Newspapers Suffer Most in Ad Dollars Lost to Internet

July 12, 2007

This article is included in these additional categories:

Automotive | Financial Services | Newspapers | Retail & E-Commerce | Television

Newspapers more than other media are losing ad dollars from leading national advertisers, who are shifting budget away from traditional media to the internet, according to a new report from Wachovia Equity Research, reports Editor & Publisher.

By category, in 2006 only financial services advertisers increased spending in newspapers, which have seen less money from the automotive, retail, telecommunications, general services, media, and tech/internet categories, according to Wachovia.

Additional findings from Wachovia:

  • Of the seven categories considered, only one – financial services – increased spending in newspapers in 2006.
  • Television, however, had more money flowing in from four of those seven categories: telecommunications, automotive, media and tech/Internet.
  • Among the seven categories in the aggregate, newspapers lost 14.3% in advertising dollars, and TV gained 4.4%. Internet ad spend increased 17.8%. Spend in other measured channels decreased 1.1%.
  • The top telecommunications advertisers shifted the most ad spend away from newspapers: In 2005 they spent 31.6% in newspapers, but in 2006 they spent 24%.
  • In 2005, the top auto advertisers spent 9.2%, but just 4.6% in 2006, on newspapers.
  • Retail advertisers spent 29.8% on newspapers in 2005 and 28% in 2006.

Internet ad spend growth would need to be 15% per year over the next decade to reach the level of ad spend going to newspapers, according to Wachovia.

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