Advertising on print publications repurposed for Apple’s iPad draws a fee up to five times more than buying placement on the same content provider’s website.
While the news doesn’t quite mean the iPad will "save" print publishing, as online advertising is a fraction of what publications receive in print, it is a sign that the iPad could become a major factor in revenue for those in the news business, according to the Associated Press.
The report from Andrew Vanacore said it’s likely that news organizations will hold back free content from their websites in the future, opting instead to provide news to users who subscribe on tablet-style devices like the iPad. And although Apple has already sold 2 million iPads, the market will have to become much larger for it to have a major effect on a news organization’s bottom line.
JPMorgan Chase & Co., which was the exclusive advertiser of the New York Times application for the first 60 days, also revealed that the click-through rate for iPad advertisements is a remarkably high 15 percent. The report noted that the online average for people viewing an advertisement is about one-tenth of a percent.
iPad readers also spend a great deal more time with content. Publisher Conde Nast revealed that the average reader spends 60 minutes with a monthly issue on Apple’s device, compared with the average website visit length of less than 5 minutes per month.
One of the biggest problems with online advertising is the unlimited amount of space available. In a newspaper or magazine, space is finite based on the number of printed pages, adding more value. Online, limitless space makes advertising less valuable. The AP also noted that online ad networks allow advertisers to get placement at discounted rates. But the supply-and-demand issues haven’t yet appeared in the iPad, which has been on the market for just over two months.
Read more: AppleInsider.com
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