There are rumors swirling that the San Francisco Chronicle is on the verge of collapse. As someone who grew up reading the Sporting Green (when it was actually green) and Herb Caen it is hard to believe. However, as the owner of an agency focused on online advertising it is all too easy to believe.
These stats from today's Wall Street Journal are the reason. The newspapers old school classified business cannot compete with search engine advertising (especially Google's Pay Per Click program). If you own a newspaper the numbers are very discouraging. It isn't even close.
In the first six months of the program, Ms. Bouthillet says, the search-engine ads delivered 5,250 applicants, at an average cost of $4. By contrast, Baylor paid an average of $30 for each of the 3,125 applicants who came via job boards, and $750 each for the 215 applicants who replied to a newspaper or magazine ad.
As a result, Ms. Bouthillet says Baylor has reduced spending on job boards and print ads. . . .
Hopefully the newspapers can find a new business model in time.
IMA
Jeff Conlon is the co-founder and CEO of IMA Interactive, an online agency located in the San Francisco Bay Area. IMA Interactive provides website design, online video production and search engine marketing services to a variety of industries both locally and nationally.