News Flash – a recent report by private equity firm Veronis Suhler Stevenson found that communications spending increased 6.8% in 2006 to a record $885.2 billion, outpacing GDP growth for the fourth time in five years. 

Even more interesting, as summarized in InformationWeek, the report predicts that if current trends continue, Internet advertising is expected to pass up newspaper as the largest advertising medium by 2011.

PilmerPR has shared opinions on new media versus traditional media.  And while I don’t think traditional media will be replaced, as PR professionals we have to step up and take advantage of the power and importance new media has today.  PilmerPR is helping clients take advantage of new media opportunities to reach their target audiences, such as blogs, online publications, and social networking sites.

For instance, Seastone is joining the blogging world by commenting on blogs with relevant topics (Seastone manufactures innovative gift card packaging) and seeking out unique blog mentions of the company.

Regarding the report, James Rutherford, EVP and Managing Director at Veronis Suhler Stevenson, said, “We expect these shifts to continue over the next five years, as time and place shifting accelerate while consumers and businesses utilize more digital media alternatives, strengthening the new media pull model at the expense of the traditional media push model.”

So what is the best strategy?  A little push and a little pull.  Go after new media, but don’t forget traditional media for a comprehensive PR campaign.

John Diaz, business editor at the San Francisco Chronicle, recently spoke with a group of PR professionals, including me. While most experts are a bit gloomy about the future of print publications as they fight it out with more nimble Internet publications, John is optimistic about the future of newspapers. He did admit, much evidence indicates the decline of the “world as we knew it”.  John quoted stats indicating a 2.6 percent decline in newspaper circulation industry wide in just the past six months. Advertising is falling and now may be purchased on the once sacred front page. The San Franciso Chronicle itself is preparing to layoff 100 workers. http://francesdinkelspiel.blogspot.com/   

Opinion pagers are at the biggest risk of getting the axe as the advent of blogs and online instant media offers no shortage of opinion and the conversation is no longer just one way, but two-way with readers demanding to talk back. 

There is however room for optimism for print media as they retain some important advantages over online: 

• Investigative reporting

• Getting out of the basement and actually talking to people

• Discipline of content

• Credibility

• Trusted source

The newspaper’s role is changing as readers want to talk back – demanding dialog.  Online readers require quick response, no longer satisfied reading the newspaper’s response in tomorrow’s edition. John thinks newspapers will successfully navigate revolutionary changes and will survive as a “trusted source.” 

John’s paper has adapted to using blogs and other online resources for story ideas and sources and public feedback.  http://www.sfgate.com/community/blogs/