2008: Newspaper Ad Revenue Continues Decline

Posted on 1/9/2008 by Jim Pickerell | Printable Version | Comments (0)

According to JP Morgan analyst Imran Khan, U.S. newspaper ad revenue declined 8.6% in 2007, and he believes the decline will accelerate in 2008. In 2006, the decline was only 1.7% compared to 2005.

Web advertising on newspaper sites is not making up for the loss.

Khan expects the CPM (cost per thousand) rate to increase 4% in 2008 and 20% in 2009. However these increases are based on the assumption that there won't be a recession in the U.S. Currently, 85% of online display ads in the U.S. are sold at less than $1/CPM.

In an attempt to stay profitable, newspapers are cutting staff. On the photo side of the business, they are moving as fast as possible into offering video online instead of concentrating on stills.

TV sites also offer plenty of video and tend to be much more appealing destinations for users that newspaper sites with the same capacity.

Copyright © 2008 Jim Pickerell. The above article may not be copied, reproduced, excerpted or distributed in any manner without written permission from the author. All requests should be submitted to Selling Stock at 10319 Westlake Drive, Suite 162, Bethesda, MD 20817, phone 301-461-7627, e-mail: wvz@fpcubgbf.pbz

Jim Pickerell is founder of www.selling-stock.com, an online newsletter that publishes daily. He is also available for personal telephone consultations on pricing and other matters related to stock photography. He occasionally acts as an expert witness on matters related to stock photography. For his current curriculum vitae go to: http://www.jimpickerell.com/Curriculum-Vitae.aspx.  


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