Online ad spend surging

Posted on June 6, 2006 
Filed Under Uncategorized

From MediaPost:

US newspapers’ online ad revenue surged 35% to US$613 million in the first quarter from the first quarter of 2005, according to a new report by the Newspaper Association of America.

The online increase marked the eighth consecutive quarter of growth, according to the organization. Last year, online ad revenue totaled US$2.027 billion, marking a growth of 31.48 percent from 2004.

Expenditures on print ads, by contrast, remained flat in the first quarter. Print ad revenues came to US$10.5 billion, up 0.3 percent from the same time last year.

Overall, print and online ad revenues combined totaled US$11.1 billion–reflecting an anemic year-over-year growth of 1.8 percent.

The NAA doesn’t break down Web spending by category–but other analysts, including Merrill Lynch and Borrell Associates, have said that classified ads make up the bulk of newspapers’ online ad revenues.

Print classifieds in the real estate category grew to US$1.1 billion–26.3 percent more than last year. Recruitment ads also grew to US$1.1 billion, marking a 2.3 percent increase. Auto ads, however, fell to US$940 million–a drop of 14.5 percent. Classifieds in other categories increased 11.9 percent to US$702 million.


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