NYT: Our Online Ad Rates Are Holding Steady. We Just Need To Sell More Ads...And Fire More People
A silver lining in the New York Times' dismal Q2: online display ad rates are holding steady on NYTimes.com in the face of a pretty challenging ad market, the company says. The problem? They're not selling enough of them.
Some notes from the Q2 call on NYT's digital businesses:
NYT digital chief Martin Nisenholtz says pricing of "premium" online ad inventory was up over Q1, but saw continued "bifurcation" between rates for premium ads and remnant banner ads sold by ad networks.
50% of ad inventory on NYTimes.com is sold on higher-margin CPM basis, rather than cost-per-click basis for remnant ad inventory. Display advertising was soft at About.com, but Nisenholtz attributes this not to the economy, but to "execution issues" that are being addressed.
50% of ad inventory on NYTimes.com is sold on higher-margin CPM basis, rather than cost-per-click basis for remnant ad inventory. Display advertising was soft at About.com, but Nisenholtz attributes this not to the economy, but to "execution issues" that are being addressed.
And on the print business:
The overlap between print subscribers of the NY Times and the WSJ is 11%; more significant as the WSJ attempts to gain market share by increasing non-business news. CEO Janet Robinson says the NYT has reduced its newsroom staffing by 100, to 1,250 since the beginning of the year, but adds "it's still at a very high level." Hence plans to increase buyouts this year.
See Also: NYT's Ugly Q2: Misses Revenue
NYT Hires Former Digitas Exec To Run About.com
What's Next For The NYTimes Online? Widgets, iPhone Apps, APIs, And More
WSJ Gains, NYT Loses Circulation Over Last 6 Months
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Of course, this was the same year that Janet Robinson ascended to the throne and they gave Russ Lewis a full year's worth of salary and bonus to give Janet the top spot a bit early -- and what a job she's done!
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