The Future of Print

Local Online Ad Spend Expected to Grow

Posted in Boom by futureofprint on February 26, 2010

NEW YORK U.S. local advertising spending isn’t expected to recover fully until 2012, according to BIA/Kelsey’s annual forecast. Over a five-year period 2009-2014 local advertising spending is anticipated to grow at compound annual growth rate CAGR of 2.2% to $144.9 billion.”

Even with improvements in the overall economy, we do not anticipate a rapid recovery among traditional media over the forecast period, because we believe the structural change in the local media industry has accelerated,” Neal Polachek, president of BIA/Kelsey, said in a statement.

The advisory and research firm notes spending on traditional media is expected to decline from $115 billion in 2009 to $108.2 billion in 2014. Meanwhile, local online advertising spending is expected to jump from $15.2 billion in 2009 to $36.7 billion in 2014 CAGR of 19.3%.

via Local Online Ad Spend Expected to Grow.

Nielsen: U.S. ’09 Ad Spend Down 9%

Posted in Doom by futureofprint on February 25, 2010

In the wake of a tough advertising market, only three of 19 media categories made meaningful gains in 2009 versus the year before: Cable television, Spanish-language cable TV and free-standing insert coupons.

Those were the few bright spots from a Nielsen Co. report on U.S. ad spending, in which overall revenues sank 9%, or $11.6 billion to $117 billion last year.Nielsen says this continues the trend of six straight quarters of declining ad revenues. In the first six months of 2009, Nielsen says the U.S. advertising market shrank 15.4%; in the first nine months of 2009, it pulled back by 11.5%.

Bigger media businesses cable television grew 14.8% and free-standing-insert coupons climbed 11.5% in 2009 versus 2008. The small advertising business of Spanish-language cable TV soared a massive 32.2%.Nielsen pegged the Internet advertising business — which came in fourth place after FSI coupons — as virtually the same as a year ago — a tiny growth of 0.1%.

Sixteen other ad categories showed declines — many with big double-digit percent drops.Spot TV in the top 100 markets sank 16.1%; local newspapers were off 10.4%; national magazines, down 19.3%; and outdoor dropped 11.2%.

via MediaPost Publications Nielsen: U.S. ’09 Ad Spend Down 9% 02/25/2010.

Google’s Wojcicki On Paid Search And Display Ads

Posted in Boom by futureofprint on February 23, 2010

About 80% of the advertisers tapping into Google’s Display Ad Builder these days are new to display advertising, according to Susan Wojcicki, vice president of product management at Google. Most have a history running paid search ads, she tells me.

So I ask her if advertisers benefit from running both display and paid search ads simultaneously. While Wojcicki called the question “complicated,” because it requires data and analysis, she did tell me Google knows that these advertisers invest more money in display ads without borrowing budgets from paid search campaigns.

via MediaPost Publications Google’s Wojcicki On Paid Search And Display Ads 02/23/2010.

Publications Newspapers Lost 105K Jobs Since 2001

Posted in Doom by futureofprint on February 23, 2010

The cost of progress can be painful. One reality: the number of layoffs endured by the newspaper industry over the last couple of years. The rise of the Internet began lowering the curtain on the golden age of print a decade ago, and 105,000 staffers have lost their jobs as a result.

Based on records kept by the U.S. Census Bureau and Department of Labor and tallies by various industry watchers, total employment in the newspaper publishing business has declined from 414,000 in 2001 to 309,000 at the end of 2009, a 25.4% drop over the course of eight years.

To put that in perspective, the U.S. auto industry shed about 450,000 jobs over the same period, with total employment dropping from 1.3 million to 850,000, for a 33% decline. High-tech employment lost 700,000 jobs, slipping 11% from 6.6 million to 5.9 million. In short, the newspaper business is about where many would expect, in terms of percentage losses — worse off than high-tech but a little bit better than the auto industry.

Still, publishers have made an effort to preserve their newsroom headcounts, although some ax-swinging was clearly unavoidable. From 2001-2009, newspaper newsrooms lost a total 9,700 jobs, for a 17% decline from 56,400 to 46,700. The vast majority of cuts fell on business, administrative, production and circulation employees. (It’s also worth noting that many senior newsroom staff with relatively high salaries were probably replaced with younger, lower-paid journalists at entry-level positions.)

via MediaPost Publications Newspapers Lost 105K Jobs Since 2001 02/23/2010.

Reflections of a Newsosaur: High debt plagues many more publishers

Posted in Doom by futureofprint on February 12, 2010

While nine newspaper companies burdened with a collective $16.7 billion in debt have sought refuge to date in Chapter 11, the march to bankruptcy court may not be over for the battered industry.

Beyond the publishers who already have filed or announced plans to file for bankruptcy, seven publicly traded newspaper companies owe far more money than they should at a time they are confronting a deep and almost certainly prolonged collapse in advertising sales.

In a report last week discussing the finances of one of those heavily indebted companies, Fitch Ratings, a private agency that analyzes the quality of bonds for institutional investors, said publishers at this critical point should not have debt greater than one time their annual operating profits.

Read the full story: Reflections of a Newsosaur: High debt plagues many more publishers.

‘WSJ’ Astounds with Gains in Print Ad Revenue

Posted in Boom by futureofprint on February 2, 2010

News Corp. doesn’t really provide a lot of Dow Jones information in its earnings releases but golly gee they certainly said a lot with one graph in its Q2 fiscal year ending Dec. 31 statement. Mostly this: Print advertising revenue at The Wall Street Journal GREW 5%. I will repeat this: print revenue GREW 5%. It did even better on the digital side, where ad revenue jumped 17%.

via Fitz & Jen: ‘WSJ’ Astounds with Gains in Print Ad Revenue.