Total advertising expenditures at US newspaper companies were $11.3 billion for the second quarter of 2007, an 8.6% decrease from the same period a year earlier, according to new figures from the Newspaper Advertising Association (NAA).
Spending for print ads in newspapers totaled $10.5 billion, down 10.2% versus the same period a year earlier.
Advertising expenditures for newspaper web sites increased by 19.3% to $796 million in the second quarter versus the same period a year ago.
The increase reflects the thirteenth consecutive quarter of double digit growth for online newspaper advertising since NAA started reporting online ad spending in 2004. Newspaper website advertising now accounts for 7% of total newspaper ad spending, compared to 5.4% in last year’s second quarter.
“Newspaper websites continue to have a positive impact on the industry’s revenue stream during a time of transition,” said NAA president and CEO John Sturm. “As newspapers transform themselves into multimedia platforms offering a diverse portfolio of print and digital products, publishers continue to deliver the award-winning, innovative content that makes newspapers the most trusted source of news and information. Advertisers know that newspaper websites are ideal for reaching online users with the most attractive demographics.”
“Cyclical swings in the US economy, as well as structural changes in the businesses of major advertisers continue to affect print advertising revenue,” Sturm said. “Yet, newspaper companies are continuing to take aggressive measures to prepare for the future as they contend with a challenging economic environment that is having an impact not only on newspaper advertising, but revenue for other media as well.”
Among the major print components in the second quarter, classified advertising fell 16.4% to $3.4 billion. Retail declined 6.4% to $5.2 billion and national was down 7.9%, coming in at $1.8 billion.
Within the classified print category in the second quarter, real estate advertising fell 20.7% to $966.8 million. Recruitment dropped 18.5% to $995.4 million. Automotive was down 19.3% to $756.3 million. All other classifieds were down 1.8% to $716.1 million.
In separate research, carried out by Nielsen//NetRatings for the NAA, it was revealed that more than 59 million Americans (37.3% of all active US internet users) visited newspaper websites on average during the second quarter of 2007 (see Over 59 Million Americans Visited Newspaper Websites In Q2).
A recent report from the World Association of Newspapers said that global newspaper sales were up 2.3% in 2006, and had increased 9.48% over the past five years (see Global Newspaper Circulations Show Rise).
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