According to the preliminary estimates of the Newspaper Association of America, ad expenditures for newspaper websites has been shot up by 22.3 percent, to $750 million, in the first quarter compared with the first quarter of 2006. The NAA has further said in its statement, ‘The increase is the 12th consecutive quarter of double-digit growth for online newspaper advertising since NAA started reporting online ad spending in 2004’. Advertising on newspaper websites constitutes about 7.1 percent of total newspaper ad spending in the first quarter, compared with 5.5 percent for the corresponding period last year.
Total newspaper ad spending reached just over $10 billion in the first quarter, marking a fall of about 4 percent. At the same time, spending for print ads constituted around $9 billion. Classified advertising slipped by almost 13 percent to $3 billion for the quarter and retail also showed a decline of 2 percent to $4 billion. Crucially important real estate spending in newspapers also dropped 14 percent following widespread slump in the sector to $953 million, while recruitment advertisements slipped to $975 million representing 14percent fall. Automotive ad spending was also down for the quarter to $751 million marking 20 percent decline.
In a statement, John Sturm, president and CEO of the NAA, has stated,
While the classified category demonstrates the impact of how consumers and advertisers use the various media options available today, newspapers continue to make aggressive moves to redefine classified advertising revenue through new online partnerships and other approaches that will position them for the future.
In the meantime, the Financial Times reported that for every print reader lost, in terms of subscription and advertising revenue, tens of online readers must be gained. In order to keep users stick to the newspaper sites and adding new ones, newspaper sites are relentlessly redesigning and revising their looks and strategies. The risk of a deceleration in online ad spending only mounts pressure to frequently assess and redesign news sites.
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