Adspend On US Newspaper Websites Increases

Advertising on newspaper web sites made up 7.1% of total newspaper ad spending in the first quarter compared with 5.5% for the same period a year ago.

John F. Sturm, NAA president and CEO, said: “The percentage of ad spending generated by newspaper Web sites continues to grow as advertisers realize the value of the medium’s Web audience – a group of consumers who have higher household incomes and shop online more frequently than other Internet users.

“We expect advertising on newspaper web sites to continue to contribute to the industry’s overall revenue stream as newspapers provide innovative content and up-to-the-minute news and information our audience demands.”

Advertising expenditures at newspapers and their web sites totaled $10.6 billion for the first quarter of 2007, a 4.8% decrease from the same period a year earlier. Spending for print ads in newspapers totaled $9.8 billion, down 6.4% versus the same period a year earlier, said the NAA.

Among the major print components in the first quarter, classified advertising fell 13.2% to $3.4 billion. Retail declined 2.2% to $4.8 billion and national was down 2.8% at $1.7 billion.

Within the classified print category in the first quarter, real estate advertising fell 14.2% to $953 million. Recruitment dropped 14.3% to $975.3 million. Automotive was down 20.1% to $751.3 million. All other classifieds were down 0.5% to $699.3 million.

Sturm added: “While the classified category demonstrates the impact of how consumers and advertisers use the various media options available today, newspapers continue to make aggressive moves to redefine classified advertising through new online partnerships and other approaches that will position them for the future.”