Mittwoch, November 12, 2008

Nick Denton Recipe For Web (and other) Publishers

He suggests planning with a decline of up to 40% in advertising spending during this cycle and/or accepting to go into extinction, independently whether you are in TV, Newspaper, Magazine or on the Web.

Nick draws this picture,

if you don't plan for the worst, he suggests, you are represented by the read line. If you het your act together now, you might be lucky and go along the green line.

His main argument derived from a regression analysis by Morgan Stanley that correlates advertising revenue trends to GDP trends, and shows that for every 1% decline in output growth, the rate of advertising growth falls by 3%.

See what Nick suggests you, to save your business.

Btw., I think that his advice comes from his puristic model of advertising on Gawker - don't shoot yourself, but weight his arguments!