US 2007: Pessimism for ad revenue predictions
Posted by Jean Yves Chainon on December 5, 2006 at 11:59 AM
Newspaper advertising in the US, according to the Financial Times, is supposed to be one of the categories to suffer most in 2007 from the advertisers’ global switch to online.
Whilst advertising revenues on the whole, in the US and across the world, are expected to grow next year, Merrill Lynch has revised its forecast twice for newspaper ad revenues: from flat to minus 0.5%, now down by 1.5% for 2007. Lehman Brothers projected the even more pessimistic figure of a 4% decrease.
In the meantime, internet advertising is expected to continue its explosive growth, somewhere around 28% (figure by Zenith). Much of the print papers' losses come from the fact many classified advertisers are switching to an easier and cheaper online alternative.
The forecasts aren’t perfectly reliable though, as yesterday still some sources projected a slight increase in newspaper ad revenues for 2007.
Source: Financial Times
In the meantime, internet advertising is expected to continue its explosive growth, somewhere around 28% (figure by Zenith). Much of the print papers' losses come from the fact many classified advertisers are switching to an easier and cheaper online alternative.
The forecasts aren’t perfectly reliable though, as yesterday still some sources projected a slight increase in newspaper ad revenues for 2007.
Source: Financial Times
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The newspaper print classified, as we know it, is going to die. This pessimism about newspaper advertising has gained much publicity in the last year. What we need to hear more about is how to solve the problem. Tell us more about companies that are offering solutions to the advertising problems newspapers are facing.
Recently, I have heard about a solution called MyAdSource. They appear to have a good solution that could help newspapers. You could start by talking about them.