NEW DELHI, August 24: Advertising expenditures for newspapers and their websites aggregated $12.2 billion for the second quarter of 2005, a 2.8 percent year-over-year increase, according to preliminary estimates from the Newspaper Association of America (NAA).
Spending for print ads in newspapers totalled $11.7 billion, up 1.9 per cent versus the same period a year earlier, while ad spending online continued its double-digit growth in the first quarter, increasing by 28.6 per cent from the same period a year ago to $500.7 million.
"Newspaper ad spending for retail and classified continued on a positive trend, and we expect this trend to gain momentum for the second half of the year," said NAA President and CEO John F. Sturm, said in a statement.
"Advertisers also are finding real value in the varied efforts by newspapers to expand their footprints beyond their core print products. One example is online, as newspaper sites continue to rank at the top of the most visited online news sources in the nation. The significant growth in online ad spending is recognition of newspapers' leadership position on the Web."
Among the print categories, classified advertising was up 5.3 per cent to $4.1 billion, retail ad spending rose 1.4 per cent to 5.5 billion, and national (i.e. in the US) advertising was down by 2.8 per cent, coming in at $2.1 billion.
Within the classified category, recruitment advertising climbed 13.7 per cent to $1.3 billion. Real estate ad spending was up 7.2 per cent to $1.0 billion. Automotive dipped 5.3 per cent to $1.1 billion. All other classifieds were up 6.5 per cent to $676 million.
"With a growing labour market, advertisers continue to realise the appeal of print for the classified ad category, and recruitment should continue to do well through the second half of the year," said NAA Vice President of Business Analysis and Research Jim Conaghan.
For the first half of the year, total print and online ad spending totalled $23.2 billion, an increase of 3.2 per cent. Total print ad spending in newspapers increased 2.2 per cent to $22.2 billion. Also among the print categories, classified led the way with a 4.4 per cent gain to $7.8 billion. Retailers increased ad spending in newspapers 2.1 per cent to $10.4 billion, and national ad spending was down 1.8 per cent to $3.9 billion.
In classified for the first six months, recruitment ad spending rose 14.6 per cent to $2.2 billion, and real estate increased 3.9 per cent to $2.1 billion. Automotive classified dropped 4.9 per cent to $2.2 billion and all other classified rose 7.0 per cent to $1.3 billion.
