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Advertisements in print and TV get much more revenue than digital.
Advertisements in print and TV give much more revenue than digital.
| Print and TV | Digital | |
|---|---|---|
| How is it sold? | Advertisements in print and TV are sold directly by the news company. Given that, 100% of the revenue belongs to them. | Online, most quantity of advertisements is sold indirectly by ad networks. Given that, the publisher loses out 30-40% of ad revenue to the ad network. |
| How is reach measured? | In print and TV, it is assumed that the entire circulation (MAU) is reading. | Online, one can precisely calculate the DAU, which for most news websites turns out to be only 3-8% of MAU. |
| Brand Premium | There’s is a prestige to advertise with big news brands. | It isn’t feasible for brands to select that they want to advertise with a specific publisher. |
| Bid up or down | Sometimes companies will bid up to block out competitors from advertising on specific print and TV channels. | Ad engines force publishers to bid down, i.e., whoever has the lowest price will get the ad. |
| Implication on content | Premium content is valued. | All content is measured against page view. Hence, a detailed investigation is measured against a cat video. |
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