Monday, March 8, 2010

Digital ads pass those in print

According to Forbes, the day has arrived when American advertisers are spending more on digital media than on print.

The study by Outsell finds nearly a 10% increase in ad spending on digital media pushed it past print. However, print magazines continued to increase advertising (roughly 2%), and mobile advertising seems almost dead, off 16%. A reality check by Outsell's Chuck Richard: "The Sports Illustrated swimsuit iPhone app was touted by many as a huge success. The issue is the most hyped magazine event of the year. The app was the 33rd-highest-grossing mobile app in the iPhone store. But if you do the simple math, 32,000 people paid $2 apiece to download it. That's $64,000." A single page of advertising in the print version of the swimsuit edition, says Richard, brings in about $135,000 a page. "It's time for a reality check."

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