Only 27% of print publishers see online advertising as a means to increase revenue

In April 2003, Gartner conducted a phone survey of 423 U.S.-based publishers regarding their key business issues in light of the growing trend of digital distribution.

According to the survey, only 27 percent of publishers foresee any increase in online advertising revenue in the next five years. Independent publishers (single publication owners) are the most optimistic about the future of online advertising with 25 percent seeing an increase in online advertising revenue, while only 16 percent of syndicates (owners of multiple print publications) see an increase.

"There is an uncertainty in the print marketplace as businesses and new product strategists plan for their immediate and long-term futures," said Allen Weiner, research director of media industry research at Gartner. "In many cases, publishing companies face a directional disconnect where top-level management, newsroom/editorial personnel, IT professionals and new media staff each have their own vision for the future. Too many print companies lack a process for blending these visions into a cohesive product plan and development road map."

Gartner analysts recommend that publishers create a framework to ensure that there aren't any missed opportunities. Currently, the majority of publishers lack registration systems, which are required to support targeted advertising and personalised content. Fewer that half of publishing conglomerates and syndicates bundle print and online together, thereby losing cross-selling and marketing opportunities. Fewer than half of all publishing companies employ a unified strategy for print and online ad sales, which also leads to missed opportunities and a duplication of effort.

"Print publishers are uncertain about their digital future because the sector lacks a clear understanding of future print and digital synergies," said Weiner. "The fundamental issue for magazines and newspaper organisations is to convert the threat of online cannibalisation into a business opportunity that meshes with current strengths and future strategies."