Gambling Ads Helping To Sustain Media Companies
By Warwick Bartlett
Watching TV the other night I couldn’t help but notice the number of adverts for gambling services. This was not only during ad breaks in football matches but adverts for bingo and casino were appearing on the major channels and some of the lesser known Sky channels as well.
With retailers suffering during the recession and consumer products in less demand this new income from gambling companies must be a most welcome contribution for broadcasters.
The switch away from traditional newspaper advertising has been remarkable.
To combat the challenge from online media many newspapers have invested heavily in their own news websites which are predominantly free to access. That is the problem. The moment something is offered free it is considered a right and people baulk when they are asked to pay. The Wall Street Journal and Financial Times have been able to get away with it but others have floundered.
With falling print sales, newspapers have thus moved on to selling advertising online. But the figures are less than impressive. According to the investment newsletter Fat Prophets, US newspapers in 2012 gained $1 in advertising revenues from online for every $16 lost from its print products.
It would seem that the Internet upstarts have been winning market share of the automotive, employment and real estate classifieds spending, while retail advertising dollars have gone to TV, outdoor platforms, Google search and social networking sites.
Such a loss of revenue from traditional sources has had a knock on effect with newsroom employees in the U.S. falling below 40,000 for the first time since 1978, and is 30% below the peak of 2000.
The UK’s Daily Telegraph and Financial Times are still maintaining their broadsheet format but this is against the trend, as more newspapers are going tabloid.
Those calling for restrictions in gambling advertising need to be aware that media companies would be hard pressed during these economic times to find replacement revenue.