Newspaper online ad grows, but ad revenue keeps sliding in Q3
By Erina Lin, Wednesday 21 November 2007 at 17:34 :: Advertising :: #892 :: rss
Newspaper online advertising revenue increased 21.1 percent to $773 million in Q3, compared to the same period a year ago, according to the Newspaper Association of America.
Online revenue in Q3 represented 7.1 percent of total ad revenue, compared to 5.4 percent in Q3 last year.
However, total advertising revenue for both print and online in Q3 dropped 7.4 percent to $10.9 billion. Print advertising revenue plummeted 9 percent to $10.1 billion.
Regarding print advertising, retail ad revenue declined 4.9 percent to $5.1 billion. Classified sank 17 percent to $3.4 billion, and national decreased 2.5 percent to $1.7 billion.
In Q2, total print and online revenue decreased 8.6 percent, while print only revenue dropped 10.2 percent.
"Broader economic issues are impacting our industry the same way they are impacting other media," said John Sturm, president and CEO of the NAA, in a statement. He explained the recessing housing market has impacted other ad categories like retail and help-wanted, according to Editor & Publisher.
"Newspaper companies continue to take aggressive measures to prepare for the future during a period of economic challenges for the industry," Sturm added.
With several newspaper companies that have remained red in October, Q4 is expected to show ad revenue declines. Gannett reported Monday that total ad revenue for the month slipped 5.3 percent, and McClatchy said Tuesday that total ad revenue in October plunged 9.9 percent.
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