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Online marketing budgets exceed newspaper spend for the first time

Created by : Purvi Ghosh, Marketing analyst, Percept Advertising  | 12 22 2010 05:39:24 +0000
Industry : Advertising/PR/MR/EventsFunctional Area : Digital marketing(Sales & Marketing)
Keywords : online marketing digital spending marketing budget online marketing budget newspaper spend
Activity:  560 views;  last activity : 01 10 2011 16:49:17 +0000

A new report from eMarketer says that online marketing expenditures have surpassed newspaper spend, showing the continued value of digital marketing initiatives.

Online marketing budgets narrowly surpassed the established newspaper advertising channel for the first time during 2010. Whereas newspaper spend dropped year-over-year from $27.6 billion to $25.7 billion, expenditures on web-based channels were up during the same period from $22.7 billion to $25.8 billion.  Does this mean that newspaper ads will take a back seat??

  
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Its really difficult to say that newspaper ads will take a back seat, but in todays times we are seeing the change, online is a very much interactive medium and the attention span of a consumer will be more than that of a news paper. But News paper has been the mainstay for advertisers as everybody wants their daily dose of news through print media. But yes today marketers are considering the online media, as the WOM and one gets more clicks and also you can easily target a relevant audience out there for your brand.
By Purvi Ghosh, Marketing analyst, Percept Advertising  12 22 2010 05:39:24 +0000
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yes
By aniruddha kumar mishra Mishra, MBA/PGDM student, UPTU Lucknow  | 12 23 2010 09:55:05 +0000
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Any new technology will surpass and stabilise at some place hovouring around a point.
By PARKASH VIR, Civil Engineer, Louis Berger Group Inc  | 12 22 2010 09:35:17 +0000
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Any new technology will surpass and stabilise at some place hovouring around a point.
By Gopala Krishnan.H, CMD, DJA-Inc  | 12 22 2010 07:27:09 +0000
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globally-YES. for india- NO, lots of factors like internet penetration, broadband speed, mobile internet (we are still struglling with 2G scams).
By Punit Chahar, Online Marketing Manager, Mayorista Online SA  | 12 22 2010 06:57:32 +0000
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Its too early to call the demise of the newspaper. I think it will still be around for sometime at least in india. Main reasons for newspapers to survive wil be the rural penetration factor of the internet coupled with ecommerce not taking of fully. Once these two things happen then maybe the spread of newspapers would diminish but not become extinct completely.In order to compete with online tools, newspapers will have to reinvent their wheel and become mean and trim to compete. No more stories of rape and murder to sell the paper i guess.
By Jaygopal Raghavan, Marketing Manager, Landmark Group  | 01 10 2011 16:49:17 +0000
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Cmon, how many of us actually get online on a frequent basis or have the access to internet. Comparatively, lesser than the print media. Though the budget has exceeded the print media, the impact on the masses is very much on the side of print media.Think hard and get your perspective right.
By Saibal Ray, SQA, confidential  | 12 25 2010 16:00:56 +0000
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Cmon, how many of us actually get online on a frequent basis or have the access to internet. Comparatively, lesser than the print media. Though the budget has exceeded the print media, the impact on the masses is very much on the side of print media.Think hard and get your perspective right.
By Saibal Ray, SQA, confidential  | 12 25 2010 15:58:39 +0000
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Highly impossible for another 2 decades for this to happen in India. The report may be misleading because the netizens who see the Ad or buy online are still very less. Still e-business in India is in the nascent stage. The print media is still an unchallenged option. It may be true for the global business situation as a whole.
By suhaschandra deshpande, Marketing Associate  | 12 23 2010 20:39:09 +0000
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It is impossible. The figure posted is incorrect. Almost 27% of advt. budget is spend on print media today and it is only 2-5% budget is marked for online campaigns as per the industry standards. It may vary 3-4% based on product category. Online medium is just at nascent stage. The majority of its users are in metro and mini metros, thus reach is limited whereas print medium has high reach and acceptability. The cost of advertising in print media is much higher like for e.g. If you release on quarter page advt. in TOI Delhi the cost would be like 5 – 7 lakhs where as you can plan whole month activity in this budget for online medium. Thus the cost spent on Print medium will always be higher than on online medium. Online can support print medium but can never replace it due to various factors like literacy level, infrastructure requirement for internet , reach …etc.
By Himanshu Jha, Head/VP/GM-Client Servicing, Crayons Advertising Limited  | 12 23 2010 05:51:57 +0000
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I agree with your point of views. Thanks for the referral ms.Purvi.


By NATTERAJA R. ARIKRISHNAN, GM-Projects, Bentec Electricals & Electronics Pvt. Ltd  | 12 22 2010 17:16:10 +0000
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I dont agree with the statement. Many among us spend a lot of time on net but still while the way to office or even before, taking breakfast may be more than 60 percent such people use to have a look on News paper.
By Anand Sharma, Monitoring the research funded by DIT, Department of Information Technology  | 12 22 2010 12:56:26 +0000
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Purvi I agree with your point of view. You will observe the revenue growth inprint media will grow very slow but the other media spend will grow faster. Since today the companies are having a strong bottom line will try the future mode hence the growth will higher.
By Rathin Deb, Advisor and retail consultant, currently as Branch Manager, Tower Infotech Ltd  | 12 22 2010 12:53:56 +0000
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There is always a special place for news paper ad in India & in every heart of Indians.
By SHRIKANT MANOHAR DANKE, Project Manager, Phadnis Infrastructur Ltd  | 12 22 2010 08:33:50 +0000
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i agree with Purvi,News papers advts. and Internet marketing are two different genre.The news papers will continue to occupy prominent space. 
By Mohammad Bakhsh, Consultant(Civil), Rail Vikas Nigam Limited  | 12 22 2010 07:56:19 +0000
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no never,even though the internet online Ads are growing as the broadband also growing world wide.This only affect the news paper in indirect way,such as the Ads coming to print-media may be reduce or less but again it will sustain,such as Our country INDIA,some parts of Asia too.The online Ads are more into the Countries culture and ethics.Thats why,US and EUROPE are big into Online marketing budgets and related thing. As long as India and few other Asian countries are Considered,online Marketing didn't affect the Print -Media more as we Compared to other Western World and Some Far eastern Modern World.This what my view and Perception.
By govind , Proprietor, G creative  | 12 22 2010 06:32:48 +0000
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