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Monday, April 21, 2008

New Sources for Online Revenue

With our recent class discussion involving the future revenue of online news outlets, an article on MSNBC.com discusses paid click advertisements on news aggregator Google.com.

According to the article, "Citing data that comScore Inc. released after the market closed on Wednesday, analysts said growth in Google's click-through rate has nearly ground to a halt."

Critics both agree and disagree on the affects this will have on the company's stocks, but what I find interesting is the fact that it might not generate as much revenue as some companies expect. Consequently, these advertisements are proving to be not as popular, hence a lack of revenue.

With the current cuts in the newspaper industry, and its shift to going online, how does the news industry plan on effectively creating consistent revenue? Is the online move really going to benefit the industry? Honestly, I'm not sure it is. Unless other sources of revenue are used, as we discussed in class, online journalism may take a downfall just as print has.

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