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Advertising expenditures for newspaper websites increased 21.1 percent, to $773 million, in the third quarter compared with the year-earlier period, according to preliminary estimates from the Newspaper Association of America (NAA), reports MarketingCharts.
The increase was the 14th consecutive quarter of double-digit growth for online newspaper advertising since NAA started reporting online ad spending in 2004, NAA said.
Newspaper website advertising now accounts for 7.1 percent of total newspaper ad spending, compared with 5.4 percent in the third quarter of 2006, according to the estimates.
(See table of U.S. newspaper ad expenditures, print and online, 1Q06 to 3Q07.)
Total advertising expenditures at newspaper companies were $10.9 billion for the third quarter of 2007, a 7.4 percent decrease from the same period a year earlier.
Spending for print ads in newspapers totaled $10.1 billion, down 9 percent compared with the third quarter of 2006.
Among the major print components in the third quarter, classified advertising fell 17 percent to $3.4 billion. Retail declined 4.9 percent to $5.1 billion, and national was down 2.5 percent, coming in at $1.7 billion.
(See table of US newspaper print ad expenditures, by major component, 1Q06 to 3Q07.)
Within the classified print category in the third quarter, real estate advertising fell 24.4 percent to $1 billion. Recruitment dropped 19.7 percent to $882.4 million. Automotive was down 17.7 percent to $796.6 million. All other classifieds were up 2.7 percent to $713.3 million.
“Newspaper websites continue to generate substantial revenue by offering advertisers access to the nation’s most desirable group of consumers,” said NAA President and CEO John F. Sturm. “At the same time, broader economic issues are impacting our industry the same way they are impacting other media - the continued fallout from declines in the housing market clearly affects real estate, recruitment and retail advertising.”
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