Newspapers Lose Most Ad Dollars to the Web
Posted by Universal Ad at Monday, July 16, 2007 11:45 AM and is filed under Advertising,NEWSPAPERS,Web,Budget 
This probably won't surprise anyone that much but according to a new report from Wachovia Equity Research as reported in BrandWeek, the ad budget shift in 2006 was most pronounced from newspapers to the Web.
All together, newspapers lost 14.3% in ad dollars in 2006, online ads gained 17.8%, TV gained 4.4% and all the other measured channels fell 1.1%. Of the verticals studied, only one (financial services) increased their newspaper ad spend but four (telecommunications, automotive, media and tech/Internet) increased their TV ad budgets.
The situation in our retail space was much less dramatic based on the 16 companies Wachovia studied in the category. Newspaper ad spending only dropped 1.8% (29.8% to 28%) with Macy's showing the largest shift (from 66% to 60%).
All in all, while Internet advertising has greatly impacted the industry, there is still quite a ways to go before we reach parity. Wachovia estimates that Internet advertising would have to grow 15% per year over the next decade to reach the ad dollars spent on newspapers (or about $35 billion).
All together, newspapers lost 14.3% in ad dollars in 2006, online ads gained 17.8%, TV gained 4.4% and all the other measured channels fell 1.1%. Of the verticals studied, only one (financial services) increased their newspaper ad spend but four (telecommunications, automotive, media and tech/Internet) increased their TV ad budgets.
The situation in our retail space was much less dramatic based on the 16 companies Wachovia studied in the category. Newspaper ad spending only dropped 1.8% (29.8% to 28%) with Macy's showing the largest shift (from 66% to 60%).
All in all, while Internet advertising has greatly impacted the industry, there is still quite a ways to go before we reach parity. Wachovia estimates that Internet advertising would have to grow 15% per year over the next decade to reach the ad dollars spent on newspapers (or about $35 billion).
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