $667.65 billion toward paid digital media advertising, fueled by increased investments in digital and mobile, by 2018. North America continues to reign as the world’s largest traditional, digital, and mobile advertising market as advertisers in the United States allocate more toward online and mobile ad formats than anywhere else. At the same time, advances in programmatic advertising allow digital publishers to get smart about their inventory.
It’s been said before, but it can’t be said enough. Newspapers need to develop laser-like focus on digital, which represents the only future with possibilities. Developing a strong digital presence is key.