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Ad Shift from Newspapers to Internet Slower Than Some Think

A new report from Banc of America Securities says that the shift of dollars from traditional media to the Internet is happening slower than previously suggested, Editor & Publisher reports.

The research firm looked at 100 leading national advertisers that spent over $1 billion with newspapers. Indeed, more than one-third of ad dollars flowing out of newspapers are moving to the Internet. The advertisers studied spent roughly the same in 2004 as in 2003 on newspaper advertising; however, they upped their Internet spend by 29 percent.

Yet, the shift is happening sporadically. Of the eight categories examined - automotive, retail, telecom/Internet, financial services, general services, entertainment, travel, and media - the Internet gained share in only three of them. Telecom advertisers shifted the largest share from newspapers to the Internet. Retail came in second and general services came in third. Entertainment was the only category where newspapers gained over the Internet.

Banc of America is quick to point out that while Internet growth is advancing, the base is low. Internet advertising only accounts for 5.3 percent of total U.S. measured advertising revenues, newspapers for 21 percent.