Share: Q3 Profits Down 96% At NYT

By | November 5, 2016
 

Why has the New York Times Company dropped from $2 billion in annual ad revenue during the early 2000s to about $600 million today? According to Jeff Desjardins at Visual Capitalist:

  • Physical circulation of The New York Times and other newspapers is dropping rapidly.
  • Traditional display ads aren’t particularly effective, and are part of the “old-school” of digital thought.
  • Programmatic bidding drives down prices for these ads, bringing in even less revenue.
  • Digital lends itself to long-term, results-driven campaigns. It takes time to set these up and measure them properly, especially at scale.
  • Ads need to match the editorial stream to be effective. Quality over quantity.
  • There’s more competition in the digital space, which is a stark contrast to the distribution oligopolies enjoyed by big newspapers in the legacy era.
  • Madison Avenue is also slow at switching to digital, which only adds to the lag time.

new-york-times-chart

Full article: http://www.visualcapitalist.com/chart-new-york-times/


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