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New York Times Agonizes As Print Media Ad Revenues Continue To Slide 1 comments, 1 called-out
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New York Times Building, NYC

Print media is hurting - alextorrenegra via Flickr

Print media continues to suffer from declining advertising trends, putting pressure on digital platforms to pick up the slack. According to a recent note by UBS, print ad growth came in at negative 8.9%, below estimates of a 7.7% decline, to the benefit of other media segments which will receive funds flowing out of print media.

“Our caution on the newspaper sector has been driven by the ongoing disappointment in advertising and the growing realization that trends are not improving,” read the first line of a report on the health of the print industry by UBS, as the bank’s research team lowered its price target for one of the sector’s largest players, the New York Times.

Based on data from the Newspapers Association of America, second quarter print ad growth came in below consensus at negative 8.9%. Revenues on classified sections deteriorated substantially, with growth down to negative 10.9% versus estimates of a decline of 5.1%. National print advertising was marginally better than expected, falling 8.8% compared with estimates of a 10% drop.

UBS now estimates full year 2011 print advertising growth to fall 6.6%, while in 2012 they expect a decline of 5%, in both cases worse than their previous expectations. “Given our broader call across media that ad trends are slowing modestly more quickly than the consensus view, our expectation is that newspapers will be impacted and that budgets in other areas of media will be funded to a certain extent by ad dollars moving out of print,” explained the analysts.

With New York Times’ total company advertising declining 4% in the second quarter and no positive revisions on digital ad revenue growth,...
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