GRIM Year Predicted for Newspapers - Recruitment Classifieds Down Near 20%

Found this online.... When the print ads start drying up you can be sure the online conterparts to these print publications will be coming up with new and novel strategies to get in your wallet. This is a time when we all must be very careful in our advertising spends. Look at your metrics, talk to your industry colleagues, demand solutions that meet your needs - and by all means do not be afraid to walk away. Remember - you have the power now!


http://publications.mediapost.com/index.cfm?fuseaction=Articles.showArticleHomePage&art_aid=74025


Goldman Sachs Predicts Grim Year For Newspapers
by Erik Sass, Thursday, Jan 10, 2008 7:45 AM ET
NEWSPAPERS WILL TAKE IT ON the chin in 2008, according to analysts with Goldman Sachs, who warned Wednesday of a potential double-whammy, as the industry's secular downturn converges with a broader economic slowdown. Overall, they forecast a 7.9% decline in revenue, a much more substantial drop than their earlier prediction of just 2.6%.

The predicted 7.9% drop is especially gloomy as it comes after several years of losses, compounding a 1.8% decline in 2006 and a roughly 8% drop in the first three quarters of 2007 compared to the same period in 2006 (fourth-quarter figures aren't yet available).

As always, the collapse in classifieds leads the way. In a note to clients, GS said: "We expect the classified categories to be very weak with the real estate, help wanted and auto categories particularly sensitive to broader economic activity." All three categories are also suffering from intense competition from the Internet.

The downturn in the housing market has led to a meltdown in real-estate classifieds in particular, with overall real-estate classifieds falling 24.4% in the third quarter of 2007, compared to 2006. Recruitment is down 19.7%, and automobiles 17.7% in the same period.

As a result, GS cut earnings forecasts for the New York Times Company, McClatchy, Gannett, Belo, Journal Communications, and E.W. Scripps.

 del.icio.us  Stumbleupon  Technorati  Digg 

 

What did you think of this article?




Trackbacks
  • No trackbacks exist for this entry.
Comments

Leave a comment

Submitted comments will be subject to moderation before being displayed.

 Enter the above security code (required)

 Name (required)

 Email (will not be published) (required)

 Website

Your comment is 0 characters limited to 3000 characters.