Ad spend on American newspaper websites jumps 18.8 per cent in 2007

San Francisco: According to estimates by the Newspaper Association of America, advertising spending on US newspaper websites increased 18.8 per cent to $3.2 billion in 2007.

However, the 18.8 per cent increase in online ad spending, is way below the 31 per cent jump witnessed by the industry in 2006 and 2005.

It also made up 7.5 per cent of all newspaper advertising spend, the association reported, an increase from 5.7 per cent in 2006.

Amongst the most read websites, according to association data, are sites of the New York Times, The Washington Post, USA Today, The Wall Street Journal, The Los Angeles Times, The Boston Globe, The Chicago Tribune, and The New York Post.

Newspaper publishers in the US have been attempting to increase advertising revenues from their websites because of the sharp decline in print advertising sales.

Contributory factors to that drop in print advertising include the weakened housing market, slowing economic trends, and more importantly, a migration of readers to the web. The economic slowdown, or recession, that the US economy is witnessing presently has dampened ad spends of the traditional large buyers of newspaper advertising, such as the automobile industry, airlines and retailers.

The drop in print advertising sales is the worst in the recorded history of the industry, which began keeping a tab 57 years ago. Revenues dropped9.4 per cent to $42.2 billion, from $46.6 billion in 2006, according to data from the Newspaper Association of America website.

Loss of ads to other media such as cable television and the Web is cited as a significant reason for shrinking newspaper ad sales. Classified advertising dropped 17 per cent as the weakened housing market ensured a reduction in real-estate ads by 23 per cent.