The Rise of the Internet and the Slow Death of Print - Taking the Fight for Consumer Dollars Online

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It seems like many execs throughout the newspaper industry are having a hard time coping with one fact: We are now in a digital era where most people get their news and information online and, more importantly, for free.
And it is no wonder why companies and retailers around the world are funneling their advertising dollars to the online advertising industry.
According to recent figures released this week by the Interactive Advertising Bureau and PwC, U.
S.
Internet advertising revenue jumped 15 percent to $26 billion in 2010, setting a record high and proving that more and more companies are significant investments to reach more people online.
The report also found that revenue increases in the fourth quarter of 2010, up 19 percent to $7.
5 billion.
In 2010, it seems Search Engine Optimization, or SEO, firms experienced a banner year, as the report stated that the most popular form of advertising was search.
This segment represented 46 percent of revenue and it represented an increase of 12 percent from 2009.
With consumers investing a lot more time on the internet, particularly on social media and video networks, other advertising segments experienced significant growth.
Display Advertising, which includes video, saw a 24% jump to $10 Billion, while digital video accounted for 5%, or $1.
4 Billion, of online ad spending in 2010.
The award for fastest growing segment went to sponsorships, which sky rocketed 88 percent to $718 million.
So is the print industry really fading away? It seems that way.
According to Australian billionaire media mogul Kerry Stokes in March 2011, it is a "Sunset Industry" and he expects print to survive in its current form for maybe another 10 to 15 years.
And where does he think the papers should go now? Stokes said the sector was likely to rely heavily on social media in the future, and he is quoted "How we actually transform into what is needed in the future, that's going to be the challenge, and neither technology nor youth are going to wait for us to find out what works.
" And going back to the New York Times, recent numbers this week are placing a strong emphasis on this sunset prediction.
On April 21st, the New York Times reported that quarterly net income drastically fell 57.
6 percent to $5.
4 million, compared with $12.
8 million in the quarter a year ago as the weakness in print advertising continued to plague the newspaper industry.
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