Will Amazon’s Same-Day Delivery Model Hurt Newspapers?

In Nieman Journalism Lab blog post, Ken Doctor explores the possible effects of Amazon’s shift into same-day delivery on newspaper advertising revenues:

Here’s what most hurts most about the new Amazon threat: It aims directly at the one category of newspaper advertising that has fared the best, retail.

Classifieds has decimated by interactive databases. National has migrated strongly digital. Retail, which made up of just 47 percent of newspaper ad revenues 10 years ago, is now up to 57 percent of newspaper totals. Now that advertising, albeit in just a few markets initially, will have to compete with Amazon-forced marketplace change.

Doctor also considers the implications of the move for Google, cityscapes and shopping centers, and employment.

(HT: Marginal Revolution)

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  1. Saj says:

    Amazon’s “shift” into same-day delivery that the media is running with doesn’t exist! From Amazon’s conference call last week:

    “In terms of delivery speed to customers, we are certainly trying to get geographically, always trying to get closer to customers, that’s something that’s not new, it’s something we have been doing for some time. But in terms of same day, we don’t really see a way to do same day delivery on a broad scale economically. But again we will continue to work on behalf of customers to try to figure out a way to serve them even better by getting product faster but in terms of same day, we don’t see a way to do that on a broad scale economically.”

    It’s amazing how an idea can gain traction and spread through the media without requiring a basis in fact or feasibility.

    Source: http://seekingalpha.com/article/754571-amazon-com-s-management-discusses-q2-2012-results-earnings-call-transcript?part=single

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