Martin Nisenholtz Eyes the Digital Landscape from Atop the New York Times
With a decade’s worth of experience at one of the most established media conglomerates under his belt, Nisenholtz stands in a privileged place from which to handicap the field. And to his mind, the mathematical equation that dominates today’s whole advertiser-publisher relationship is pretty clear-cut. “The business model that most Internet publishers have is very simple,” Nisenholtz says. “It’s the number of unique visitors, times the times they visit you during a given period, times the amount of pages they view per visit, times the rate per page. It’s not rocket science. It’s basically a straightforward formula that all of us live by, whether you’re the New York Times or Weblogs, Inc.”
Whether this equation will continue to hold steady in an ever-changing industry isn’t clear, but if Nisenholtz has any prediction to offer about the online arena, it’s that it’s simply going to keep growing. Why? “[Because] the online world is more measurable, more transactional and less expensive. So you put those three things together, and you’re going to continue to see pretty enormous growth,” Niseholtz offers.
“The other thing I think you’re seeing is as the online world reaches critical mass, as more people have broadband, there are better ad-serving and measurement technologies out there,” he adds. “So you will see richer media formats and more brand advertising coming on stream.”
Ever the pragmatist, however, Nisenholtz remains cautious about using hyperbole to describe the future of the field. It’s true, he says, that “we’re seeing this secular change in the advertising business, where money is flowing increasingly to digital media because it’s so measurable. I’m not denying that. I just think you have to keep that in perspective. It’s still a very small part of the whole total advertising pod.”
Famous last words, perhaps? Possibly, but who are we to match wits with a scholar?
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