GartnerG2 Survey Shows Only 27 Percent of Print Publishers See Online Advertising As a Means to Increase Revenue
STAMFORD, CONN., October 1, 2003 — Although online advertising is expected to have significant growth during the next few years, the majority of print publishers see either no change in the relationship between print and online delivery or don't know what the future holds, according to a survey by GartnerG2, a research service of Gartner, Inc. (NYSE: IT and ITB).
In April 2003, GartnerG2 conducted a phone survey of 423 U.S.-based publishers regarding their key business issues in light of the growing trend of digital distribution.
According to the survey, only 27 percent of publishers foresee any increase in online advertising revenue in the next five years. Independent publishers (single publication owners) are the most optimistic about the future of online advertising with 25 percent seeing an increase in online advertising revenue, while only 16 percent of syndicates (owners of multiple print publications) see an increase.
"There is an uncertainty in the print marketplace as businesses and new product strategists plan for their immediate and long-term futures," said Allen Weiner, research director of media industry research at GartnerG2. "In many cases, publishing companies face a directional disconnect where top-level management, newsroom/editorial personnel, IT professionals and new media staff each have their own vision for the future. Too many print companies lack a process for blending these visions into a cohesive product plan and development road map."
GartnerG2 analysts recommend that publishers create a framework to ensure that there aren't any missed opportunities. Currently, the majority of publishers lack registration systems, which are required to support targeted advertising and personalized content. Fewer that half of publishing conglomerates and syndicates bundle print and online together, thereby losing cross-selling and marketing opportunities. Fewer than half of all publishing companies employ a unified strategy for print and online ad sales, which also leads to missed opportunities and a duplication of effort.
"Print publishers are uncertain about their digital future because the sector lacks a clear understanding of future print and digital synergies," said Weiner. "The fundamental issue for magazines and newspaper organizations is to convert the threat of online cannibalization into a business opportunity that meshes with current strengths and future strategies."
Additional information is available in the report "Print Publishers Are Uncertain About Their Digital Future." This report looks at how print publishers view the future of emerging online content delivery and advertising opportunities. The report is available on the GartnerG2 Web site at www.gartnerg2.com/qa/qa-0903-0051.asp.
About GartnerG2
GartnerG2 is a research service from Gartner that helps business leaders guide and grow their businesses. It offers a steady stream of relevant data and insights related to companies, markets, and the external forces affecting businesses today, and in the future. For more information about GartnerG2 services, please visit www.gartnerG2.com.
About Gartner:
Gartner, Inc. is the leading provider of
research and analysis on the global information technology industry. Gartner serves more
than 10,000 clients, including chief information officers and other senior IT executives
in corporations and government agencies, as well as technology companies and the
investment community. The Company focuses on delivering objective, in-depth analysis
and actionable advice to enable clients to make more informed business and technology
decisions. The Company's businesses consist of Gartner Intelligence, research and
events for IT professionals; Gartner Executive Programs, membership programs and peer
networking services; and Gartner Consulting, customized engagements with a specific
emphasis on outsourcing and IT management. Founded in 1979, Gartner is headquartered in
Stamford, Connecticut, and has 3,700 associates, including more than 1,000 research
analysts and consultants, in more than 75 locations worldwide. For more information,
visit www.gartner.com.
