Google's ad business now takes in more ad revenue than the whole of the U.S. print ad business. Audiences have shifted online and ad spending is following.

1. Audiences Continue
Shift to Digital
Dr. Augustine Fou
http://www.linkedin.com/in/augustinefou
November 13, 2012.
November 13, 2012 1

2. Time spent with media…
…continues shift to digital
November 13, 2012 2

3. Ad Spend Shifts to Digital
Source: eMarketer, March 2011
Outdoor (4%)
Directories (2%)
Magazines (7%) “Other”
Radio (10%)
Newspaper (11%)
Internet (25%)
Television (39%)
… at expense of newspapers/magazines
November 13, 2012 3

4. Newspaper Ads Declining
Classified ad revenue Overall ad revenues fell
declining since 2000 off cliff (back to 1950’s
levels)
November 13, 2012 4

5. Newspaper Companies
Gannett Co., Inc. (GCI) - $3.4B market cap July 2012
New York Times (NYT) - $1.1B market cap July 2012
Both off 70-80% since 2007 peak
November 13, 2012 5

6. Magazine Ads Declining
Circulation
declining
Ad prices
pressured by
online
alternatives
Shift away
from reach to
performance
November 13, 2012 6

7. Magazine Companies
Meredith Corp (MDP) - $1.4B market cap July 2012
Martha Stewart (MSO) - $235M market cap July 2012
Off 50% (MDP) and 80% (MSO)
since 2007 peak
November 13, 2012 7

8. Google is now larger than…
… the U.S. Print Ad Business
November 13, 2012 8