The digital picture is worsening, however, as executives see softer demand for display ads.
News Corp.'s digital properties were a bright spot in an otherwise gloomy fiscal Q1. During the most recent quarter, the company's net income fell 30 percent while Fox Interactive Media turned in revenue of $220 million, a 17 percent increase.
But the digital horizon is now clouding up too, as executives admit weak demand for display ads has begun to take a toll on MySpace and other sites.
"It's clear from everybody else that there is a lot of softening in the display advertising marketplace and we are beginning to feel some of that," said President and COO Peter Chernin, according to a transcript on SeekingAlpha.
FIM's results last quarter were helped by a 16 percent lift in display ad sales and a 10 percent increase in search revenue, according to CFO Dave DeVoe. During the quarter MySpace rolled out two important initiatives, MySpace Music and MyAds. The latter is a self-serve ad buying system geared toward bands and small businesses.
Meanwhile, Chairman and CEO Rupert Murdoch said WSJ.com brought in more than $100 million in advertising, compared with $100 million in subscriptions. He hailed the site's subscription model, which he at one time considered scrapping: "The one Web site that people charge for, people are very happy to pay for."
Following the earnings release, News Corp. lowered its overall guidance. Whereas in August it said fiscal 2009 profits would increase 4 to 6 percent, it now believes they will decline by a percentage in the "low-to-mid teens" from the $5.13 billion in net income the firm reported in fiscal 2008.
On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!
Until March 2012, Zach Rodgers was managing editor of ClickZ's award-winning coverage of news and trends in digital marketing. He reported on the rise of web companies, data markets, ad technologies, and government Internet policy, among other subjects.
Hong Kong, May 5-6, 2015
Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.
Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.
May 6, 2015
12:00pm ET/9:00am PT