Posts Tagged ‘Newspaper Association of America’

Print continues to bleed newspapers

Friday, June 3rd, 2011

Newspaper ad revenue continues its slide in first quarter numbers released this week showing a drop of 9.48 percent in print revenue that struggles up to an overall fall of 7 percent when it’s levened by gains in online.

Revenues from online sales increased 10.6 percent to $807.9 million, according to Newspaper Association of America numbers, but even that was down from a 14 percent gain in the final quarter of 2010.

This quarter’s $4.7 billion in print revenue is off 55 percent from the first quarter of 2006, making it the 20th straight quarter of year-over-year print revenue declines.

Alan D. Mutter of Reflections of a Newsosaur called the news “an unexpectedly sharp decline” and said “newspapers now appear to be entering the sixth year of an unprecedented collapse.”

Eric Sass at Media Daily News said then numbers “suggest that newspaper print ad revenues are locked into a permanent, long-term decline.”

Revenue from online advertising represented a 14.5 percent share of total newspaper ad dollars in the first quarter of the year, an all-time high.

On the print side, national ads dropped 11 percent, retail declined 9.5 percent, and classifieds slid 8.15 percent.

Newspaper ads still get most action, survey finds

Tuesday, April 19th, 2011

Newspaper advertising is still where people turn to plan, shop and make buying decisions, says a  survey sponsored by the Newspaper Association of America.

The survey (.pdf) of 2,500 adults by Frank N. Magid Associates found that four-in-five adults (79 percent) said they “took action” as a result of newspaper advertising in the past month. This included clipping a coupon, buying something, visiting a website for more information or trying something for the first time.

Preprints are extremely popular, the survey found, with 90 percent of adults saying they regularly or occasionally read Sunday inserts; for the full week the figure stands at 79 percent. Over the course of 30 days, 79 percent of respondents acted on newspaper preprint advertising.

When researchers compared newspaper ads to other media as a “primary medium for checking advertising,” they found newspapers on top at 35 percent, followed by the Internet at 28 percent, direct mail at 12 percent, television at 9 percent and other media in lower single digits.

Online advertising matures, tops old media

Thursday, April 14th, 2011

Online advertising grew at a double-digit rate despite the economy last year and eclipsed newspaper advertising for the first time, the Internet Advertising Bureau and PricewaterhouseCoopers LLP said this week.

Revenue from ads on the Web rose by 15 percent in 2010 to $26 billion, topping newspapers at $22.8 billion, cable TV networks at $22.5 billion, broadcast TV with $17.6 billion and radio with $15.3 billion in advertising revenue, according to the Dow Jones Newswire review of the report.

The  Newspaper Association of America put total print newspaper advertising at $22.795 billion last year, an 8.2 percent drop compared with 2009. Online advertising at newspapers grew by 10.9 percent in 2010, to $3 billion, about 13 percent of total ad income.

“We now have had five consecutive quarters of growth since the great recession impacted interactive advertising in 2009,” Sherrill Mane, IAB’s senior vice president, industry services, said in the IAB’s news release introducing the online revenue report. “The record-breaking revenue in Q4 2010 and the total year indicate that interactive advertising has weathered the storm and then some.”

Search is still the largest online ad category with 46 percent of revenue, but display advertising on the Web grew by 24 percent “in a sign that major brands are growing more comfortable with the medium as a place to invest their marketing dollars.”

Newspaper ad revenue at 25-year low

Thursday, March 17th, 2011

Though the slide has slowed, the $26 billion spent on newspaper ads last year represents  a 25-year low, according to figures released Tuesday by the Newspaper Association of America.

The industry took in $25 billion in ad revenue in 1985, the Associated Press says.

“While the economy has slowly improved since 2009, newspaper ad sales continue to wane due to customers’ shift toward online advertising. Newspaper advertising totaled $7.3 billion in the last three months of 2010, down 4.7 percent from the prior year.”

Online ad revenue was up 10.9 percent last year to $3.04 billion after two years of decline, says Radio & Television Business Report. “All other ad categories were negative, although they did not repeat the double-digit percentage declines seen for two straight years (three for classified). National advertising fell 4.6 percent to $4.22 billion; retail was off 9.1 percent to $12.93 billion; and classified dropped 8.6 percent to $5.65 billion.”

NAA President and CEO John Sturm said advertising has shown signs of a continued turnaround and an essential repositioning. “Newspapers – in print and digital form – remain the largest source of original, high-quality news and information in the United States, reaching nearly two-thirds of all adult Internet users and attracting more than 164 million people who read a newspaper in print or online each and every week.”

