Newspapers Losing Ad Dollars to Internet

• Posted: Friday, July 13, 2007
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• Author: pradhana
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• Filed under: Ad Spending, Internet Advertising, Online Advertising

Among 55 of the leading national US advertisers, newspaper ad spending fell 14.3% in 2006, while Internet ad spending grew 17.8%, according to Wachovia Equity Research analysis.

Financial services firms actually increased their newspaper ad spending in 2006, but all other industries represented in the leading national advertisers decreased theirs.

Telecommunications advertisers moved the most ad spending away from newspapers, to 24% in 2006 from 31.6% in 2005.

Internet advertising would have to grow 15% per year over the next decade to reach the level spent on newspapers — about $35 billion.

Despite the spending difference, that scenario does not have to play out in order for the Internet to "have significant impact on the advertising industry as a whole. It's already having an impact," wrote John Janedis of Wachovia and his team of analysts. [eMarketer]

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