Newspapers See Online Ad Growth

  |  August 22, 2005   |  Comments

Online advertising saw double-digit growth, while print ads grew slightly.

Newspapers saw double-digit growth in their online advertising revenues in the second quarter of 2005, according to preliminary estimates from the Newspaper Association of America (NAA). The group said online ad spending rose to $500.7 million -- 28.6 percent higher than the same period a year ago.

Overall, ad revenues for newspapers and their Web sites totaled $12.2 billion for the second quarter of 2005, a 2.8 percent year-over-year increase. During the period, print ads in newspapers grew 1.9 percent year-to-year to reach $11.7 billion. Classified advertising led growth offline, growing 5.3 percent to $4.1 billion, while retail advertising rose 1.4 percent to $5.5 billion.

According to John F. Sturm, NAA's president and CEO, online advertising in newspapers is benefiting from companies' efforts to expand their online footprints. "Newspaper sites continue to rank at the top of the most visited online news sources in the nation," he said. "The significant growth in online ad spending is recognition of newspapers' leadership position on the Web."

Newspapers are facing stiff competition for classified advertising from online competitors like Craigslist and Oodle.

Many newspaper publishers, such as Tribune and Knight Ridder, have made moves to compete with these free providers and aggregators by opening up their own online editions to offer free classifieds in some or all categories.

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ABOUT THE AUTHOR

Kevin Newcomb

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.

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