Is Newspaper Advertising Going Online?

Q:How much is online advertising for Spanish-language newspapers growing compared to print?

A: Spanish-language newspapers will continue to see growth in ad revenues in the print editions for many years ahead, because the habit for traditional media vs. online is still stronger for Spanish-dominant Hispanics. But obviously recognizing that the online medium will continue to grow in importance for this audience, Al Día launched its companion website, aldiatx.com, simultaneous to the print edition, and has invested significantly in this medium.

There is little question that online is rapidly growing as an important marketing tool to reach the Hispanic audience. This is reflected in the fact that ad spending aimed at this audience reached $100 million in 2005, according to estimates by the Internet Advertising Bureau (IAB). That's up 33 percent from 2004 when spending in the market was $75 million, and up 10-fold from 2002, when it was just $10 million. That's more than several traditional media categories, including out-of-home and magazines, according to an article Joel Russell wrote for Hispanic Business (Surfing in Two Worlds, December 2005).

Q: How much of the overall increase in online ad spending will go to Hispanic targeted advertising? And of this, how much will go to Hispanic newspaper websites in 2006? What percentage do you think you will get by 2010?

A: Hispanic Network Television is projected to have the largest percentage increase for all media categories in 2006. This is followed by Internet spending for general market (See chart below)

Considering that total online ad spending was $5.8 billion in just the first half of 2005, according to the Interactive Advertising Bureau, the $100 million in total ad spending in 2005 specifically aimed at Hispanics, results in less than a 1% approximate allocation. So there's a lot of room for growth. For the general market, ad revenues were consolidated at 74% with the top 10 websites, none of which is a newspaper. For Spanish-language websites, Univision is #1, and this is followed by the Miami Herald, so media companies and newspapers are obviously much more competitive in the Spanish-language category.

2006 Growth Estimates by Media

% Change vs. 2005

Hispanic Network Television

10.4%

Internet1

9.1%

Cable Network Television

8.4%

Outdoor

7.2%

Spot TV

7.0%

Syndication Television

4.8%

Network Television

4.5%

Newspapers

4.3%

Consumer & Sunday Mags

4.0%

Radio

3.6%

Business-to-Business Mags

1.0%

1 Internet estimates do not include paid search advertising

Source: TNS Media Intelligence


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