New York Times Happy About (.com) Online Results
The New York Times reported ad revenues for May, compared with last year. Here are some highlights:
* May 2006 advertising revenues for the Company’s business units increased 4.4% and total Company revenues increased 4.0% compared with May 2005.
* The Internet ad revenues included in the three media groups above increased 26.9% due to continued robust growth in both display and classified advertising.
* At the end of May, TimesSelect, the fee-based product on NYTimes.com that includes The Times’s distinctive columnists and extensive access to its archives, had approximately 490,000 subscribers, with about 63% receiving TimesSelect as a benefit of their home-delivery subscriptions and 37% receiving it from online-only subscriptions.
* Advertising revenues for About.com rose 59.0%. May’s growth was principally due to a significant increase in cost-per-click advertising. In addition, strength in display advertising continued with increased revenues from the retail, telecommunications, technology and consumer package goods categories. About also showed strong gains in revenue from pharmaceutical, financial, travel, entertainment and auto advertisers. (emphasis mine)
Ad revenues at the paper showed single-digit growth, while the online unit and About.com (in particular) posted significant gains. Total company revenues for May were almost $271.5 million.
Clearly the print product is mature and online is where the growth is. But not all papers will experience that growth. The Times has more resources and is not necessarily representative of what the industry as a whole is capable of.
Greg Sterling is the founding principal of Sterling Market Intelligence, a consulting and research firm focused on online consumer and advertiser behavior and the relationship between the Internet and traditional media, with an emphasis on the local marketplace.