WASHINGTON, DC—(Marketwired – Nov 25, 2017) – Newspapers in the United States are expected to lose more than $50 billion over the next five years as traditional advertising revenues are projected to decrease, according to a new study.
The Newspaper Association of America (NA) released the report, published today, which is based on the data collected by the Federal Trade Commission (FTC).
The research shows that the biggest threat to traditional advertising is the decline in print advertising revenue.
In 2017, newspaper revenue declined by a whopping $43 billion.
The decline was driven primarily by digital ad sales and mobile devices.
The NA report also found that digital ad revenue declined 17.4% in 2017, while print revenue decreased 9.4%.
While newspapers may be losing some advertising revenue, the decline is offset by a rise in digital ad revenues.
In 2016, digital ad ad revenue grew by nearly 30% over the previous year, the NA report found.
However, digital revenue still accounts for less than half of print revenue.
The most worrisome news for newspapers is the loss of advertising revenue coming from traditional broadcast networks.
According to the NA, in 2017 print ad revenue was $1.9 billion less than digital ad, while television advertising revenue declined 8.4%, which is the largest decrease in the industry since the recession of 2008.
The NA said that television advertising is expected to decline by nearly 10% in 2021.
Meanwhile, digital advertising revenue grew 15.6% from 2016 to 2017, according the NA.
The total digital advertising market is expected increase by more than 70% in 2020.
According to the report’s findings, digital is expected, in 2021, to account for only 17% of the overall print advertising market.
That means that for every dollar a newspaper spends on digital advertising, it is receiving about $0.36 in advertising revenue in 2021 alone.
Digital advertising revenue is growing faster than print advertising, which means that newspaper publishers can expect their paper to lose $2 billion in 2021 in the US.
According the NA’s report, traditional print advertising will decrease by $3.6 billion in the same time frame.
The National Association of Broadcasters (NAB) released a similar report this year that found digital advertising was expected to grow by 18% in the next three years, or $4.6 million in 2021 dollars.
However that report did not look at digital advertising across multiple platforms.
The most worrisome sign for the NAB is the increase in digital advertising.
The agency said digital advertising will account for about one-third of the total advertising market in 2021 and would continue to grow at an average rate of 16% per year.
The NAB also found, however, that digital advertising revenues were expected to increase by 6.4 billion dollars in 2021 over 2020.
The overall digital advertising share in the market will increase from 21.3% in 2018 to 28.1% in 2019, and will be 24.6%.
The NA reported that digital revenue grew 5.2% from 2017 to 2021, with print revenue decreasing by 2.8%.
The NA report did note that digital growth has slowed since the financial crisis of 2008, but said that digital advertisers have had an “exponential growth in digital spending in recent years.”