NAA Expects Ad Gains in 2007

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By: E&P Staff

During a Bear Stearns Virtual Advertising Summit, the Newspaper Association of America estimated that advertising revenue for the industry including print and online in 2006 was virtually flat, up a scant 0.1%. The organization is more positive this year, forecasting that advertising revenue will grow 1.2% due mostly to increases in online advertising, which is estimated to rise 22%. In 2007, all major categories are expected to be flat.

National advertising is expected to plunge 5.4% in 2006. However, the category is forecasted to stabilize this year due to an improvement in wireless advertising. However, movie advertising is expected to remain weak.

Bear Stearns reported that retail advertising, one of the most important, is expected to be up a modest 1% in 2007, according to NAA projections. In 2006, it?s expected that retail advertising barely grew (up 0.2%).

Classified advertising, anticipated to decline 0.9% in 2006, will continue to post decreases in 2007. The category is forecasted to drop 1.3% due to soft recruitment and harsh automotive results.

Bear Stearns? 2007 outlook is more bearish. Lead analyst Alexia Quadrani predicts the industry will post declines in the 1% to 1.5% range this year.

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