Greg Bensinger of Bloomberg writes about the final nail in the coffin for U.S. newspapers- declining ad revenues. Not just declining ad revenues but for the first time ever U.S. advertisers will spend more on digital marketing than on print this year. Research company Outsell Inc. studied the trend that spells doom for print news media.
Print will make up 30 percent of total advertising and marketing spending in 2010, compared with 33 percent for digital, Outsell analysts Chuck Richard and Sheila King wrote in a report released today. Last year, print spending accounted for 32 percent of the total, compared with 30 percent for online.
Spending on Web sites and other digital media will rise 9.6 percent to $119.6 million this year, Burlingame, California- based Outsell said. Print expenditures will drop 3 percent to $111.5 billion. Total ad spending will jump by 1.2 percent to $367.9 billion from $363.5 billion last year.
Advertisers will reduce spending on marketing for events, and on television, radio and movies this year. TV, radio and movie expenditures will drop by 3.8 percent to $84.6 billion, Outsell said.