The restructure of local advertising

Implications for local newspapers and radio

Digital Insight Report - April 2009

The restructure of local advertising: Implications for local newspapers and radio

Internet marketing has triggered a restructuring of the advertising ecosystem. One by one each sector of brands have discovered how their marketing budgets could work more efficiently online and switched significant portions to their websites, email and online media. The local advertising sector took longer to be affected, but as these changes have taken place, the media substitution is clear. Under the dual pressures of agile classified pureplay business models and the Google effect, the profitability of local newspapers has collapsed. Local radio shares the additional challenge of online music, competing for audiences. Only local outdoor media seems protected. As the notion of local advertising fundamentally changes, innovation continues. Local businesses have a greater choice of marketing media and tools than ever before. This report examines some of the trends and themes relevant in the local advertising market.

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