New York Times digital ad revenue now makes up a third of overall ad income
The New York Times has revealed that it now generates a third of its advertising revenue from digital which helped boost its second quarter profits higher than analysts had predicted.
The publisher’s digital ad revenue contributed 32.5 per cent to the total ad revenue at the company, up from 26.9 per cent last year. The success helped the company generate $48.3m and represents a 14.2 per cent increase in digital.
Paying digital-only subscribers reached 990,000, representing a 19 per cent increase from the same period last year and contributing to a 0.9 per cent revenue increase on circulation.
Unsurprisingly however its print ad revenue fell by 12.8 per cent which overwhelmed the digital gains resulting in an overall advertising drop of 5.5 per cent.
The digital growth will be of comfort to the publisher which saw its revenue down 1.5 per cent to $382.9m, short of the $383.3m average projected by Bloomberg.
In the second quarter earnings report chief executive officer, Mark Thompson, said expense management remained “a top priority” as it heads into the second half of 2015, adding that its “emphasis on digital investment and execution is also more intense than ever".
Print advertising remains a large part of revenue income for the New York Times and in an effort to bolster print advertising the publisher introduced a redesigned New York Times Magazine in February and a monthly men's style section in April.