01 June 2010

U.S. Newspaper Ad Revenue falls 10 Percent in 1Q

Bloomberg / Business Week

Advertising revenue at U.S. newspapers fell 10 percent to $6 billion in the first quarter from the same period last year. That is the lowest rate of decline in more than two years.

The statistics released Thursday by the Newspaper Association of America are the latest sign that the industry's financial woes may be easing in the fourth year of an advertising downturn that has triggered bankruptcy filings and dramatic cutbacks in staff.

Newspapers traditionally have relied on advertising for about 80 percent of their revenue. But recently they have been raising their subscription and newsstand prices to counter a marketing shift that has driven more spending to the Internet.

Ad revenue has now fallen at U.S. newspapers in 13 consecutive quarters compared with the previous year.

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