Friday, September 5, 2008

Newspaper Advertising Expenditures Continue Falling

The Newspaper Association of America (NAA) today reported Q2 2008 advertising expenditures for newspapers. The results were not good. Total print expenditures were down 16.07% to $8.8 billion from $10.5 B in Q2 2007. Total online expenditures, showing declining growth for the past 5 quarters, shrunk for the first time quarter over quarter from $795 million in Q2 2007 to $776 million in Q2 2008, a growth rate of -2.4 percent. The combined quarter-over-quarter growth rate for newspaper advertising expenditures is now -18.47%.

Newspaper Advertising Trend: Total Print and Total Online 2000 - Q2 2008

Classified advertising expenditures continued showing the greatest loss, down 27% from Q2 2007. Classified advertising has shown the deepest losses for newspapers starting in Q2 2006. Retial and national advertising expenditures were down 9.56% and 13.90%, respectively. The Internet has done a job on classified newspaper advertising with sites like eBay (revenue model: auction) and Craig's List (revenue model: free) having taken a big bite out of this important newspaper advertising category. The undeclared recession of 2007-2008 has also not been kind to advertising expenditures.

Newspaper Advertising Trend: Classified, Retail and National 2000 - Q2 2008

1 comment:

Richard Wakefield said...

A late response.

I believe that the Newspaper Association of America likely made an error in its reporting of 2nd qtr, 2008 online ad expenditures. I maintain a monthly database of newspaper advertising revenue reported by selected public companies. My sample is about 25% of the industry actual rev. as estimated by the Census Bureau in the QSS reports. In fact, the NAA value reported is in the 0th percentile or has virtually no likelihood of occurring given past performance. Maybe it's time to start viewing the NAA numbers more critically.