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The trend is very clear: the internet is having a big impact on where advertisers spend their dollars.

by Russell Brown, The Listener, September 2006

You'd expect an earthquake to make more noise.

This one didn't, but it happened all right: a seismic shift in the British media industry. The media-planning arm of WPP, the world's second-largest advertising and marketing company, recently predicted that internet advertising would total 14 percent of Britain's total advertising spend by November. The significance of this figure is that it is a greater share than that of all Britain's national newspapers.

We can't expect to see the same sort of shift in New Zealand's advertising market – not yet, anyway. Internet advertising here has only about a third of the share that it does in Britain, and TV advertising hasn't tanked here the way it has in Britain in recent years.

But the trend is very clear, and it will be concentrating the minds of newspaper proprietors. If they spend too much effort protecting their print revenues, they may find themselves without much to protect.

For now, the challenge to the print media industry in New Zealand is focused in one sector: classified ads. Having grabbed a tidy slice of the real estate advertising market since the beginning of the year, Trade Me recently ventured into employment advertising with Trade Me Jobs.

Trade Me has taken advantage of a fractious relationship between the present market leader, Seek.co.nz, and local recruitment agencies, who provided virtually all the listings on the day of the Trade Me Jobs launch.

The significance of the alliance between Trade Me Jobs and the agencies was evident when two internet industry jobs turned up on the new service. The prospective employer? The Telecom-owned Ferrit, a rival that looked to take business away from Trade Me rather than contribute to it.