Tuesday, June 9, 2009

Gary Pruitt's prediction of $200 million in online revenue for 2009 in doubt -- latest results show big plunge in online revenue

Gary Pruitt predicted McClatchy would make $200 million in online revenue this year, but that prediction is in jeopardy, according to a new study showing online revenue is plunging.

For years, even after the economy began to buckle under the weight of a recession, online advertising revenue remained relatively strong. But a new study, released on Friday, shows that fiscal malaise has finally – and fully – struck the digital sphere.

According to the Interactive Advertising Bureau and PricewaterhouseCoopers, online ad revenue in the US market sank to $5.5 billion in the first quarter of 2009, down 5 percent from $6.1 billion in the fourth quarter of last year. It is the first major slump of its kind since the burst of the dot-com bubble in 2002. (Revenue levels dipped – although not this drastically – in 2008.)

The news could be especially troubling for magazines and newspapers, which have increasingly turned to the web to make up for the loss of print ad dollars. Over the past few months, many outlets have shuttered or cut back on their print operations. In February, The Rocky Mountain News, the oldest newspaper in Colorado, ceased printing, and in March, the Seattle Post-Intelligencer shut its presses.

Remaining papers, such as the Boston Globe, have struggled to deal with declining print ad revenue – much of it lost to Craigslist, and other classified sites – while shifting to a web-centric marketing strategy. (In April, the Christian Science Monitor began publishing its daily edition online only.)

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Hat tip: email



Anonymous said...

Looks like they continue to make absolutely all the wrong moves.

But since they lie and sleep with the DNC, they should wave their tin cups in their direction too. Just like the Boston globe.

Anonymous said...

Silly wabbit! You forget we were selling Messiah souvenirs! We made half that amount selling Obama Soap on a Rope in San Fran Sissy alone! We'll make up the rest selling to Democrats in Prison.

Anonymous said...

What was the last thing Gary had right? Aaah...er....let's see....I got nothin'.

Anonymous said...

8:37 ... you can't always get what you want
But if you try sometimes well you just might find
You get what you need

Anonymous said...

I have never posted here but as an employee I can see where the 200 million is in doubt. Online advertising just doesn't work for the small businesses. The vast majority of the sales reps company wide deal with small, mom and pops. Yet they are expected to sell these large online packages.

And now the micromanaging has begun. Old 60's and 70's sales management styles have reemerged.

Management just doesn't get it. Salespeople should sell the products that will help the customers grow their businesses. Not what the company wants them to buy. You'll lose more customers that way. From what I understand the sales department is being forced to become slimy used car salespeople.

Anonymous said...

From what I understand the sales department is being forced to become slimy used car salespeople.

Don't worry about it too much. Their plan is to do away with the sales departments completely and contract it out to advertising agencies.

Besides, who is the most slimy? A used car salesman selling you someone else's headache, or a newspaper salesman selling you bullshit wrapped in bird cage lining?

Anonymous said...

1:13, Amen, you nailed it on the head, we are a small market too. Many of our accounts don't even have email never the less do they have a clue as to running their own website or even thinking about updating. At an SNA meeting last fall, even Best Buy said they haven't totally figured out how to utilize the web. How the heck are my mom/pop shops gonna? They sell product when they run ads in print and get immediate results.
Even our online product is weak and many times out of date.