Report: Online Outpaces Print Ad Growth for Newspapers

Authored by Mark Hefflinger on June 8, 2006 - 5:12pm.

Vienna, Va. - Advertising on newspaper websites increased 34.9% in the first quarter of 2006 to $613 million, compared with print ad growth of 0.3% to $10.5 billion, according to a report from the Newspaper Association of America (NAA). Overall, newspaper advertising totaled $11.1 billion in the first quarter, an increase of 1.8% over the same period last year. "Newspaper publishers are winning on the Web and their efforts to attract visitors, build leading Internet properties and monetize their online investments are being recognized by advertisers and consumers -- as shown by a full two years worth of outstanding consecutive gains," said NAA president and CEO John F. Sturm. "Internet revenues are consistent with our expectations of continued, strong double-digit growth; at roughly 5.5% of total newspaper advertising revenues for the quarter are beginning to gain more critical mass." The report also found that, despite competition from online services like Craigslist, print classified advertising was up 4.7%, fueled by a 26.3% increase in real estate ads. "Meanwhile, newspaper print advertising continues to hold its own in the face of overall ad softness, reflecting our industry's ongoing dialogue with the advertising community to demonstrate the enduring value of newspapers' reach and engagement with consumer audiences," added Sturm.

http://tinyurl.com/j22v8 (NAA announcement)
http://www.iht.com/articles/2006/06/06/business/adco07.php