By: E&P Staff
Spending on online recruitment advertising is expected to surpass all other media, including newspapers, by the end of this year, according to a new report from Borrell Associates.
Advertisers are forecasted to spend $5.9 billion in online help wanted ads compared with $5.4 billion in newspaper ads.
The 2007 outlook on online recruitment advertising report also found that online help wanted advertising is expected to grow to $10 billion by 2011.
The news isn?t totally bleak for newspapers: ?If newspaper Web sites were counted as a single entity, they would control the largest single share? of online recruitment revenue at 18.6% or $1.1 billion, according to the report.
It?s the metros, however, that are the most at risk. Borrell anticipates the big city dailies will bleed 20% of their annual recruitment revenue from 2006 through 2011. Suburban and community newspapers will gain 25% in revenue by 2011, the report found. Smaller newspapers will fare better only because of their lower price points (compared to the national job boards) and more targeted capabilities.
Borrell raises an eyebrow over the recent newspaper alliances formed with Monster and HotJobs since newspapers could be giving up too much. ?Will these deals be worth it for newspapers, or are they merely building up the brand of a competitor who will jettison them in the future?? Borrell asks.
?In the end, the newspapers that fled to Monster or HotJobs would up doing exactly what they shouldn?t: Abandoning a billion-dollar investment in their own product and building a brand they have spend years trying unsuccessfully to degrade,? the report concluded.