No wonder it’s a recession!
The Newspaper Association of America announced today that total print advertising experienced the worst drop in 50 years last year (via Instapundit).
According to new data released by the Newspaper Association of America, total print advertising revenue in 2007 plunged 9.4% to $42 billion compared to 2006 — the most severe percent decline since the association started measuring advertising expenditures in 1950.
The drop-off points to an economic slowdown on top of the secular challenges faced by the industry. The second worst decline in advertising revenue occurred in 2001 when it fell 9.0%.
Of course it’s an economic slowdown - the newspapers say so. Based on the numbers, they would know it’s an economic slowdown better than anyone. After all, their economy just contracted by 9.0%. It does make you wonder how much recession reporting there would be if their advertising numbers went up, though.
One interesting quote, however:
There are signs that online revenue is beginning to slow as well. Internet ad revenue in 2007 grew 18.8% to $3.2 billion compared to 2006. In 2006, online ad revenue had soared 31.4% to $2.6 billion. In 2005, it jumped 31.4% to $2 billion.
As newspaper Web sites generate more advertising revenue, the growth rate naturally slows.
For those of you that are wondering why I’m pointing this out, let’s take a look at the numbers:
2005-2006: $2 billion to $2.6 billion (+$600 million)
2006-2007: $2.6 billion to $3.2 billion (+$600 million)
Yep - it’s slowing all right. Online revenue grew $600 million more than the previous year in 2006, and it grew $600 million more than the previous year in 2007. Since the second number is less than the first number, you can see that growth is definitely slowing, in much the same way that, if I’m doing 60 MPH for 100 miles, then do 60 MPH for 100 more miles, I’m going slower in that second stretch of 100 miles than I was in the first stretch. Makes sense, right?
(Leave inflation out of this, damn it! I’m trying to make a point.)
news | David Colborne | 
March 28, 2008 5:48 pm
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