The graph, reflecting research by the respected Borrell Associates organisation, predicts growth for online and contraction for offline advertising in the real-estate category. With newspapers relying on real-estate ad revenue, this contraction in revenue must impact on their model. I suspect this is what is driving many city and regional newspapers in the US to contract and new free dailies to start up – even with home delivery models.
There is no point in ignoring these challenges. Newsagents rely on newspapers and and these trends in the US will hit here eventually. Planning today for a bright future with less reliance on newspapers ought to be part of our mission in 2008. Sure publishers tell us it’s business as usual. They need to. Facts from the US and Europe paint a different story, a story we need to pay heed to.
We can face the news as reflected in the research from Borrell Associates as would a Kangaroo staring in the headlights, and freeze. Or, we can digest this and other signpost information and act like business people and embrace change.