US Ad expenditures for newspaper websites increased by 21.1 percent to $773 million in the third quarter versus the same period a year ago, according to preliminary estimates from the Newspaper Association of America (NAA).
This is the fourteenth consecutive quarter of double digit growth for online newspaper advertising since the NAA started reporting online ad spending in 2004.
The NAA said that the continued year-over-year gains have demonstrated the importance of newspaper web site advertising, which now accounts for 7.1% of total newspaper ad spending, compared to 5.4% in last year’s third quarter.
John Sturm, NAA President and CEO, said: “Newspaper websites continue to generate substantial revenue by offering advertisers access to the nation’s most desirable group of consumers.
“At the same time, broader economic issues are impacting our industry the same way they are impacting other media – the continued fallout from declines in the housing market clearly affects real estate, recruitment and retail advertising. Newspaper companies continue to take aggressive measures to prepare for the future during a period of economic challenges for the industry.”
Total advertising expenditures at newspaper companies were $10.9 billion for the third quarter of 2007, a 7.4% decrease from the same period a year earlier. Spending for print ads in newspapers totaled $10.1 billion, down 9% year on year.
Classified advertising fell 17% to $3.4 billion. Retail declined 4.9% to $5.1 billion and national was down 2.5% at $1.7 billion.
Within the classified print category in the third quarter, real estate advertising fell 24.4% to $1 billion. Recruitment dropped 19.7% to $882.4 million. Automotive was down 17.7% to $796.6 million. All other classifieds were up 2.7% to $713.3 million.
The NAA had previously reported that total advertising expenditures at US newspaper companies were $11.3 billion for the second quarter of 2007, an 8.6% year on year (see US Newspaper Adspend Declines).
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