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The Players are Changing in the Advertising Revenue Game

I attended a marketing workshop last week that included a video presentation about how advertising is drastically changing. Most people in the marketing industry already know that print ad revenue has significantly declined, but some don't realize that this decline has affected even large publications. There was a time when publications like Business Week, Life magazine and the New York Times ruled the advertising revenue industry. But unfortunately today that is not the case. The fact is there really is not any publication today that is generating high percentages of print advertising revenue. The reason for this is because many advertisers have started transferring their advertisements to online publications. This has included industry websites, search engines and blogs. The creation of advanced technology has literally transformed the way many companies advertise today. Some of the things I learned in this workshop is that many companies are having a hard time adapting to this new advertising format. In most cases their in-house advertising staff consist of individuals who have years of experience creating print ads and negotiating print advertising rates. Now these same individuals are having to learn how to create ads in a digital format, and they are also having to learn how to negotiate ad prices with bloggers instead of magazine publishers. This may be surprising to some people, but many of today's major companies are advertising on small online magazine websites and independent blogs. The reason? Many of these online sites are generating between ten thousand to two hundred thousand visitors per month. From an advertiser's perspective, this gives them a chance to promote their products and services to thousands of potential new customers. This is also a winning situation for online magazines and blog writers, because this provides them an opportunity to generate a new source of income. Depending on the site and the level of online traffic, this additional income can range from five thousand to over fifty thousand dollars per year. In my opinion that's not bad money at all.

Another topic that was covered in this workshop was how to create a memorable eye catching ad. Unlike some print advertisements, online ads have a lot more competition because they are on the internet. For an online ad to generate interest, it must be content specific and very visual. In addition to these two features, an online ad must also be very strategically placed. This means that the advertiser has to be very strategic where they place their ads. For this reason, many online bloggers and writers are creating “content specific” sites. However, in order for these sites to attract advertisers, they must be consistently updated and promoted. This is why attracting advertising revenue these days is almost a full time job.

Along with the responsibility of creating quality content, online magazine editors and bloggers also have to make sure that their online traffic numbers steadily increase and stay consistent. This is very important, because having consistent online traffic will make it much easier for them to keep generating ad revenue year after year.  

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