Report Predicts 4 More Years of Newspapers Hemorrhaging Ad Revenues

(Photo credit: swanksalot)

The good news is that digital versions of newspapers are beginning to attract more readers. The bad news, according to the annual PricewaterhouseCooper's Global Entertainment and Media Outlook report ("GEMO") released this week, is that newspapers' revenues overall will continue to plunge through at least 2017.

According to an Ad Age article about the report, even in the face of climbing circulation figures, declining advertising at a compound annual rate of 4.2 percent means overall newspaper revenues are forecast to drop at a combined annual growth rate of 2.9 percent between 2013-2017.

The Ad Age piece cites Newspaper Association of America 2012 figures showing newspaper Web sites attracted more than 100 million unique visitors. The GEMO report predicts a 9.7 percent compound annual growth rate in digital advertising over the next four years that, unfortunately, will largely be negated by a 7.8 percent compound annual drop-off in print edition ads.

Digital newspaper ads are expected to generate $5.5 billion in revenues by 2017, compared to $12.8 billion in print ads, according to the GEMO study.

API: R.I.P

Newspaper Association of America (Photo credit: Wikipedia)

After 66 years, the Reston, Va.-based American Press Institute ("API") has terminated its staff and will merge with the Newspaper Association of America ("NAA"), The Washington Post reported.

Founded in 1946 by Providence Journal editor Sevllon Brown and initially headquartered at Columbia University, the nonprofit API ran programs that attracted journalists nationwide. With the print journalism industry in the doldrums, contributions from news organizations have declined and program attendees dwindled, necessitating API eliminating its eight full-time staffers, and one part-time employee.

According to the Post article, API and NAA will merge their endowments.