VSS: Newspaper industry to stabilise, then grow in 2014

Posted by Savita Sauvin on August 24, 2010 at 11:55 AM

The declines in newspaper spending are expected to stabilise in 2013, and the industry is slated for growth in 2014, according to forecasts by Veronis Suhler Stevenson Communications Industry, a private equity firm specialising in media business and marketing services for the year 2004-2014, Editor & Publisher reported.

As print circulations decline, retail, national and classified advertisers will continue to invest interests in harnessing the potential reach of digital media platforms "to target audiences and improve return on investment." The report further stated that "weekly newspapers are no longer insulated from the migration of users and advertisers to the Web," and total industry spending is expected to fall by 9.5 percent this year, including decline in dailies by 10.6 percent, weeklies by 7.1 percent and digital platforms by 1.1 percent.

However, a rebound in national, regional and classified advertising this year will "nudge the newspaper advertising market towards recovery," according to E&P's report. To maximise operational efficiencies, the trend followed in the industry such as outsourcing printing, distribution, copy editing and design jobs will continue to accelerate, while the massive cost-cutting trends are forecast to dissipate.

The report also notes that newspapers are expected to offer more e-reader apps to attract readers and advertisers who have abandoned print advertising.