About a year and a half ago TheMarker, an Israeli economic journal, published a short article of mine reacting to Google’s entrance to the Israeli market. One of the claims i made there was about the online advertisement market being too small to suggest a significant impact on the overall advertisement industry in Israel. Back then, the online advertisement accounted for only 5-7% of the entire advertisement industry. I will have to check this number again in light of the recent announcement of NY Times that they are dropping their paid premium services based on a calculation that keeping the content open will generate more advertisement-based income (thanks Erik for pointing that out). Although Vivian Schiller, the Web site’s Vice President and General Manager, refused to expose the exact estimations, giving up US $10 million a year generated through the subscribed services is an interesting indicator. Of course I am still missing many numbers, and $10 million is not such a big figure in the advertising industry standards, but I can’t help but wondering, if i haven’t been too pessimistic about that in the first place.
Maybe i was wrong