gannett
Global ad spending is expected to rise 3.5% in 2010 up from the estimates of a 2.2% increase reported a quarter ago. Growth in spending is being driven by the rise in online advertising spending, which is projected to increase from $49.8 billion in 2008 to $82.7 billion and contribute to 17.1% of global ad spending in 2012. For the United States, the report forecasts that mobile advertising spending will grow 43.2% a year between 2009 and 2012 and social media by 30.2%, while overall online spending will increase 15.6% in the period. Overall U.S. ad spending is expected to rise 1.1% in 2010 compared with the 1.5% decline previously projected. Read the full article »
The purse strings controlling ad budgets have loosened, and for 2010, overall ad budgets in the United States are expected to grow 1.2% over the year to $368 billion. The country’s newspaper giants are already seeing numbers improve. Additionally, analysts expect that during this year, digital advertisement spending will contribute 32.5% of the total ad spending, compared to 30.3% for print. This will be the first time ever that digital ads account for more ad spending than print ads. Read the full article »
Even as newspapers fold and circulation numbers shrink, a recent study by the Pew Research Center shows that Americans are not completely abandoning the print medium in favor of digital formats, which is not surprising considering that radio did not totally replace newspapers nor TV totally replace radio. According to the study, 92% of the population surveyed accesses news using more than one source and 59% of users access news both online and offline. Read the full article »
The print media is operating in permanent crisis mode, with big names such as BusinessWeek and The Boston Globe up for sale in the coming quarters. According to MediaFinder.com, already nearly 280 magazines have called it a day in the first half of the year. And it is not just the smaller titles: the entertainment magazine Vibe and Condé Nast’s Portfolio have shut down. Newspapers have been systematically shutting down their print operations, and going online only. Despite the profitable turnarounds witnessed by most companies which recently announced results, overall print media’s future remains uncertain, to say the least. Read the full article »
Just yesterday, I wrote that newspaper advertising in the US still commands $35 million in ad spend. But the number is declining at a fast pace. My Future of Journalism piece recently discussed some of the alternative models that are emerging.
Meanwhile, The New York Times Company (NYSE:NYT) seems to be one of the worst hit in the newspaper segment. They were struggling not only with financial restructuring but with their digital transformation efforts as well. Q1 revenues of $609 million fell nearly 19% over the year. For the quarter, the company reported a loss of $0.52 per share compared to their break-even position a year ago. Read the full article »
Poor economic conditions are plaguing all industries and companies alike. In late October several newspaper stocks announced their Q3 results, and, as in Q2 of this year, all of them turned in a disappointing performance. Given that during Q3 viewership was up on account of the US presidential campaigns and the Beijing Olympics, the results were positively depressing. Read the full article »
To go along with my post on the top 8 media companies, here is a brief analysis of what I see as the top 4 newspaper stocks. As online news gains ground, it is interesting to see how these giants are struggling in adapting their business models to new trends and how they are faring in the current difficult market. Read the full article »
US newspaper stocks have been facing the brunt of worsening economic conditions and the attack from digital media. The main source of their revenues – vertical classifieds – have steadily been moving online. Their response should be to invest in and acquire online verticals, which has happened to some extent. Not enough, though. The latest quarterly results of three companies, The New York Times, Gannett, and McClatchy, thus, were representative of the bloodbath their stocks have been experiencing. Read the full article »
