Online Ad Spend Leaves Newspapers Eating Ink


newspaper_small.jpgADOTAS – While eMarketer has spending on online ads topped newspaper ad spend — print and online — for the first time, newspapers can take some solace that their ad revenue freefall seems to be leveling out.

Online ad spend increased by 13.9% to $25.8 billion in 2010, while spend on print advertising for newspapers rolls in at $22.8. Total print and online ad spend on newspapers comes in at $25.7 billion, falling 6.6% from $27.6 billion in 2009.

The 8.2% decline in newspapers’ print ad spend is not nearly as precipitous as the slide witnessed the previous few years: a 9.4% drop from 2006 to 2007; a 17.7% decline between 2007 and 2008; and a 28.6% plummet between 2008 and 2009. Still, print ad spend is less than half what it was in 2005 — $47.4 billion versus $22.8 billion this year. Online ad spend hasn’t picked up the slack in the least bit, topping out at $3.2 billion in 2007.

For 2011, eMarketer estimates online ad spend will grow to $28.5 billion, while newspapers’ print ad spend alone will fall another 6% to $21.4 billion. Online and print ad spend for newspapers in 2011 is predicted to drop to $24.6 billion, but online newspaper revenue will grow 8.6% to $3.2 billion.



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