Advertisers Reaping Advantages of Declining Ad Revenue


It is going up. It comes down lower. It repeats. The newspaper advertising industry’s revenue has improved and dropped and improved and dropped and improved again and dropped again. It leaped 16.3% in 1983 after which required a success in 1991 of 6.%. In 1997 we had a rise of 8.5% after which just four years later viewed newspaper ad revenue fall 9.%. Newspaper advertising earnings fell 28.9% within the third quarter of 2009. Reason to be concerned? Most likely not.

The concept that “history repeats itself” does not appear inappropriate possibly somewhat cliché. You get the drift. We’ve been here before. Newspaper advertising revenue hasn’t experienced the quantity of loss we view recently, however you will find outdoors factors playing into this drop which are news towards the industry. For instance, previously 2 yrs web advertising is continuing to grow in recognition and could be held a minimum of partly accountable for the 3rd quarter of 2009 to be the eighth consecutive quarter of double digit loss of newspaper ad revenue.

The web makes it easy that people advertise to some large perceived audience. A large number of websites available offer some form of advertising, and those that do not might have missed an chance. New advertising vehicles can excite everyone and make up a bandwagon effect. Internet along with other “interactive” advertising isn’t any exception. The wide ease of access of web advertising has produced fierce competition (to say the least). Some you visit are engrossed in ads selling something, frequently multiple companies selling exactly the same somethings.

The development of web advertising hasn’t fared well for newspapers. This case however, has produced a booming atmosphere for newspaper advertisers. Less ad revenue implies that less advertisers are spending their advertising dollars within the newspaper. Less advertisers within the newspaper represent less competition for individuals advertising. Ultimately, less competition among advertisers leads to an elevated return on marketing expenses for individuals still advertising in newspapers.

Newspaper circulation only has dropped typically 7.41% previously 2 yrs. Less than many have speculated. Especially considering that on the national level we’re speaking about circulations within the high 40 millions.

This is actually the point: advertisers have to face much less competition in newspapers today compared to what they did 2 yrs ago, as the product has continued to be pretty much unchanged. Newspaper advertising is producing more results for those who have tied to it.

Although it remains uncertain this trend continues, it seems more and more likely the newspaper industry has witnessed its darkest hour in advertising revenue. The very first indications of the rebound are apparent. US Newspapers, a complete service advertising agency that are experts in newspaper advertising, reports that they’re expecting a rise in advertising revenue of 68% this quarter (when compared to first quarter of 2009). The companies’ president, Jim Trammel explains, “We view a sizable rise in start up business in the last couple several weeks. Previous customers happen to be coming back regularly too. We all know the ads do well, because re-orders are consistent. If this sounds like any suggestion of the profession in general, but it’s, it appears as if situations are searching up for newspapers.”