U.S. newspaper ad revenue drops again, but pace slows

Posted by Erina Lin on September 8, 2010 at 3:51 PM

U.S. newspaper advertising revenue dropped 5.6 percent in the second quarter, but the decline rate has slowed down, according to the latest figures published by the Newspaper Association of America.

Overall spending in the second quarter was down from $6.82 billion to $6.44 billion year-over-year. Print ad revenue declined 7.6 percent to $5.6 billion, while online spending was up 14 percent to $743.9 million, and now represents 12 percent of total newspaper ad revenues, Media Buyer Planner reported.

Newspaper ad revenue has declined for 16 quarters in a row, but the 5.6 percent drop in the second quarter was an improvement - compared to 9.7 percent decrease in the first quarter and 23.7 percent decline in the fourth quarter of 2009, according to the AFP article posted on Google News.

"Despite a highly competitive environment, online advertising growth rebounded back into double digits, while declines in traditional revenue categories continue to moderate as the general advertising recovery progresses," said John Sturm, chief executive officer of the NAA, in a statement.

"The fact that online now represents nearly 12 percent of overall newspaper advertising revenues bodes well for our medium's future in an increasingly digital environment," Business Week reported.

Retail advertising remained as the largest sales category, but was down 9.6 percent to $3.22 billion. Classified advertising dropped 6.3 percent while national print ads slipped 3.1 percent.