The Value of Traditional Media Websites

MediaBuyerPlanner.com presents an article on which media has the most valuable websites. This summer I did a study of our local media websites and the numbers showed that our local newspaper receives more unique visitors than any other site for Fort Wayne. Of course, one reason, is the domain name, FortWayne.com.

Traditional Media has reader, viewers and listeners which they can reach to promote their websites.

Radio Website Valuations Grow as Newspapers’ Shrink

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Radio, along with local television and pure-play websites, is poised to post the largest gains of all local media sites.

Currently, U.S. newspaper websites are the most lucrative of local media sites, with uppermost valuations reaching between $300 million and $450 million for the largest newspaper sites, according to a study by BIA Financial Network and Borrell Associates. The value of top local TV sites is between $30 million and $40 million, while top local radio sites sit at between $15 million and $20 million.

But as newspapers’ online growth stagnates due to reliance on classified and display ads and shrinking real estate and automotive business, radio, local TV and pure-play sites will take up the slack, with strong revenue gains coming from a growing demand for rich media and video advertising.

Strong growth is not a given, however, the report warns. In order to live up to growth predictions, local radio, TV and pure-play sites must adapt to “the new demands in the interactive advertising arena, providing rich media and digital video products that represent the fastest-growing revenue opportunities,” the report states.

In 2008, the oldest newspaper, radio, TV and “city.com” websites turned 14 years old, evolving from interesting experiments to “financial saviors” for their parent organizations, the report points out. “Obviously, there are fundamental changes taking place in the value of media properties, with the value of their websites becoming more meaningful as a percent of total value,” said Mark Fratrik, vp of BIAfn. “Given their growth potential, the value multiples of media websites may be 2 to 4 times that of the core business.”

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