The High Price Of Online Content

Media Post: Led by a surge in entertainment spending, U.S. consumers shelled out $987 million for online content during the first half of this year, marking a 16 percent increase from the first half of 2004, according to a report issued Monday by the Online Publishers Association.
Spending at entertainment and lifestyle soared by about 45 percent to $265 million in the first half of this year, from $183 million in the first six months of 2004. Almost half of the total entertainment/lifestyle spending–$115 million–was from single-purchase sales, such as digital music.
Other categories showing large gains were research sites, which surged by 39 percent to $73 million; games, which grew by 23 percent to $54 million; personal growth, which jumped 19 percent to $58 million; and personals and online dating sites, which grew by 8 percent to $245 million.
Still, the vast majority of Web surfers–around 89 percent–didn’t pay for any content as of this June.

About David Burn

I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. Today—after working for seven agencies in five states—I am now head of brand strategy and creative direction at Bonehook in Portland, Oregon.