Post by Shadow on Nov 1, 2005 13:39:18 GMT -5
'05 Proving To Be Worst Newspaper Year Since Recession
Mediapost Publications
IT'S OFFICIAL: 2005 WILL BE the newspaper industry's worst year since the last ad industry recession. And things aren't looking much better for next year either, according to a top Wall Street firm's report on newspaper publishing. "Sadly, 2005 is shaping up as the industry's worst year from a revenue growth perspective since the recession impacted 2001-2002 period," says the report from Goldman Sachs, adding a warning that meaningful growth in 2006 is "very unlikely."
In particular, national advertising has under-performed, remaining essentially flat this year, as has the retail category, the report said--while classified, both print and online, has shown positive gains so far this year, up 4-5 percent.
The weak ad environment for newspapers has caused Goldman to scale back its 2006 growth forecast to 3.5 percent from 4.0 percent. The note said national ad growth would once again be weakest at 1.0 percent, followed by retail, 2.5 percent, and classifieds at 3.6 percent. The bright spot continues to be online newspaper revenues, which are projected to grow an impressive 25 percent in 2006. Despite this, online will still represent 5.0 percent of total newspaper revenues.
Mediapost Publications
IT'S OFFICIAL: 2005 WILL BE the newspaper industry's worst year since the last ad industry recession. And things aren't looking much better for next year either, according to a top Wall Street firm's report on newspaper publishing. "Sadly, 2005 is shaping up as the industry's worst year from a revenue growth perspective since the recession impacted 2001-2002 period," says the report from Goldman Sachs, adding a warning that meaningful growth in 2006 is "very unlikely."
In particular, national advertising has under-performed, remaining essentially flat this year, as has the retail category, the report said--while classified, both print and online, has shown positive gains so far this year, up 4-5 percent.
The weak ad environment for newspapers has caused Goldman to scale back its 2006 growth forecast to 3.5 percent from 4.0 percent. The note said national ad growth would once again be weakest at 1.0 percent, followed by retail, 2.5 percent, and classifieds at 3.6 percent. The bright spot continues to be online newspaper revenues, which are projected to grow an impressive 25 percent in 2006. Despite this, online will still represent 5.0 percent of total newspaper revenues.