Newspapers are on the nose with advertisers deserting them in droves for online according to Digital Media Wire. In Australia advertising revenue in newspapers has droppped as much as 11% for some major publishers.
The DMW claims that 2007 could wind up as the worst on record for the newspaper advertising industry, which is dealing with long-term industry changes as well as the weakened economy and housing market, In the USA the prestigious New York Times reported on Monday that after an 8% decline in advertising revenue last year, newspapers are seeing an additional 12% drop so far this year, and financial reports issued by some recently would suggest a 14-15% decline in May.<\/P>
“I think the probability is very high that there will be a number of examples of individual newspapers and newspaper companies that fall into a loss position,” Goldman Sachs analyst Peter S. Appert told The Times.<\/P>
“And I think it’s inevitable that there will be closures in this industry, and maybe bankruptcies.”<\/P>
While rising newsprint prices and falling print circulation have contributed, the advent of online advertising and classifieds is the key factor in the industry’s decline.<\/P>
Online ad revenue at newspapers has grown 20-30% annually in recent years, but still accounts for less than 10% of total newspaper ad revenue, The Times reported.<\/P><\/p>\n","protected":false},"excerpt":{"rendered":"
Newspapers are on the nose with advertisers deserting them in droves for online according to Digital Media Wire. In Australia advertising revenue in newspapers has droppped as much as 11% for some major publishers.<\/p>\n","protected":false},"author":42,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[28,51],"tags":[],"class_list":["post-82293","post","type-post","status-publish","format-gallery","hentry","category-archive","category-marketing","post_format-post-format-gallery"],"yoast_head":"\n