Mike Andrew Consulting

Digital Migration Hurts Traditional Media Revenues More than Expected

By mike, Jul 08 in blog with 0 comments

The ongoing migration to digital media is damaging traditional media categories more than expected, according to a new white paper from PriceWaterhouseCoopers.

Digital Migration Slams Publishing, Radio
The annual decline in 2009 revenues in several traditional media categories was more severe than originally forecast, according to PriceWaterhouseCoopers research. Most striking was the decline in out-of-home revenues, which fell approximately 13% in 2009, compared to a forecast of about 7%. In addition, radio revenues declined about 9%, compared to an approximately 7% forecast.

The other two media categories which had a 2009 revenue decline more severe than originally predicted by PriceWaterhouseCoopers were newspaper publishing (approximately 12% compared to a forecast of slightly more than 10%) and consumer magazine publishing (about 11% compared to a forecast of about 9%).

Most Digital Categories Grow Beyond Expectations
In contrast, most digital media categories which experienced annual revenue growth in 2009 increased more than originally forecast. Most significantly, internet advertising revenues, which were predicted to decline about 3% in 2009, rose about 4%.

In addition, revenue growth significantly outpaced expectations in categories such as internet access (about 8% compared to a forecast slightly more than 5%) and filmed entertainment (3% compared to about 1%).

The only exception was the revenue stream from video games, which only grew about 3%, compared to a forecast of about 8%. PriceWaterhouseCoopers analysis suggests this was primarily due to a number of high-profile developers delaying the release of new games originally scheduled for 2009.

Print Media Ad Spending Mostly Lags
Print media, on the whole, continued to lag the overall ad market in Q1 2010, according to recent data from Kantar Media. Consumer Magazine spending fell 3.9% from a year ago, while Local Newspapers dropped 5.6%. There was improvement in some narrow segments, as Sunday Magazine expenditures jumped 13.7% and National Newspapers increased 9.1%, primarily from gains at the Wall Street Journal, according to Kantar.

About the author

Mike Andrew has been working with the Internet and small business for over 12 years. Mike has been a keynote speaker at conventions and seminars and conducted social media training sessions all over the world. Mike has an extensive media background having worked in electronic media for over 30 years. Mike specialises in social media and Internet marketing strategy, SEO techniques and search engine marketing campaigns. His articles appear on numerous blogs around the web as well as national magazines.