Do people read the newspaper anymore? That is the question many newspaper publishers across America are asking themselves on an ever more frequent basis.
According to a recent article published in PRWeek Magazine, the outlook for newspapers is going from bad to worse. Barraged from all sides by online community websites like Craigslist.com which offer free local classifieds, to pay for ad sites such as Autotrader.com which offers ads for new and used cars and Realtor.com which offers over 3 million home listings nationwide, classified ad revenue is quickly drying up for the traditional newspaper.
The numbers are not looking good for the largest players in the industry. At Gannett, the largest U.S. newspaper publisher as measured by total daily circulation, its USA Today advertising pages are down 17% while real estate ads in its community papers are off 20%. News Corp is also feeling the pinch with Dow Jones classifieds down 14% and overall ad revenue has fallen 20%.
Even the most famous paper in the world, the New York Times, has fallen on tough times as earnings per share for parent company New York Times Company have dropped by more than half in the second quarter.
The future does not look any brighter for newspapers as a report by Fitch Ratings states. "As participants gain comfort with online media, they will be less likely to return to the print product in the future."
To their credit, most major newspapers have created online editions to compliment their traditional print publications, but so far, the newspaper industry has not yet come close to making its rising online ad revenues equal to their falling print ad revenues. As PRWeek put it, if this trend continues, newspapers may end up going the way of the "horse and buggy in the new media Daytona 500."
Trend Hunter has been covering the endangerment of print media for a while, watching publications like Business 2.0 magazine shut down:
Endangered Print Media
The End of the Newspaper? (Follow-Up)
Trend Themes
1. Decline of Print Media - There is a decline in print media readership, creating an opportunity for digital news platforms to dominate the market.
2. Shift to Online Advertising - As classified ad revenue dries up, there is an opportunity for online advertising platforms to fill the gap left by traditional newspapers.
3. Transformation of News Consumption - With the rise of online media, there is an opportunity for innovative news delivery models to cater to the changing habits of consumers.
Industry Implications
1. Digital News Platforms - Digital news platforms have the potential to replace traditional print media and capture the growing audience for online news consumption.
2. Online Advertising Platforms - Online advertising platforms have the opportunity to capitalize on the decline in print ad revenue and offer targeted advertising solutions to businesses.
3. Innovative News Delivery Models - New and innovative news delivery models can cater to the changing preferences of consumers who are shifting towards online news consumption.