Newspapers can’t make money online because ‘advertising costs too darn much’

ClickZ
Why can’t newspapers make money online? Simple, says Sean Carton: “Newspaper advertising costs too darn much.”

Carton refers to an analysis by comScore that cites the average cost per thousand impressions — or CPM — for newspaper websites as $6.99. Compare that to $2.52 for online advertising and just 56 cents for social media.

Print newspapers? Don’t even go there: They have an average CPM of $60, writes Carton.

Unless they can figure out how to pare down costs, price themselves competitively, and, more importantly, offer content that’s worth paying for (see The Wall Street Journal), desperation tactics such as paywalls are only going to hasten the inevitable decline.

The former dean of Philadelphia University’s School of Design and Media, Carton is now developing the Center for Digital Communication, Commerce and Culture at the University of Baltimore.

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  • http://www.AdvertisingResults.com Leigh Ann Kristiansen

    As a media buyer that specializes in print, I’m a little torn on this one!  

    First of all, not all print newspapers are too high.  I specialize in classified advertising nationwide concentrating in newspapers.  For us, ads in print only are not a problem, the insanely high prices are an issue with the forced online buys that are associated with recruiting ads.  Most of the major dailies have either paired with Monster or Career Builder and they force advertisers to buy the ad in the print product along with an online posting.  The ones affiliated with Monster in particular are bad because they generally will not allow the client to opt out of the online portion of the buy and get a lower rate.  Many of our clients have their own online marketing contracts and do not need the newspaper’s additional online coverage.  In the end, the customers are forced to spend $400, $500 or more to buy the print product (and online) if they want to run in the newspaper.  Some of the worst offenders are daily papers like the Billings Gazette or the Idaho Statesman.  These aren’t large newspapers, but they cost more than larger papers in much larger cities!  We have truly have clients that have opted out of running in those papers altogether and elect to run with alternative print media like shoppers, employment guides, etc.  They are much more reasonable and generate leads at an affordable rate.  

    It’s very frustrating for me.  I am a print person and love the print media options, but it sometimes feels like the publishers do their best to run off business and put themselves out of business. On the bright side, I often hear that the leads my clients receive from print are of a better quality than what they receive online.  Unfortunately, for some papers, the cost per lead still isn’t worth it.

    I have to work very hard to make sure our customers are spending their ad budget as wisely as possible and sometimes that means we reach out to print products other than major dailies.

  • Anonymous

    So his advice is to stop selling ads for a $60 CPM and put more energy into selling ads for a $2.50 CPM?

    Those who can’t do, teach.