Borrell Associates Survey of 2,466 Local Media Web Sites Shows Substantial Growth in Revenue and Profits; Report Says Largest Local Web Sites Are Now Bigger Than the Largest-Grossing Radio Station in Many Markets.PORTSMOUTH, Va. -- Local online advertising swelled to $4.8-billion in 2005, driven mainly by local media companies getting more aggressive with their Web site sales efforts, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. a benchmarking report released today by Borrell Associates Inc., a leading research and consulting firm Noun 1. consulting firm - a firm of experts providing professional advice to an organization for a fee consulting company business firm, firm, house - the members of a business organization that owns or operates one or more establishments; "he worked for a covering the local online advertising industry. Borrell's report, "What Local Media Web Sites Earn: 2006 Survey," details online revenues, expenses and related data for 2,466 local media Web sites. According to its report, some of these sites are generating profit margins of more than 70 percent. "This means $500,000 or more in cash flow for some fairly small media Web sites," said Gordon Borrell, president of Borrell Associates, "and upwards of $3 million to $14 million in cash flow for some of the larger ones." This places the largest local Web sites higher in revenue than the largest-grossing radio stations in many markets. Borrell said Web sites operated by daily newspapers garner the largest share of local online advertising at 41 percent, while out-of-market Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the portals such as Google (Google, Mountain View, CA, www.google.com) The largest search engine on the Web, founded by Larry Page and Sergey Brin, two Stanford University students. In 1996, they developed their "BackRub" search engine, named after its unique page ranking method (explained below). , Yahoo and vertical sites like Monster, Realtor Realtor In the United States a designation used to describe a member of the National Association of Realtors (NAR). Notes: The term "realtor" is a registered trademark and encompasses agents, brokers and associates who are members of a real-estate firm associated with .com and Craigslist capture the second-largest share, 25 percent. "We are even seeing significant growth by the smaller independent sites such as PalmSprings.com or Toledo.com, which seem to be just as hungry as the big media companies but a bit more nimble nim·ble adj. nim·bler, nim·blest 1. Quick, light, or agile in movement or action; deft: nimble fingers. See Synonyms at dexterous. 2. in the marketplace." This is the fourth year Borrell has conducted the revenue benchmarking survey for local media Web operators. This year's survey encompasses Web sites run by 696 daily newspapers, 148 weekly newspapers, 1,154 radio stations, 437 TV stations and 24 independent local sites in the U.S. and Canada. A copy of the full report can be found at http://www.borrellassociates.com, under the "Reports" tab. |
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