U.S. newspaper revenues drop 29% in second quarter

Newspaper revenues drop by nearly a third in the second quarter of 2009, from $10.1 billion to $6.8 billion, according to the Newspaper Association of America.

Media Daily News reports the drop was caused by a 30 per cent drop in print revenues, from $9.3 billion to just under $6.2 billion, combined with a 16 per cent drop in online revenues, from $778 million to $653 million. Every major advertising category experienced loss, with national dropping 30 per cent from $1.6 billion to $1.1 billion, retail dropping 25 per cent from $4.7 billion to $3.6 billion, while the classifieds fell 40 per cent from $2.5 billion to $1.4 billion. Classified revenues were the cornerstone of newspaper ad revenues, so this fall is critical. During this period, automotive classifieds tumbled 43 per cent to $332 million, real estate fell 46 per cent to $336 million, and and recruitment plunged an alarming 66 per cent to $202 million. The economic downturn may be partially to blame, however revenue fall is mainly an indication of the effect of the movement of classified listings from print to Web. Taking a look at the second quarter of 2005, when auto classified revenues were almost $1.1 billion, real estate followed close behind with an even $1 billion, and recruitment shone with revenues of $1.3 billion, it is possible to see how serious the drop has been. Overall revenues also show how deeply the shift in media preference has effected the industry with revenues of $6.8 billion in the second quarter of 2009 about 44 per cent lower than the 2005 total of $12.2 billion.