New ad spending forecasts undermine hopes for newspaper and magazine recovery

Before you go, we thought you'd like these...
Before you go close icon

Almost every category of media has been hit by the downturn in advertising spending, but print media has been hit hardest of all. Many large weekly and bi-weekly magazines like Forbes and Entertainment Weekly are suffering from significant double-digit drops in ad pages.

Newspapers, in most cases, are not doing any better than last year. Several large papers have folded or sharply cut staff. Gannett's (GCI) earnings, which will be out later this week, should show if the problem is getting even worse.

One of the premier forecasters of advertising trends reports that spending by marketers is worse than it had figured earlier in the year. According toThe Wall Street Journal, Zenith Optimedia "now predicts global ad spending will sink 6.9 percent to $453.2 billion, while U.S. ad outlays will drop 8.7 percent to $156.9 billion." The new statistics are based on observations from the last two quarters.

The news is particularly hard for print media because it has had so little success in moving its content to the internet and building a large revenue base in online advertising.

Newspapers and magazines may be suffering now, but hopes that the situation will be better in the second half of the year are disappearing.

Douglas A. McIntyre is an editor at 24/7 Wall St.

Read Full Story


DJIA 20,743.00 118.95 0.58%
NASDAQ 5,865.95 27.37 0.47%
S&P 500 2,365.38 14.22 0.60%
DAX 11,981.35 13.86 0.12%
NIKKEI 225 19,379.87 -1.57 -0.01%
HANG SENG 24,201.96 238.33 0.99%
USD (per EUR) 1.05 0.00 -0.34%
USD (per CHF) 1.01 0.00 0.35%
JPY (per USD) 113.06 -0.61 -0.53%
GBP (per USD) 1.24 0.00 -0.33%

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners