May 06 2008
LATimes.com Will Generate $25 Million
There are a variety of people who believe building a business around a geo domain is limiting the global concept of the internet. The little piece of the local pie is not appealing to these individuals. The great thing about the domain industry is that it is a multifaceted industry full of revenue streams with those who have the right game plan.
The LATimes.com reported that they will bring in close to $25 million in online display revenue this year. They have accomplished this success by delivering to a local market for the most part. Based on these results, owning a piece of the pie is not so bad and can be very rewarding. Of course, the LA Times is a well established media outlet and much of this revenue has been earned based on this important fact. However, these results can be duplicated by owning a great geo domain and a solid development plan.
The article is a must read and delivers good information.
LATimes.com generated $6 million in display ad dollars in 2005, and is on track to bring in closer to $25 million in online display revenue this year, according to Rob Barrett, SVP interactive media and GM at LATimes.com. He expects the Web site to represent 20 percent of LA Times cash flow by 2011, and appealing to local audiences by building content representative of LA’s local flavor is part of the path towards getting there.
“We’re trying to create the best targeting machine to the Los Angeles DMA,” said Barrett, speaking at this week’s Kelsey Group local media conference in Seattle. Recognizing LA and California are identified with certain topics such as environmentalism, Hollywood, car culture, and immigration, they are central to his content redevelopment scheme. That entails a locally-focused travel section redesign and a behind-the-scenes film site set to launch soon called HollywoodBacklot.com.
Wow,
From 6 million to 25 million in 3 years, and businesses are now just realizing that they need to advertise locally online and are now putting aside an ad budget for this.
Where do you think they will be in another 3 years, 50 Million?
Great post - very nice - positive vision + hard mental work = Success
I like your style
I agree, Steve. You do a great job of pushing the GEO movement and I have bought several GEO’s especially dealing with products and services that are not likely to be provided outside of a specific locale. I mean who’s going to hire a contractor from Timbuktu to do work in L.A., or order a birthday cake from a Bangkok bakery when the party’s in Pennsylvania. Keep up the good work.
This is an incredible ad trend. I’ve been watching California for some time and have a special interest in what happens with business and internet there. Going from 6 million to 25 in annual online revenue speaks for itself.
This is a tired cliche by now, but everything continues to migrate to the internet. The 25 million in quoted revenue (while impressive) will be considered modest in several years. Wait till local hits its stride and internet media/TV fully move to every electronic device in your car/home/phone.
LATimes had better position themselves to play the internet. Literally, it’s either that or die. Hard copy newspapers are yesterday’s 8-track.
May issue of Portfolio magazine on page 52 says WashingtonPost.com hopes to top $100 million annually (they got started early) and even latecomer Philly.com hopes to top $25 million this year.