Online newspaper ad spend continues to rise

The previous five quarters have seen declines in print-only advertising, falling from $10.5 billion in Q1 2005 to $9.8 billion in Q2 this year, found the NAA.

In contrast, online newspaper advertising has continued to rise, albeit at a slower rate than in previous quarters. Q2 2007 saw a 19.3 percent year-on-year growth to $796 million whereas Q1 recorded a 22 percent gain.

The migration of advertising online is continuing and newspaper websites now account for 7 percent of newspaper total ad spending, up from Q2 2006’s 5.4 percent. However, overall advertising revenues at newspapers fell 8.6 percent in Q2 2007, as the fall in print advertising wasn't compensated for by the rise in online advertising.

“Newspaper Web sites continue to have a positive impact on the industry’s revenue stream during a time of transition,” said NAA President and CEO John F. Sturm in a recent release.

“As newspapers transform themselves into multimedia platforms offering a diverse portfolio of print and digital products, publishers continue to deliver the award-winning, innovative content that makes newspapers the most trusted source of news and information," he added. "Advertisers know that newspaper Web sites are ideal for reaching online users with the most attractive demographics.”

Tags: Newspaper Association of America, online advertising, online newspapers