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McClatchy Ad Revenue Spirals Down Nearly 30%

Like The New York Times Company, which reported a 27% decline in ad revenue, McClatchy reported a loss that was worse than expected in the first quarter.

Advertising revenue at McClatchy was down 29.5% from the same quarter in 2008. Classified ad revenue plunged 41.8%, on massive declines in employment (down 63%), real estate (-44.3%) and automotive (-32.5%), according to Editor & Publisher.

Also like The New York Times Co., McClatchy digital advertising was down. Digital advertising slipped 8% at the Times Co., and was down 4.7% at McCatchy.

But McClatchy says that excluding a massive drop in help-wanted ads, digital revenue increased 28.7%. All categories of digital advertising continue to outperform print advertising, according to the company.

Deep staff cuts at McClatchy have been the result of revenue declines, with the company announcing in March that it would axe 1,600 jobs. Those cuts, plus earlier layoffs, bring McClatchy’s work force down by a third in less than a year, writes the AP.

The company reported a total loss of $37.7 million, from a loss of $993,000 in the first quarter 2008. Revenue from continuing operations was $365.6 million, down 25.1%.

Newspaper ad declines have been happening at what the Wall Street Journal calls a “historic pace.” Zenith Optimedia is predicting that newspaper ad spending will fall 12% in 2009.