SOURCE: eMarketer

August 18, 2005 08:00 ET

Online Newspaper Publishers' Revenues to Reach $1.4 Billion in 2005

New eMarketer Report Outlines Explosive Growth in Online Newspaper Sector

NEW YORK, NY -- (MARKET WIRE) -- August 18, 2005 -- Revenues for online newspapers grew faster than the overall online ad market in 2004 and are on a pace to do it again this year, according to a new report from eMarketer, Online Publishing, released today.

Online newspaper publishers saw revenues zoom 38% last year, and 2005 first-half performance signals similar gains this year.

eMarketer's Online Publishing report describes several key drivers behind publishers' online gains. Internet users are increasing their consumption of online content, and in particular, online news. Meanwhile, advertisers are beginning to turn their attention to online channels. With big advertisers cautiously shifting their budgets online, newspaper publishers provide a "safer" environment for many advertisers, with trusted, known parent companies and predictable content.

"The online publishing sector is positioned to grow strongly through this year and into next," says Ezra Palmer, eMarketer's editorial director and the report's author. "Consumption of online news is increasing. Ad spending still significantly underplays the online channel, and brand advertising has yet to truly make itself felt. Meanwhile, the heavy costs of establishing an online presence are in the past."

eMarketer's Online Publishing Report addresses key questions like:

--  Who is reading online newspapers?
--  Who are the biggest players in online publishing?
--  Who is logging the fastest growth?
--  What will drive growth for the online newspaper industry going
    forward?
--  How do newspapers compare with verticals and other online publishers?
--  And much more...
    
For more information on eMarketer's Online Publishing Report, visit eMarketer at www.emarketer.com.

About eMarketer

eMarketer is "the First Place to Look" for market research information related to e-business, online marketing and emerging technologies. eMarketer aggregates and analyzes e-business research from over 1,700 sources and brings it together in one place. This research is presented in analyst reports and the "eStat Database" -- the most comprehensive compilation of up-to-date e-business and online marketing statistics in the world. For more information, visit www.emarketer.com.

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