By: Jennifer Saba Newspaper online advertising revenue grew 21.1% to $773 million in Q3 compared to the same period a year ago, according to the Newspaper Association of America. In Q2 the organization said that online revenue increased 19.3% to $795 million.
Online revenue in Q3 represented 7.1% of total ad revenue, compared to 5.4% in Q3, 2006.
But total advertising revenue for both print and online in Q3 slid 7.4% to $10.9 billion. Print advertising revenue plummeted 9% to $10.1 billion.
For print, retail advertising revenue fell 4.9% to $5.1 billion. Classified sank 17% to $3.4 billion. National dropped 2.5% to $1.7 billion. Within the classified category, real estate was down 24.4%, automotive fell 17.7%, and recruitment declined 19.7%.
In the previous quarter, total print and online revenue decreased 8.6%, while print only revenue declined 10.2%.
Classified revenue in Q3 was the only category that experienced more severe declines when compared to the previous quarter. In Q2, classified fell 16.4%.
"Broader economic issues are impacting our industry the same way they are impacting other media," John Sturm, president and CEO of the NAA, said in a statement. He explained the collapsing housing market has affected other ad categories like retail and help-wanted.
"Newspaper companies continue to take aggressive measures to prepare for the future during a period of economic challenges for the industry," Sturm added.
Judging by the handful of newspaper companies that have reported October results, Q4 should continue to show ad revenue declines. On Monday, Gannett reported that total ad revenue for the month slipped 5.3%. And today, McClatchy said that total ad revenue in October plunged 9.9%.
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