Newspapers companies have hoped against hope that the rapid fall of their print advertising would level out or at least decelerate. But, for the large companies like Gannett (GCI) and The New York Times (NYT), the hope continues to go unrealized.
New numbers from the Newspaper Association of America show that online advertising at newspapers moved up 19% in the second quarter of the year and hit $796 million. This was of little help as "Total advertising expenditures at newspaper companies were $11.3 billion for the second quarter of 2007, an 8.6 percent decrease from the same period a year earlier. Spending for print ads in newspapers totaled $10.5 billion, down 10.2 percent versus the same period a year earlier.", according to the NAA
Key classified ad categories including real estate, automotive, and jobs fell by 20% as the business moved to only classified sites from Craiglist to Realtor.com to Monster (MNST).
And, the industry has no solutions.
Douglas A. McIntyre