Wednesday, September 2, 2009

Ouch!... newspaper industry could lose $10 billion in ad revenue this year

I meant to post this a couple of days ago but it slipped through the cracks...

Alan Mutter sent a mini tsunami throughout the newspaper industry Monday when he posted his analysis of revenue figures released from the Newspaper Association of America which projected the newspaper industry will lose a massive $10 billion in ad revenue compared to last year.

Click here for the full story


Anonymous said...

Though ultimately it’s all about getting the eyeballs on the paper, McClatchy’s strategy of only getting liberal eyeballs on their shrinking postage stamp paper is about as much a winner as MSDNC is to Fox (See Drudge for statistics.)

Yet time and time again on this blog, the argument of McClatchy ostracizing 50% of its audience falls on deaf ears.

In fact, McClatchy types consistently and vehemently deny that conservative demographics matter in selling their liberal papers, insisting that it’s the advertisers that only need be satisfied.

Will they finally come to the party? Never. Moreover, who cares.

I can still hear the echo of the blame the wind, blame the straw man argument of Melanie Sill.

Just keep blaming, "That darn Economy” girlfriend, as McClatchy continues its swirl down the toilet bowel to oblivion.

Anonymous said...

It's the conservatives who own most of the profitable businesses. As they search and find other advertising outlets (and they are) maybe McClatchy will come out of its self-destructive coma. Biting the hand that feeds it is a fleeting option.

Anonymous said...

Friends, not editors, shape internet habits (FT)

Charles Miller has had his media diet reshaped by social networks.

Just a year ago, the customer service executive for DirecTV in Los Angeles began his day by looking at the home page of the Yahoo website, surfing links to the big news stories selected by the site’s editors.

But today Mr Miller begins his day on Twitter and Facebook – primarily social networking sites –where he reads stories and watches videos suggested by his friends and connections.

Anonymous said...

With Newsstand Troubles, Magazines Focus on Subscriptions (NYTimes)

Get ready for more subscription cards wafting out of magazines.

Publishers like Meredith are lessening their dependence on newsstand sales, and trying to increase the subscriptions sold directly by them.

Although Meredith’s newsstand sales declined sharply at magazines like Ladies’ Home Journal and Better Homes and Gardens in the Audit Bureau of Circulations report released Monday, it’s not as bad as it seems, the company said.

For Ladies’ Home Journal, only 4.8 percent of its total circulation came from newsstand sales, and for Better Homes & Gardens, only 2.5 percent of its total circulation. And Meredith had also dropped a test program where it sold magazines at outlets like Dollar Tree during the period, which affected sales, said spokesman Patrick Taylor.

There’s been consolidation of distributors, the companies that place the magazines on the newsstands, and some distributors have been raising fees. That leaves publishers either having to meet their demands or change distributors.

It also helps explain why some publishing houses are focusing on subscriptions instead.

Anonymous said...

Nielsen Reports 15% Decline In First Half Ad Spending, Cable Only Medium To Grow (Media Daily news)

Ad spending among the U.S. media monitored by the Nielsen Co. declined 15.4% during the first half of 2009 vs. the same period in 2008, according to preliminary figures released this morning by the research company. Total spending across those media declined by more than $10.3 billion to $56.9 billion.

Cable TV was the only medium to show significant ad revenue growth, rising 1.5% over the first six months of 2008. Nielsen noted that cable's first-half growth is remarkable, because ad spending on the medium actually declined 2.7% during the first quarter of 2009, indicating that it had an especially strong second quarter.

Anonymous said...

You can thank Fox News and its reporting on Obama for the 2 quarter revenue increase. The truth draws eyeballs.

Anonymous said...

Even when the economy turns around the revenue stream will be but a trickle for the Newspapers.

For both advertisers and audience, the media habits will have shifted.

All that's left is for the senior citizen demographic to evaporate.

Anonymous said...

"All that's left is for the senior citizen demographic to evaporate."

Absolutely agree.

With all the senior bashing from the Sac Bee cartoons, and McClatchy's shilling for the AARP/DNC DeathCare reform, seniors are bound to have a "Senior Moment" and in a "Hot flash" drop McClatchy papers.

T. D. said...

It's bad enough that the losses look to be coming in at about 50% of the value of advertising in 2000.

But, when you factor inflation in it comes down to 42% of the ad value in 2000.

Anonymous said...

Internet Ad Spending Declined in First Half of '09
The first half of 2009 was rougher on media than anticipated. Measured ad spending fell 15.4% compared with the first two quarters of 2008, according to a new report issued by Nielsen, meaning U.S. ad spending was down a whopping $10.3 billion to a total of $56.9 billion.