Nieman Foundation at Harvard
The New York Times is buying the gadget and technology review site The Wirecutter for $30 million
ABOUT                    SUBSCRIBE
May 18, 2009, 3:57 p.m.

Will display advertising return after the recession?

Dean Singleton says that the big problem with most analysis of the current newspaper business downturn is that it assumes that the change is secular, not cyclical:

The problems of newspapers, in my view, are very mis-covered by media analysts today. They don’t understand the difference between a severe economic downturn, the most severe we’ve seen in my lifetime, and structural change. There are both going on. There’s structural change going on, and it has been for several years, and that will change our business model. But the majority of the revenue declines we’re seeing in 2009 are plain, old economic downturn.

But, what of the former newspaper advertisers that make it through the current downturn alive? At that point, through creativity and brute force, they’ve weathered the storm without newspaper advertising.  Once advertisers discover that business goes on with or without print advertising, what could possibly motivate them to reopen their wallets? Isn’t this what happened with Craigslist, which did not steal share of classified revenue, but render it moot?

POSTED     May 18, 2009, 3:57 p.m.
Show comments  
Show tags
Join the 15,000 who get the freshest future-of-journalism news in our daily email.
The New York Times is buying the gadget and technology review site The Wirecutter for $30 million
For the price, the Times is getting one of the real bootstrapped success stories in the past decade of digital media — and a toehold in a growing e-commerce revenue stream.
From East Coast to West Coast: The company behind Miami’s The New Tropic is expanding to Seattle
WhereBy.Us is one of the most interesting digital startups working in the local news space. After starting in Florida, it’s launching The Evergrey in Seattle, and it has its eye on additional markets.
Newsonomics: Here are 10 storylines we’ll be talking about into 2017
The next generations of Murdochs and Sulzbergers step up, two newspaper chains chart the consolidation of the industry, and a Trump-driven shift in straight news reporting.