Print can’t even market itself well, Shafer says

Friday, October 1st, 2010

Jack Shafer, media critic for Slate, is not so impressed with the Newspaper Association of America ad campaign aimed at persuading advertisers that newspapers remain a viable marketing medium.

The ads are “so bad I can imagine advertisers interpreting it as the newspaper industry’s no-confidence vote in itself,” Shafer says. “Nobody would blame advertisers if they looked at the NAA ad and used it as an excuse to pull their buys from … papers.”

A second campaign for magazines that the Magazine Publishers of America recently claimed is working also fails to impress Shafer, though he doesn’t explain specifically why.

“If anybody understands how to make a print advertisement that really, really works, it should be newspaper and magazine people,” Shafer says. “But these two campaigns are so bumbling, so unpersuasive, so dull, that you’ve got to wonder whether any advertising intelligence went into making them. Maybe the goal was to sell the newspaper and magazine businesses as outposts of the desperate and pitiful worthy of advertiser charity. If so, Clios all around.”

Newspaper ads show nine months of recovery

Wednesday, September 8th, 2010

The falloff of newspaper ad spending appears to be moderating, the Newspaper Association of America says, with a decline of 5.6 percent recorded in the second quarter this year compared to last, the third quarter in a row with a smaller year-to-year loss.

Through 2009, the deficit was 29 percent in the second quarter, then 27.9 percent and 23.7 percent in the final three months, Market Watch says. Then this year started with a drop of only 9.7 percent.

Meanwhile, online ad spending rose by 14 percent, following 5 percent growth in the first quarter and declines during each quarter of 2009.

Newspaper ads up online, continue to fail in print

Friday, May 28th, 2010

The Newspaper Association of America said Thursday that U.S. newspapers saw a gain in online advertising sales in the first quarter of this year that represents the first growth since the same period in 2008. But print advertising, which is where newspapers really make their money, continued to fall.

Online ad sales rose 4.9 percent in the quarter to $730.4 million, well shy of the $2.96 billion newspapers earned through their largest advertising segment, retail — or display — advertising.

Revenue from printed retail advertising fell 11 percent in the quarter, according to a Bloomberg report, which compares well to a 24 percent drop in the same period a year earlier. Classified advertising fell 14 percent to $1.25 billion, and national ads fell 8.3 percent to $1.04 billion.

Newspaper revenue sinks to 23-year low

Thursday, March 25th, 2010

Another bad report about newspaper ad revenue: the Newspaper Association of America, a group that some accuse of spinning too positively for its industry, said this week that ad revenue hit its lowest level since 1986 after a drop of 27 percent in 2009.

But the $27.6 billion in 2009 revenue looks worse when you adjust for inflation, the Associated Press’ report says. The $27 billion earned in 1986 “would equal nearly $53 billion in today’s dollars.”

On the other hand, “ad revenue in the final three months of the year fell 24 percent from a year earlier to $7.7 billion — the smallest quarterly percentage decline of 2009.

“‘Unfavorable trends for newspaper ad spending continued to diminish as the fourth quarter progressed, a sign that business conditions have begun to gradually improve,’ NAA President and CEO John Sturm said in a statement.”

Magazine publishers press case in magazines

Monday, March 1st, 2010

Five leading magazine publishers have joined for a multimillion-dollar ad campaign to “press the case that magazines remain an effective advertising medium in the age of the Internet because of the depth and lasting quality of print, compared with the ephemeral nature of much of the Web’s content,” the Wall Street Journal said Monday.

Time Inc., Hearst, Condé Nast, Wenner Media and Meredith will run nearly 1,400 pages of the ads  in such publications as People, Vogue, Ladies’ Home Journal and other magazines this year.

“The five publishers say they have committed to run the first of the ads in the front one-fifth of their titles’ pages, and have agreed to run all subsequent ads in the first half.

“The ad space they are devoting to the campaign is valued at more than $90 million, based on public ad rates for each of their participating magazines,” the WSJ said.

Elsewhere, said the Journal, the Newspaper Association of America has run repeated ads to publicize the number of people who read a daily newspaper. As with the magazine campaign, the newspaper trade group says its ads are designed to counter the notion print is a dead medium. The local-TV industry’s trade group is starting an on-air ad campaign this month to encourage companies to advertise on their local TV stations.