The Sky is Falling on the Newspaper Industry

Or that's at least what the media wants you to think. In response to a just released report on the Q1 2009 newspaper advertising sales figures, media outlets are brimming with apocalyptic predictions on the future of the industry. The numbers are ugly. The figures show declining advertising revenue across the board. It's not like industry analysts hadn't been foreseeing such pullbacks, but the numbers are more dismal than almost anyone could have predicted.

It must be noted that our economy has been in one of the worst recessions since the Great Depression. The ominous report, however, still has blown across the world of print today as though it were a category 5 hurricane that instantly materialized off the coast. When you consider that advertising sales numbers fell by 28.3% across the entire industry during the first quarter of 2009, with revenues declining by more than $2.6 billion from the previous year, the strain on newspaper outlets throughout the US becomes ever more palpable. It's evident that newspapers that fail to adapt to changing consumer behavior will be swept away under a sea of red ink.

Key Statistics from the Report

- Real estate classified advertising slumped 45.6% to $336.9 million.
- Automotive classified advertising swooned 43.4% to $332.8 million.
- National advertising slipped 25.9% to $1.1 billion.
- Retail advertising stumbled 23.7% to $3.3 billion.
- Other classified advertising slid 16.5% to $587.7 million.

For those who were attempting to turn a blind eye to the growing pressure facing a once steadfast industry, they are now confronted with the outcome of missed opportunities. The industry's failure to see beyond a traditional media model is why companies that were once seen as media giants are ceding revenue to online advertising networks and more efficient, targeted platforms.

It's not that newspapers will cease to exist because of the dismal advertising sales figures cited in this report. The medium will survive in one way or another, either in an alternate form or as a gateway to a deeper media experience. The jury is still out on what newspapers will look like a decade from now. I, for one, think the newspaper industry's future lies in flexible electronic displays (e-ink) and content that moves seamlessly between devices.

If anything, the fact that these first quarter numbers are much worse than what was estimated, should push newspaper operators to be more aggressive, examine new formats, establish partnerships with online properties that could add value to clients' advertising buys, unshackle content in an attempt to spread the publication's reach, experiment with mobile technologies, empower staff members to approach their positions with an entrepreneurial mindset, expand into complementary sales channels (digital signage , anyone?), and leverage the talents and experience of employees to develop new properties and foster transformative ideas.

Just because Q1's revenue figures for the industry are terrible, doesn't mean that newspaper professionals should raise the white flag. It doesn't have to be a foregone conclusion that advertising sales will continue to decline quarter over quarter. Newspapers should look beyond their newsrooms and physical products and work to reimagine themselves. This report isn't a falling boulder that the industry can't get up from. It's an indication of the heavy lifting that lies ahead.

(Statics via the Newspaper Association of America)

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