PricewaterhouseCoopers: US Newspapers to Grow at 0.7% between 2007-2011

Posted by Mica Swyers on June 25, 2007 at 2:22 PM

According to PricewaterhouseCoopers, the American newspaper industry is expected to grow at a compound annual growth rate (CAGR) of 0.7% over the next five years. In addition, PWC foresees the Internet as the primary force behind a 1.1% growth rate for advertising spending in the US during the same five-year period.

PWC predicts that print retail advertising will stabilize in 2009 and that overall retail advertising will grow from $22.1 billion in 2006 to $23 billion in 2011. Both print national advertising and print classified advertising growth rates are expected to decline slightly over the five-year period as well.

Although circulation revenue may experience a decline at a CAGR of 1.1% between 2007 and 2011, readership is actually growing if online readership is included in the numbers. According to Mila Petrova, entertainment and media assurance partner at PWC, online readers alone raised newspaper readership by 8% in 2006 compared to 2005. Over the next five years, PWC expects online advertising to increase at a CAGR of 18.8% and its percentage of newspapers’ total advertising to increase from 5.4% to 12%.

Source: Editor & Publisher through Media Info

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