Online Ad Revenue Surges 24% in Q4, Amid 4.7% General Increase

By: E&P Staff Advertising revenue for newspaper Web sites grew 24% to $416 million in the fourth quarter, compared to the year-ago period, while print newspaper advertising revenue increased 4.2% to $13.7 billion, according to the Newspaper Association of America. Combined, advertising revenue advanced 4.7% to $14.1 billion.

"Fourth quarter ad performance was solid across the three major categories in what has otherwise been a spotty advertising market recovery," said John Sturm, president and CEO of NAA, in a statement. "Of particular note is the strong growth in newspaper Web site advertising, which we are reporting separately for the first time."

For the quarter, classified advertising revenue for the industry rose 5.2% to $5.1 billion. Employment advertising was up 19.1% to $1.4 billion. Real estate increased 7.7% to $1.3 billion. Automotive dropped 6.2% to $1.6 billion. National was up 3.6% to $2.2 billion as was retail, up 3.7% to $6.5 billion.

In 2004, print advertising revenue grew to $46.7 billion, up 3.9% over 2003. Internet advertising revenue increased 26.7% to $1.5 billion -- a new record, according to the NAA. Combined, advertising revenue was up 4.5% to $48.2 billion.

Classified advanced 5.1% to $16.6 billion. National rose 3.7% to $8.1 billion and retail increased 3.1% to $22 billion. Within the classified category, employment was up 15.1% to $4.6 billion, real estate increased 6.8% to $4.2 billion, and automotive decreased 3.4% to $5 billion.


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