Newspaper Earnings Show Slowdown In Online Ad Growth


In reporting their respective Q1 earnings, newspaper companies have been able to point to at least one general bright spot over the past few quarters: online ad revenue increases, mostly from online classifieds. But as the earnings for the NYTCO, Gannett and Tribune have shown, interactive ad dollars are not growing as expected (Dow Jones and the smaller Journal Register Company represent the exceptions). And as WaPO prepares to release its Q1 earnings, the CEO of its online division tells the WSJ that online ad growth is slowing across the board. The outlook for newspapers this quarter, according to the WSJ piece:

— Online ad spending for newspapers will likely fall to a percentage in the low 20s this year from 28 percent last year, Borrell Associates estimates, reflecting a broader trend, as EMarketer predicts the overall growth of U.S. online-ad revenue will slow to 18.9 percent this year from 30.8 percent last year. It predicts newspapers will do slightly better.

— Competition from TV stations’ and magazines’ websites represents a new challenge, with outlets in those categories stepping up their digital efforts, as we reported last week. Other challenges are coming from sites like MySpace’s recently launched news feature. Also, advertisers are taking blogs and newsgroups more seriously, says one digital ad agency exec.

— The areas that have so far proved strongest for newspapers



In case you folks did not hear the news – the WSJ said last week that over 500 newspapers across the country lost almost 4% of total print circulation on average in the last 6 months. This situation is going to go from bad to worse. Pretty soon and while mom & pop publishers would like to close their proverbial eyes and make it go away this publisher's version of cancer will not get better in a slowing economy.

Lets face it, if a gallon of milk and gas are almost on par, something is not right with the economy we all knew and loved. Its time for a change, I just hope publishers are ready for it.

Clement Morgan

I will like to place an advert in your company for 2weeks,kindly let me know your adverts enquiry

Joshua Konowe

Hi David,

Your article along with the constant stream of bad news from content providers everywhere was why we started We are launching the product later this quarter (08') and hope that content providers will initially use it for already "dated" or "archived" content material as a way to monetize (according to metrics they choose) their content since they produced it. That way if it costs more or less to produce an article the content provider can slide the advertising profitability up or down and those advertisers who wish to participate can do so according to the content providers stated exit fee.

Take a look at: and let me know what you think. It is nothing like Kontera or Vibrant media.

Thank you in advance, we hope we can help not just the newspapers but anyone creating original and valuable content to stay in business.


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