Major Internet Hubs See Lesser Influence

MAJOR INTERNET HUBS SEE LESSER INFLUENCE
[SOURCE: Associated Press, AUTHOR: Anick Jesdanun]
The recent rush by major Internet portals to buy advertising companies and extend their sales networks is a sign that the business of being a one-stop shop for information and entertainment isn't what it used to be. Gone are the days of emphasizing ways to attract and keep visitors - the way television networks long have operated - by creating destinations with anything people might need for work, leisure or companionship. Instead, those companies are now more aggressively trying to follow Web surfers elsewhere - and bring lucrative advertising to them. As people increasingly turn to blogs, social-networking sites and other sources of user-generated media, Google Inc., Yahoo Inc., Microsoft Corp. and Time Warner Inc.'s AOL have spent more than $10 billion collectively this year to acquire companies and technologies that help extend their online advertising networks. So instead of relying solely on being portals for consumers, the major companies are creating one-stop shops for advertisers, who are increasingly wanting to buy ads centrally and place them where the eyeballs are. The networks take care of feeding the ads to smaller sites.
http://hosted.ap.org/dynamic/stories/D/DECLINING_PORTALS?SITE=1010WINS&S...

-- See also --
* U.S. Online Ad Spending Topped $5 Billion in Second Quarter
[SOURCE: Bloomberg 10/4, AUTHOR: Vivek Shankar]
U.S. online advertising spending topped $5 billion in the second quarter, a record for a three- month period, signaling that more advertisers are abandoning newspapers and television. Companies boosted expenditures 25 percent to $5.1 billion from a year earlier, the Interactive Advertising Bureau and PricewaterhouseCoopers LLP reported. For the first half, spending rose to about $10 billion, also a record. Spending on network television spots fell 3.6 percent to $11.8 billion in the first half, while newspaper ads declined 5.8 percent to $12.9 billion. Radio ad spending fell 2.7 percent to $5.14 billion.
http://www.bloomberg.com/apps/news?pid=20601087&sid=au1nNO6kgLR8