Good news for news organizations: U.S. firms are paying to newspapers and magazines for ads in their applications IPAD up to five times what they pay for ads on other sites.
This does not mean that the Apple tablet is the salvation of the newspaper industry, as some expect. Online advertising continues to generate a lower percentage of advertising revenues of the media and remains to be seen whether the advertisements in the printed press rebuild that generated earnings before the recession.
It seems, however, that the IPAD gives the media a new way to get more money from advertisers.
"I think this will revolutionize the industry and redefine the way advertisers communicate with our audience," said Lou Cona, executive vice president of Conde Nast Media Group, which publishes magazines such as Vogue, GQ and Wired.
Anyway, it would have to combine many factors for the IPAD and their imitators become an important source of income.
For starters, the news media applications would have to find ways to make the reader stay longer. Especially if a company wants to charge for an application in journalism, because enough a few taps on the screen to get that article in the IPAD. It is expected that news organizations refrain from publishing some of their material on their websites and offer only free applications tablets.
There are many reasons why the media did not earn much money from online advertising. While newspapers and magazines offer limited advertising space, the digital portals have virtually no limit. Firms that do not want to pay too much you can run ads on digital networks that offer lower prices for the spaces that have not sold.
This dynamic of supply and demand has not reached the IPAD. In applications of IPAD as USA Today, there are a limited amount of advertising space and no advertising networks. The reader can click on a warning from the Courtyard by Marriott in USA Today, with simple movements of a finger reviewing images in the hotel lobby. Another tap on the screen and displays a high-definition video, full of happy guests.
Jason fulminate, director of mobile products Gannett, the parent company of USA Today, said that the newspaper charges the Marriott about $ 50 per thousand samples of the notice. The average cost of a notice of the general portal of USA Today is less than ten dollars, he added. In daily newspapers, the cost of equivalent advertising is $ 103.
Phuc Truong, Mobext U.S. managing director, said the media ask for online advertising from two to four times the normal charge for advertising.
In addition to paying higher rates for ads in IPAD, companies have expressed willingness to increase its investments in certain publications, but is not guaranteed to continue doing so.
One of the reasons for which JPMorgan Chase & Co. decided to sponsor the new application of the New York Times for the first 60 days was the opportunity to promote their credit card Sapphire among the first buyers of the IPAD. Card is aimed at high-income people and it is assumed that users of the IPAD are.
Conde Nast says that an average reader spends 60 minutes per month with IPAD applications. In contrast, the average reader spends 2.1 minutes online per month and 3.8 minutes Vanityfair.com GQ.com, according to comScore. "We want to stay hours, not minutes," said Scott Dadich, creative director of Wired magazine.
Wired magazine is probably the most intensely seeks to exploit the potential of IPAD. Its application allows the reader to enjoy the same advantages of the printed version and also see videos and computer graphics that can be rotated with a slight movement of a finger.
Wired Applying costs $ 4.99 per issue.
On the Web, most of the content is free and the idea is to attract the widest possible audience for advertisers. The publishers do not want to follow the same model with the tablets, but charge for applications can be risky. Many readers may not be willing to pay and reduce the hearing and offered to advertisers.
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