Online newspaper advertising keeps growing

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New York, Online newspaper advertising keeps growing at a nice clip, according to the latest data from the Newspaper Association of America(NAA). During Q4 of last year, online advertising advanced 35% to $745.5 million. In the previous quarter, online advertising increased 23% to $638.3 million.

While newspaper Web sites continue to make revenue gains, it has not been enough to offset the declines in print advertising, which fell 3.7% to $13.2 billion during Q4. Taking online advertising revenue into account with print, Q4 ad revenue slipped 2.2% to $14 billion.

Online ad revenue still represents a small piece of overall ad revenue though that percentage is expected to rise. John Sturm, NAA president and CEO, said in a statement "the latest data show that on average, spending on newspaper Web sites accounted for 5.4% of all newspaper ad spending."

For print advertising during Q4, the national category declined 3.8% to $2.1 billion. Retail was down 0.9% to $6.3 billion. Classified plunged 7.1% to $4.9 billion. Within the classified category, real estate is starting to show strains slipping 2.3% to $1.5 billion. Recruitment fell 13.7% to $1.3 billion and automotive dropped 11% to $1.2 billion.

For the full year, ad spending in printed weekday and Sunday newspapers and online edged down to $49.3 billion from $49.4 billion, the association said. Total print advertising for the year fell 1.6% to $46.6 billion.Local retail print advertising dipped 0.3 percent, totaling $22.1 billion versus $22.2 billion in 2005. National advertising fell 5.1 percent to $7.5 billion.

Print classified advertising, facing competition from online job-search businesses such as Monster Worldwide Inc. and Yahoo Inc.'s HotJobs, slipped 1.9 percent to $17 billion.Within the classified category, print real estate ads were up 11 percent to $5.2 billion, help-wanted ads were down 7.5 percent to $4.7 billion and auto ads plunged 12.8 percent to $4 billion.

Online advertising revenue for 2006 was up 31.5% to $2.7 billion.

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