In the first 6 months of 2012, Google generated more advertising revenue than all of the US printed newspapers. Combined.
Google generated 10.9 billion usd whilst newspapers and magazines, brought in 10.5 billion usd. Of course we are comparing all of Google's global ad revenue (as distinct from just the USA) so in some ways it's a "little" unfair.
However, that's not the point - it's a trend (as I often say) that data like this gives us. And what it shows more and more, is the transition of Advertising spend online to the detriment of traditional media. In other words, advertisers are taking money from traditional media to spend online, they're not generating "extra" spend.
That's not shocking either, but the quick rise is. Google is 14 years old - traditional media has been around for hundreds.
It also shows a need for print newspapers to get on board the online ad train as quickly as possible and I have to say, in Ireland anyway, they are. Their online revenue will compensate for the loss in traditional revenue and again, as I've always said, the Internet is an opportunity for print publishers. The opportunity to compete with TV broadcasters. And print will win if they can just weather the storm.
This is not a trend that can ever be reversed. In fact, it will get stronger and so online advertising formats will begin to flourish to a greater extent. Therefore, media needs to develop them and quickly.
For newspapers, video is the answer. Pre-roll advertising allows them to compete against TV broadcasters for news/weather/sport/entertainment. And they will win advertisers whom traditionally didn't advertise in press, making the Internet, their greatest lifesaver...if they get it right.
Newspapers can break news before TV stations whom withhold their news for their lucrative evening ad breaks. First with the news, brings in the audiences and that will bring in the revenue. Newspapers are the new broadcasters. It's TV stations that are going to be in trouble.
And they don't know it.
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