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Tuesday, 19 March 2013 14:47

Bad news for the news business

Written by  Dan Mitchell, CNNFortune
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FORTUNE -- The Pew Project for Excellence in Journalism's report, "The State of the News Media 2013" contains plenty of grim news about an industry that appears in some respects to be falling apart at the seams (along with a few rays of hope). But it also offers a few notable tidbits about the state of the online-advertising business:

Digital advertising continues to eat into the total share of advertising in the U.S. In 2012, digital ads represented 23% of all ad dollars spent, up from 20% in 2011. Digital ads generated $37.3 billion, a rise of 17% from 2011.

Mobile advertising, though it continues to be a challenge due to low prices, grew by 80% in 2012, to $2.6 billion.

The market for mobile display ads is growing fast and is expected to surpass search ads in terms of revenue by 2016. Six companies dominate the mobile-display market: Pandora (P), Google (GOOG), Millenial Media, Apple (AAPL), Facebook (FB), and Twitter.

Facebook ran its first mobile-only display ad only in August of 2012, but those ads generated nearly a quarter of its revenues in the fourth quarter of 2012.

Read more at http://tech.fortune.cnn.com/2013/03/19/dismal-report-on-news-industry-offers-insights-on-digital-ads/?iid=HP_River

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