Yahoo!!, Google erode ad dollars from traditional media houses

MUMBAI: The 10 largest information companies seem to be feeling the some heavy duty revenue heat. Here's how... According to a report put out by research and advisory firm 'Outsell', the astounding revenue growth registered by both search engine majors Google and Yahoo!! is coming at the expense of the 10 largest information companies in what is a $263 billion industry.



The poignant question here is with the explosion of spending on search engine advertising continues to alter the marketing scape; have there been any ramifications for traditional information entities?

Without doubt, search advertising has taken off in a big way which has in turn seen traditional informative publications normal advertising revenues dip as funds have been diverted to Google and Yahoo!. A widely used quote from Outsell's report gives a fair idea of the search engine advertising affect in a rather candid manner: "they're [Google and Yahoo!] literally sucking the financial air out of the room."

The ten information companies that have been referred to are - Daily Mail & General Trust, Gannett, McGraw-Hill, Pearson, Reed Elsevier, Reuters, Thompson, Tribune, VNU, and Wolters Kluwer.

Apparently, money that has originally been set aside for traditionally advertising with these companies has been diverted to be used for search advertising. Outsell reports that the 10-member group generated a combined revenue of $60 billion in 2004, which is $4 billion more than the previous year. Google and Yahoo! alone generated $6.5 billion in 2004, which also indicates a year-over-year increase of $4 billion.

The extraordinary growth of Google and Yahoo! has been attributed to the marketing and advertising spending that would have gone to the other 10 companies, particularly newspapers and B2B trade magazine. The reason partially for the shift is due to the fact that marketers are paying too much for print ads or too little for online ones, according to Outsell.

This puts the traditional media companies into a tough mode in terms of garnering ad dollars. Many newspapers get more than half their revenues from classified, which are really susceptible to the type of ads that Google and Yahoo! are offering.

Also, another important point in note being the ROI efficiency that are generated by search related advertising which draw more advertising dollars, reducing the overall amount that is allocated towards traditional ad methods like yellow page listings and print ads.



This new trend may not essentially spell doom for traditional media outlets. Although, what it does point out is that search engine marketing has gone mainstream. Another possibility that might emerge is that marketers might demand a more cost effective pricing from traditional media houses as they have already experienced marketers that have experienced the low cost per click (CPC) with search advertising.

Nevertheless, with businesses discovering how lucrative search engine marketing programs can be, traditional outlets have already started looking for ways to get back in the game.

Latest Reads
Wringley's Doublemint tells a 'fresh' new love story

MUMBAI: Released on Youtube on 21 October, the new TVC of Wringley's Doublemint conceptualised by BBDO Indua and directed by Shoojit Sircar has already garnered over two lac views.

MAM Media and Advertising Ad Campaigns
Flipkart announces integrated brand communication campaign

There are a host of dates earmarked in India’s annual calendar where consumers wait with bated breath to partake of the celebrations. Clearly figuring in this list is the ‘The Big Billion Days’ (BBD), that has been made popular by Flipkart over the past two years. As a concept, Big Billion Day was...

MAM Media and Advertising Ad Campaigns
Colors campaign inspires men to take over Sunday chores

Colors has launched a new movement called #SundayIsHerHoliday. The campaign -- one Sunday at a time -- is inviting every man (and woman) to participate. The goal of the campaign is to inspire and help men take over the Sunday chores of women, so she can get her much needed time off.

MAM Media and Advertising Ad Campaigns
betterU launches Diwali campaign #FestivalOfLearning

India’s online learning marketplace, betterU, has launched a unique Diwali campaign #FestivalOfLearning across its digital platforms.The campaign aims at helping people think differently about their purchases, and highlights the importance of investing for the long term on the auspicious occasion...

MAM Media and Advertising Ad Campaigns
BBH India creates live radio spots for Abbott

BBH Mumbai has released a case study on the first ever live radio spots for Abbott's The Race of Possible’ campaign, which received overwhelming response in India.

MAM Media and Advertising Ad Campaigns
Abhibus's 'Har Safar Mein Aapka Hamsafar' Mahesh Babu, India’s online bus ticket booking platform, has announced superstar Mahesh Babu as their brand ambassador. He will also feature in the company`s marketing campaign called 'Har Safar Mein Aapka Hamsafar' (With you on all your journeys, wherever you go).

MAM Media and Advertising Ad Campaigns
Posterscope rolls out 'Frooti' OOH campaign

MUMBAI: Posterscope India from Dentsu Aegis Network has rolled out a massive OOH campaign for Frooti to make the consumers Live #TheFrootiLife. The core objective of the campaign is to create high visibility and impact for Frooti in the OOH space. Targeted at audiences aged between 15-35 years, the...

MAM Media and Advertising Ad Campaigns
Q2-17: DB Corp revenue up, radio operating profit doubles

DB Corp Limited (DB Corp), home to flagship newspapers Dainik Bhaskar, Divya Bhaskar, Dainik Divya Marathi and Saurashtra Samachar reported 10.5 percent higher consolidated revenue for the quarter ended 30 September 2016 (Q2-17, current quarter) as compared to the corresponding year ago quarter....

MAM Marketing Brands
P Mark TVC features Boman Irani

MUMBAI: P Mark, the front-runner in the mustard oil segment in India, has unveiled its new TV campaign ‘one specialist to another’. Reinforcing its commitment as specialists and educating the masses about the taste, the new TVC pays tribute to P Mark’s exceptional taster in the category.

MAM Media and Advertising Ad Campaigns

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories