Magazine article Editor & Publisher

Spending on U.S. Daily Newspapers

Magazine article Editor & Publisher

Spending on U.S. Daily Newspapers

Article excerpt

Gains seen in five-year forecast

Veronis Suhler predicts a 3.4% rate

Newspapers will resume growth in the next five years, but at a slower pace than in recent years, according to a forecast set for release today.

Advertising and circulation spending on U.S. daily newspapers is expected to decrease 0.9% this year, but increase by a compounded annual rate of 3.4%, to $70 billion, by 2005, predicts New York-based media merchant bank Veronis Suhler in its annual "Communications Industry Forecast." From 1995 to 2000, spending on dailies grew at a compounded annual rate of 5.3%.

The future of retail ad spending appears bright. Aided by small advertisers and growing national chains, retail is expected to rise by a compounded annual rate of 4.5% from 2001 to 2005, versus 3.4% in the earlier five-year period.

The outlook for classified and national ads is dimmer. Classified ads over the next five years are expected to grow 1. …

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