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3.1.1. Comparing advertising investments in the press and Internet

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Since the Internet emerged in Switzerland, its advertising revenues have only grown. Although for now they remain very small in comparison to other media it could be very short until it gets the biggest parts of the investments. Here is a look at the net advertising revenues in millions CHF since 2005 in Switzerland:

Year to year net advertising revenues in Switzerland from 2005 to 2009
(19)

Tableau 2 Analyzing the influence of new media on newspapers businesses in Switzerland, the role of the government and the future of both media
If only the numbers are taken into consideration the total amount of the Internet revenues may seem derisory. But the difference of evolution between the two is striking. In 2005, the Internet revenues were only 1.6% of the newspapers revenues. Four years later this number has grown to 6.2%. Newspapers advertising revenues decreased almost 17% from 2005 to 2009 and in comparison, even with the bad economical state the Internet advertising revenues have enjoyed a raise of 230% within the same amount of time. Clearly the two businesses are going in two different directions lately.

The numbers of the international media mix are even more eloquent. In 2009 10% of the total amount of money spent in advertising was on the Internet. The graphic below shows it:

Evolution of the world advertising spending percentages by media
(20)

Figure 9 Analyzing the influence of new media on newspapers businesses in Switzerland, the role of the government and the future of both media
In Switzerland that number is only 2.3%. This indicates that the future is brighter for the Internet than any other media on the market right now. This tendency is explained by the fact that advertising on the Internet is much cheaper than on the traditional press and it is much easier to target your public very precisely. For instance websites like facebook.com use your personal interests so the advertisers can reach only certain kinds of persons.

To sum up the tendency for the advertising is to shift from newspapers (and other media) to the online form. The field of classified ads has been hurt particularly badly in Switzerland. Half of the classified ads that were on newspapers have now shifted to the Internet. Overall the numbers are not as noticeably negative in Switzerland as in other countries yet. But that does not change the fact that the prediction is looking up for online advertising. The prediction is that soon there will be more spending for advertising on the Internet than in the traditional press.

19 http://www.statistiqueenpublicite.ch/index.php?pid=47
20 http://www.journaldunet.com/cc/06_publicite/epub_marche_mde.shtml

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