Newspaper Advertising - Not Dead

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The newspaper advertising industry's revenue has been on a rollercoaster ride of ups and downs over the years. It increased 16.3% in 1983 and then took a hit in 1991 of 6.0%. In 1997 we saw a gain of 8.5% and then just 4 years later watched newspaper ad sales fall 9.0%. Newspaper advertising revenue fell over 25% in the third quarter of 2009. Cause for worry? Almost certainly not.

The cliche "history repeats itself" is not lost in translation in this situation. We have been here before. Newspaper advertising revenue has never experienced the quantity of deficit we have seen in the last few years, however there are outside factors playing into this decline that are new to the industry. For instance, in the past 2 years internet advertising has grown in popularity and can be held at least somewhat accountable for the third quarter of 2009 being the 8th consecutive quarter of double digit decline in newspaper ad income.

The internet has made it simple for people to advertise to a large perceived audience. An enormous number of websites out there offer some type of advertising, and the ones that don’t may have missed an opportunity. New advertising vehicles can excite the masses and create a bandwagon effect. Internet and other “interactive” advertising is no exception. The wide accessibility of online advertising generates fierce competition (to put it mildly). The content of many websites can appear secondary to the masses of advertising that cover many pages.

The growth of internet advertising has not fared well for newspapers. This condition however, has fashioned a thriving environment for newspaper advertisers. A reduced amount of ad earnings means that fewer advertisers are spending their advertising dollars in the newspaper. A smaller number of advertisers in the newspaper signify less competition for those advertising. In the end, less competition among advertisers results in an increased return on marketing expenditures for those still advertising in newspapers.

Newspaper circulation has only dropped an average of 7.41% in the last 2 years. A number that has been greatly exaggerated in the media. Especially when you bear in mind that on a nationwide level we are talking about circulations in the high 40 millions.

Newspaper advertisers are getting great results because they are competing with far less advertisers for a product that has remained essentially unchanged.

While it remains undecided that this trend will continue, it seems increasingly likely that the newspaper industry has seen its darkest hour in advertising income. The initial signs of a rebound are clear. US Newspapers, a full service advertising agency that specializes in newspaper advertising, reports that they are expecting an boost in advertising sales revenue of 68% this quarter (compared to the first quarter of 2009). The companies’ president, Jim Trammel explains, “We have seen a large increase in new business over the past couple months. Past clients have been returning on a regular basis as well. We know that the ads are doing well, because re-orders are consistent. If this is any indication of the industry as a whole, and I believe it is, it looks as though things are looking up for newspapers.”

Article Source: http://depositarticles.com/

US Newspapers is a newspaper advertising agency representing more than 6,000 community newspapers in the United States. Since their inception in 1998, US Newspapers has offered clients extremely valuable classified advertising & display advertising products at highly discounted prices. Their Community Target Program™ makes mass print advertising simple, at a price that makes sense. For more information, visit www.usnewspapers.com.

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