According to the article, "One industry executive estimated that pricing on standard banner display ads has fallen 30% to 40% over the past several years, while an ad buyer said the prices on ads sold through automated platforms have dropped by as much as 70% over the past five years."
|There is a clear and steady increase in online ad sales, but the market|
is so crowded the revenues for each individual is falling
70 percent is a massive drop and this speaks volumes about the future of online journalism. News providers will need to find ways of generating revenue aside from the ads if they want to continue to operate.
Jim VandeHei, the president and CEO of Politico and Capital New York suggests in the article that, "most investors seeking big returns would be better off betting their money on other sectors, like health care or energy, unless they are 'passionate about journalism.'"
For journalism to survive, it will have to evolve past the old model of relying on ads to pay for content. What the new model will look like remains to be seen, but the examples of Vice and Buzzfeed, both of which are mentioned in the article show that it can be done.