Newspaper Ad Profits Dive! And A Chicken Reports The Sky is Falling
By Jim Symcox on Mar 29, 2008 in Advertising, Web 2.0
Editor and Publisher reports on statistics provided by Newspaper Association of America.
The point of the story is that newspaper ad revenue has declined by 9.4%, the second worst decline since they started to monitor it in 1950.
Does that mean that everyone needs to hurriedly move all their advertising to the Internet?
The short answer to that is no.
Like film and radio and TV, the mediums will eventually balance out the revenue they take. Overall the budgets may very well remain the same.
If the global media companies that produce papers also have websites (which we know they do) their revenue may remain pretty much as before, although its source may change.
However, that does mean there’s likely to be reduction in headcounts for newspapers if the Internet continues to grow its revenue share. That makes a newspaper less profitable and therefore the likelihood is that the weaker, less profitable, papers will be taken over by their stronger brethren.
