ADOTAS – The New York Times Co. may look like dreary news central with layoffs in the newsroom and advertising revenue dipping 27% to $571 million, it may be easy to overlook the bright side of the otherwise gloomy third-quarter earnings report.
Beyond the headline-grabbing loss of $37 million for the quarter, it should be noted that online ad revenue slipped 8.2% year over year. Okay, maybe that doesn’t sound so great, but it’s a lot better than second quarter’s drop of 15.5%. In other words, it seems we’ve seen the bottom of the canyon and we’re making our way back up.
But the real promising news bolsters a trend that appeared in Gannett and McClatchy’s earning reports — online advertising makes up a larger portion (23.5%) of total ad revenue than the year before (18.6%). Despite sharp print ad losses, Gannett and McClatchy noted a healthier online ad environment. Add to that The Wall Street Journal Office Network — a service that combines the Journal online with stock updates and scrolling news — reports that ad revenue is up 100%.
It would seem that advertisers are forgoing the old gray lady and her print brethren for their sexier digital grandchildren. Some of this may be the result of a faster recovery in online advertising, but the environment seems to be pointing to a sea change favoring Internet advertising over most other mediums.