Final answer:
The question pertains to the advertising budget of 'We Sell CDs' and the decision about spending on traditional newspaper advertising within a budget of $3000, considering the decline in print media's popularity and revenue.
Step-by-step explanation:
The student is asking about a Budgeted advertising expense, specifically planning to spend a maximum of $3000 to purchase ads in local newspapers for the website 'We Sell CDs'. When considering the investment in print media advertising, it's important to note the shifting landscape of advertising and reader habits. The twenty-first century has seen a decline in newspaper subscriptions and advertising revenue, particularly for print media.
Print media revenue fell from $46 billion in 2012 to $20.5 billion in 2020, reflecting a substantial drop in revenue generated from ads. Despite this, newspapers are adapting by bolstering their online presence and creating digital pay plans that have helped stabilize circulation revenues around $10 billion. This strategy is, in part, a response to the rise of free news sources and blogs which contribute to the challenge of selling online subscription access due to the abundance of available free material.
With the increasing relevance of mobile and online advertising, newspapers have seen a downward shift in revenue from traditional sources like classified ads, automotive, employment, and real estate listings, as these have moved to platforms like Craigslist and specialized job search sites.
The impact of new media platforms further complicates the future revenue streams for print media, as younger audiences often do not develop the habit of reading physical newspapers. Despite these challenges, digital ad revenues for news magazines are on the rise, though not enough to completely offset the losses in print ad revenue. This trend suggests that businesses like 'We Sell CDs' should consider the potentially diminishing return on investment when opting for traditional newspaper advertising in their marketing strategy.