Print and online advertising/sponsorship. Today’s mainstream media and tomorrow’s emerging media surely will still have a base of both print and online advertising and "sponsorship", including local search and click-through advertising models. These will continue to be a part of the revenue mix. To date, however, print advertising revenues at existing newspapers are declining. Online revenues, while growing, appear to generate, at best, about 10 cents on the dollar compared to revenues generated by print advertising.
Revenue estimate from traditional print and online sources: $2. 4 million *
This estimate represents a 50% reduction in revenue generated by traditional advertising at an average newspaper of 25,000 circulation today. (Based on a conservative estimate that at least 60% of traditional newspaper revenues come from traditional print advertising.)
Traditional revenue sources included in this formula include:
- Formerly print and online classified advertising for automobiles, help wanted and real estate.
- Formerly print and online local retail display advertising;
- Formerly print and online national advertising, including film, travel, co-op;
Online revenue growth at mainstream media is growing, but in 2007 represents 8% to 15% of all revenues. Even at double-digit growth rates, the online revenues are years away from matching traditional print and commercial broadcast advertising revenues.
However, The Next Newsroom has heavily discounted the contribution that traditional advertising will play in the new business model.
Whereas about 70% of current newspaper revenues today are generated from traditional advertising sources like auto dealers, big department stores, and classifieds, The Next Newsroom model estimates no more than 30% of its revenues will be generated from these traditional sources.