US newspaper advertising plummets
Tuesday, April 1st, 2008The astounding drop-off in US newspaper advertising revenues (down 9.4% year on year to $44bn during 2007) can be read three ways. One: the slow down from the credit crunch took hold faster and harder than everyone thought; two: the credit crunch is accelerating the switch out of old, unclickable, untrackable media into new clickable, trackable media; three: this move is being spearheaded by individuals - the classifieds market dropped hardest - down 16.5%, retail only dropped a modest 5%.
Retail is slower to switch because it hasn’t yet totally got to grips with the online model, where customer behaviour, promotions, responses and conversions are tracked and managed online. That will happen increasingly during the coming slowdown.
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