NEW DELHI, August 26: Global newspaper advertising revenues have seen their largest increase in more than five years. Ad revenues increased by 5.3 per cent in 2004 compared to 2 per cent the previous year, according to World Press Trends 2005, was released by the World Association of Newspapers (WAN) recently.
Although newspaper advertising revenues are increasing in many markets, newspapers' share of the world ad market declined marginally from 30.5 per cent in 2003 to 30.1 per cent in 2004. But newspapers remain the world's second largest advertising medium, after television, and are expected to retain this position for many years, the report said.
"Despite the incredible competitive challenges in the advertising market, newspapers have more than held their own and their revenues are strongly on the increase again," said Timothy Balding, director-general of the Paris-based WAN.
Internet traffic grew 32 per cent last year and 350 per cent over five years for the newspaper websites for which data was available over several years. Internet advertising revenues continue to grow rapidly, and were up 21 per cent in 2004, the highest growth for five years.
Sixteen countries and regions saw newspaper advertising market share growth in 2004: Argentina, China, Colombia, Czech Republic, Hong Kong, Iceland, Ireland, Kuwait, Malaysia, Pakistan, Poland, Romania, Slovenia, Taiwan, United Arab Emirates and Vietnam. Over five years, newspapers in 19 countries and territories saw increased market share: Argentina, Belgium, China, Colombia, Czech Republic, Hong Kong, Iceland, Ireland, Kuwait, Lebanon, Malaysia, Norway, Poland, Puerto Rico, Slovenia, Taiwan, Thailand, United Arab Emirates and Vietnam.
Newspaper advertising revenues in the US, by far the largest newspaper advertising market in the world, increased by 3.93 per cent in 2004, compared to a 1.9 per cent increase in 2003 and a drop the two previous years.
In Japan, ad expenditures in newspapers showed the first positive growth -- up 0.01 per cent -- after three years of decline. Neighbouring China saw increase in advertising revenues of 29 per cent last year, more than double the growth in 2003, and 116 per cent over five years.
Newspaper markets in the European Union saw a 4 per cent increase in newspaper advertising revenues in 2004, though they are still down 16 per cent from the boom year of 2000.
Sixteen of 17 countries for which data was available showed increases in advertising revenue in 2004: Czech Republic, +14.6 per cent; Estonia, +11.1 per cent; Finland, +5.58 per cent; France, +2.47 per cent; Hungary, +18.14 per cent; Ireland, +15.99 per cent; Italy +2.42 per cent; Latvia, +11.4 per cent: Lithuania, +47.2 per cent; Luxembourg, +2.85 per cent; Netherlands, +10.16 per cent; Poland, +27.6 per cent; Slovakia, +26.52 per cent; Spain, +8.07 per cent; Sweden, +1.55 per cent; and the United Kingdom, +0.17 per cent. Greek newspapers saw a decline of -22.7 per cent in 2004.
Over five years, advertising revenues were up in nine of the countries for which data was available: Czech Republic, +49.4 per cent; Estonia, +29.03 per cent; Hungary, +44.56 per cent: Latvia, +45.51 per cent; Lithuania, +93 per cent; Luxembourg, +10.6 per cent; Poland, + 98.6 per cent; Netherlands, +18.08 per cent; and Slovakia, +114.85 per cent.
Advertising revenues declined in the five-year period in seven EU countries for which data was available; Finland, -3.22 per cent; France, -23 per cent; Greece, -0.26 per cent; Italy, -16.33 per cent; Spain, -6.28 per cent; Sweden, -15.8 per cent; and the United Kingdom, -6.31 per cent. In Russia, newspaper advertising revenues increased 31 per cent in 2004, compared with a 17 per cent increase in 2003. In Australia and New Zealand, revenues were up 7.6 per cent and 14.7 per cent respectively over one year.
The survey, which WAN has published annually since 1986, this year includes information on all countries and territories where newspapers are published -- 215 in all. The Paris-based WAN, the global organisation for the newspaper industry, defends and promotes press freedom worldwide. It represents 18,000 newspapers; its membership includes 72 national newspaper associations, individual newspaper executives in 102 countries, 11 news agencies and nine regional and worldwide press groups.
