It will be 30 years before online contributes half of newspapers’ advertising revenue, according to a Merrill Lynch analyst, Lauren Fine. That is the simple bit from a report at Paid Content.
Fine says online now contributes 6-7% of ad revenue and she makes an assumption of double-digit growth for the next six years followed by 5% a year. But margins for online advertising are double those for print.
Predictions of this sort never turn out to be accurate, but business planning has to have some numbers to put into the spread sheets and these look reasonable.