Total advertising in the United States jumped by 5.7 percent to US$63.6 billion in the first half of 2010, compared to the same time last year, according to media research company Kantar Media, AdWeek reported yesterday. However, the newspaper industry as a whole saw a 3 percent drop to $8.6 billion.

National newspapers saw a 7.1 percent growth in ad expenditure, reaching $1.2 billion, while Spanish-language titles experienced a 4.8 percent hike to $127 million. Market Watch pointed out that nationals saw increases as a result of gains at The Wall Street Journal. Meanwhile, ad spend at local papers decreased by 4.6 percent to US$ 7.3 billion.

"The rally in ad spending that has emerged from last year's collapse continued at a steady pace through the second quarter, even as softening economic data on retail sales, spending and employment began to raise concerns about the outlook for consumer activity," said Jon Swallen Kantar Media's Senior Vice President of Research, Ad Week reported.

According to Media Post, newspaper free standing inserts (FSIs) saw a 7.6 percent augmentation, "as consumer packaged goods marketers aggressively targeted value-conscious consumers with couponing programs."

Even though ad spending online continues to increase in the United Kingdom, cuts to other areas are causing growing worry that a "double dip" downturn may ensure, according to the latest IPA/BDO Bellwether survey, the Financial Times reported today.

About 20 percent of companies cut their budgets in the second quarter, while 15 percent increased their budgets, according to the survey of 300 British companies. Marketing budgets were on the upswing earlier this year, but between April and June, they fell because "firms became concerned over a prolonged period of stagnation," the Daily Mail reported.
Markets are still expect to increase in 2010 compared to last year; however, it is unlikely the increases will happen as quickly as previously expected, Dow Jones explained. The survey illustrates this new "phase of slower growth."

Newspapers around the globe are innovating their advertising practices in many ways, both big and small, and the best examples were on display this week at the World Newspaper Advertising Conference in Copenhagen, Denmark.

As advertising and sales revenues are hit both by recession and increasing competition, newspaper companies are rapidly developing a wide array of new revenue possibilities. The conference, which closed on Friday, examined many of the new trends - and some unusual projects that show just how flexible newspapers can be. Two major themes emerged from the conference, organised by the World Association of Newspapers and News Publishers (WAN-IFRA): better audience and advertising effectiveness research is essential, and the traditional business model for newspapers - gaining revenue from advertising and sales - can be enhanced in a modern media company.

For example:

- In Portugal, where the property market has collapsed, developers have no money for advertising. So Impresa Classificados returned to a barter economy - exchanging a 300,000 Euro advertising campaign for a three-room apartment, which is promptly offered in a lottery. People registered through a special number and paid 72 cents per call - raising 300,000 euro in net revenue for the newspaper company. "So, in the end, we managed an income that corresponds to the real value of the campaign," said Geert Van Hassal, Managing Director of Impresa Classificados.

A study conducted by Microsoft Advertising found that for large retailers, print advertising is more effective than online ads, and more than twice as effective as television ads, The Times reported Monday. Each £1 spent on print ads garner £5 in revenue, while TV and Internet ads bring in £2.15 and £3.44, respectively.

Participants of the survey of 26 large UK retailers were anonymous, but included fashion retailers, department stores, large grocery retailers and big clothing stores. Twenty-four of the participants were "in the top 100 UK companies" when it comes to media expenditure, according to The Times.

The study concluded that Web and print advertising budgets should rise by 10 percent, while TV budgets should be lowered by the same amount.

Internet advertising, including wired and mobile, accounted for $12.6 billion in 2003, according to PricewaterhouseCoopers and SFN's World Digital Media Trends 2009. However, Internet ad spending is rapidly gaining share, and PwC predicts that in 2012, Internet advertising spending will reach $120.4 billion. Although it is still less than newspaper advertising, which is expected to be $136.8 billion in 2012, it accounts for 19 percent, only about two percent away from newspapers' share of 21.6 percent.