By: Jennifer Saba Banc of America Securities analyst John Janedis suggests that online search engines are picking off advertising dollars from traditional newspapers. "1Q earnings from Yahoo and Google were illustrative of the secular shift of ad dollars from offline mediums such as newspapers to major online properties," said the report issued today.
To bring home the point, Q1 national newspaper ad revenue grew 3.4% compared with Google and Yahoo, which increased 54% in the same period.
Like many others, Janedis is predicting the next FAS-FAX from the Audit Bureau of Circulations will show more declines, which in turn could further "accelerate the shift away from traditional media." Also, April ad trends are not showing any signs that growth will take off, according to the report.
The report also mentions that online job postings for April (through week four) on newspaper Web sites are mixed. The New York Times is up 38%, The Boston Globe increased by 22%, The San Diego Union-Tribune is up 1.9%, the St. Louis Post-Dispatch is down 0.6%, and the New Haven Register is up 38%.
Online real estate postings for April (through week two) on newspaper Web sites are also mixed. The Times is up 22%, the Globe is up 54%, the Union-Tribune is up 88%, the Post-Dispatch is down 34%, and the Register is up 18%.
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