Posts Tagged ‘Businessweek’

BusinessWeek's for sale, the industry is surprised. I'm not.

Wednesday, July 15th, 2009

NOTE: I’ve got some new blogging gigs – primarily for businesses that I’m operating and launching as part of Pure Incubation – and I want to make sure that I’m sharing the content that I’m producing on those blogs here (in case you care!) So when I blog elsewhere, I’m going to include pieces of those posts here and link to the full posts. FYI!

Here’s the article…

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Apparently the media industry is “stunned” that BusinessWeek is for sale. Really? Stunned?

Today’s article in B2B Media Business cites the following:

  • - BusinessWeek lost $85 million in 2008
  • - BusinessWeek has already lost $20 million in 2009
  • - BW’s ad pages declined 17.2% in 2008
  • - This year, BW’s ad pages have declined 36.8% compared to the same period last year- This year, BW’s ad pages have declined 36.8% compared to the same period last year
  • - BusinessWeek’s online catalogs sellers of viagra and cialis in the usa ad pages have dropped 69% since their high point in 2000
  • - Print ad revenue has fallen 59% in the same time period

BusinessWeek coverWhy are people stunned that McGraw-Hill would want to offload a business unit that is bleeding so severely? I understand that BusinessWeek’s brand is valuable and important, but most companies – including McGraw-Hill – can’t absorb $80 million in losses year after year.

I suppose that the shock and dismay people feel at the loss of well-established print entities shouldn’t surprise me. Just look at the outrage that people felt at the thought of the Boston Globe possibly closing its doors, even though that publication is on track to lose $85 million this year.

Read the full article on the Sauce Technology blog

Consumers not the cause of Google's slide

Wednesday, February 27th, 2008

Google logoGoogle’s stock price is dropping, and people are freaking out. Yesterday’s stock price drop was in response to a recent report from Comscore indicating that January 2008 showed only flat growth year-over-year versus a 25% increase in Q4. This apparently is the result of lower click-through rates on paid search ads, and people are worried that this means that Google is exposed to a slowdown if there is a recession in the U.S.

The near-panic is somewhat understandable considering that the overall U.S. economy isn’t doing all that great, the tech folks are scared of another bubble, Microsoft is talking about taking over Google, Apple’s stock is dipping, and everyone is looking for someone – anyone – to believe in. Google has been the obvious choice for a long time, and no one wants the tech darling to falter.

But the thing that I take issue with is the notion that this decrease in clicks is a result of consumers clicking less because of a coming recession. These numbers from Hitwise show that there has been no decrease in overall search traffic to shopping sites – meaning that consumers are still clicking.

And if consumers are still clicking on search links, why would they suddenly not be clicking on paid search ads? Could this be because consumers suddenly have become more discerning about what is a “paid” result vs. what is a “organic” result? No way.

My question for Google would be about how much of this decline comes from the dip in clicks on AdSense partner sites. My bet is that the clickthrough rates have dipped significantly on partner pages. Why? Primarily because of the click fraud prevention that Google has been implementing, as well as the “accidental clicking” measures that Google took back in November.

Google click change

Remember, this was the second change that Google made to its ads; the company first changed the paid results on its main search pages in April, a move that many advertisers said led to a decline in the number of clicks, but not in the amount of revenue that they were earning.

And this might just be the bottom line. If there is no growth in the number of clicks, but revenue is growing, Google may have figured out a way to increase ROI for advertisers. Like this Businessweek article says, we’ll have to wait for earnings in April to find out for sure.