CHICAGO – AOL Inc, made the announcement on Monday it will buy the Huffington Post for $315 million.
The deal has many saying it represents a bold bet on the future of online news.
A digital analyst Ken Doctor says online news is going to be more popular than newspapers and broadcast within the next two years.
“We’re seeing a maturation of digital news,” said Doctor. “While newspaper think they can recoup some subscription money this year through pay walls, most of the money in the digital medium is in advertising.”
Doctor said that what is important about news is it has the currency to bring readers back every day, especially news junkies.
“With that daily readership you get the most data about that audience so you can do target advertising and digital advertising is the most targetable of all media.”
“What’s important about news,” Doctor continued, “is that it has the currency to bring readers back every day, especially news junkies, and with that daily readership you get the most data about that audience so you can do targeted advertising. And digital advertising is the most targetable of all media.”
Sources: Wall Street Journal
Watch Associated Press news report about the AOL acquisition.
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