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Featured stories:

Hollywood's Big-Money YouTube Hit Factory

It’s perhaps inevitable that Hollywood eventually turned its tool kit to YouTube. The platform’s net global advertising revenue continues to grow, from $1.2 billion in 2012 to a projected $3.4 billion this year, according to estimates from EMarketer. Every month, 1 billion people around the planet go to YouTube, where they collectively consume some 6 billion hours of video. Every minute, 100 more hours of programming are added to the platform.

The belief at MCNs is that as more brands understand how young people consume content, ad budgets will shift from TV to digital-video advertising. That migration has yet to take place. In 2013 the TV ad market in the U.S. hit $66.6 billion, according to EMarketer, vs. $4.2 billion in digital-video ads. Not only does TV remain a bigger market, but it also continues to add more dollars year-over-year. From 2011 to 2013, TV advertising grew by almost $6 billion, compared with a $2.2 billion increase in digital-video advertising, according to EMarketer estimates. “Digital video remains a supplement to TV,” says analyst [David] Hallerman. “That part is not shifting.”

Gannett’s print arm will fend for itself

Even though digital ad spending for newspapers is expected to increase 4.3 percent this year to $3.64 billion, traditional print newspaper ad spending is expected to drop 4 percent to $16.73 billion. That brings the total ad spending down 2.6 percent from last year, according to eMarketer.

The decline of newspapers is intimately tied to why the broadcast and digital side of Gannett will buy Cars.com. Auto advertising used to be the hand that fed newspapers. Now that hand is feeding someone else.

“Print media’s lost billions in ad revenue in the last decade, and a large part of that is from auto dealerships who have shifted spending from print classifieds over to digital,” says Mike Hudson, an analyst with eMarketer.

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