Newspaper advertising down again in Q2


Total ad expenditures at newspaper companies were 11.3 billion for Q2, an 8.6% decrease from the same period a year earlier, according to preliminary estimates from the Newspaper Association of America (NAA). Spending for print ads in newspapers totaled 10.5 billion, down 10.2% versus the same period a year earlier. Among the major print components in Q2, 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.

Ad expenditures for newspaper Web sites, however, increased by 19.3% to 796 million in the second quarter versus the same period a year ago. The increase reflects the 13th 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 Q2.

RBR/TVBR observation: Newspaper ad revenues were down 8.6% in Q2, but the NAA headlined its release with ads for newspaper websites being up 19%. Online is the growth area, but still not able to overcome the sharp decline for the larger traditional business.