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March 6, 2002

Real Estate Advertising Props Up Newspapers? Revenues

Inman News Features

Newspaper advertising expenditures for the fourth quarter totaled $12.3 billion, a decrease of nearly 12 percent from the prior-year same period, according to preliminary estimates from the Newspaper Association of America.

But real estate advertising continued to show strength, gaining 6.3 percent to $1.1 billion. Automotive advertising was up 2.4 percent to $1.6 billion, recruitment advertising sank 46.5 percent to $1.3 billion and all other classified advertising was down 5.4 percent to $728 million.

Advertising spending in newspapers last year totaled more than $44 billion, down 9 percent from 2000. Retail advertising fell 3.4 percent to $20.7 billion, national advertising declined 8.5 percent to $7 billion, and classifieds dropped 15.2 percent to $16.6 billion. Real estate advertising increased 10.9 percent to $3.5 billion, automotive advertising declined 2.7 percent to $4.9 billion and recruitment advertising dropped 34.5 percent to $5.7 billion.

"The September terrorist attacks and the ensuing soft economy certainly had a chilling effect on ad spending across all media," NAA CEO John F. Sturm. "However, the newspaper industry is in good shape to move forward when the economy turns the corner, and we're expecting a gradual climb back into positive territory this year."

Copyright: Inman News Service

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