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Trends

Retail Leads Online Advertising Budgets

The retail sector will lead the way in the U.S. in spending advertising money online in 2013, according to a new report from eMarketer.

Total digital ad spending will rise 14 percent this year after increasing 15 percent in 2012 and nearly 22 percent in 2011.

Out of that total, retail will spend the most at 22 percent of total digital ad expenditures.

“Nearly two-thirds of this retail spending will focus on direct response formats, such as search, mobile messaging, classifieds and directories, or lead generation,” eMarketer says. (more…)

Stored in Online Advertising and tagged ,

Paid Access Fails to Find Right Model

A recent series of articles revealed that Newsday.com has signed up only 35 paying subscribers since putting itself behind a pay wall several months ago. The results are not a surprise.

Newsday.com has a rate of $5 a week for anyone who is not a subscriber of the Newsday print product or of the Long Island cable TV service, which is owned by Cablevision and which also owns Newsday.

The $5 a week rate is one of the highest ever attempted by a newspaper implementing paid access to its Web site. A more typical rate is $5 a month rather than $5 a week.

The great majority of online newspapers that have attempted paid access have failed at it and have reverted back to a free, advertising-supported model. A few reasons for these failures are consistent. (more…)

Stored in Website Management and tagged ,

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