Blog lite day: Sorry, but I’m slammed today. However, I wanted to point to David Carr’s story in the NYT about David Carey’s breakfast schedule (reminds me of a breakfast I had with him three years ago)…and how the advertising rebound hasn’t reached magazines yet, except for some magazines. In another part of the Times, perhaps a more significant article appears, one about the advertising revenue stream (in and out) revealed in Google’s IPO filings.
In the first quarter, Google paid $252 million to other companies that display its ads, 76 percent of the total revenue from such ads. In some cases, it disclosed that it pays more than 100 percent of its revenue to some sites because it had agreed to guarantee minimum revenues that its ad sales did not cover. In the first quarter, those excess payments totaled $9 million.
In the fog of coverage of the Google IPO, it may be lost that much of this revenue is going to the online properties of “traditional” publishers: A quarter of a billion dollars in the first quarter alone, leaving the coffers of Google and entering the coffers of traditional publishers like the NY Times. Something to think about.