Advertising Overview for 1992: Newspaper Rep Firms Give Their Forecasts

By Kerwin, Ann Marie | Editor & Publisher, January 4, 1992 | Go to article overview

Advertising Overview for 1992: Newspaper Rep Firms Give Their Forecasts


Kerwin, Ann Marie, Editor & Publisher


Advertising overview for 1992

Newspaper rep firms give their forecasts

The forecasts by newspaper representative firms for 1992 are not very encouraging for increased revenue.

Most categories are flat or down, with the exception of financial and some aspects of the travel industry.

The following summaries have been included to give the most comprehensive overall picture. The firms base their outlooks primarily on their own client lists, so some focus on information gathered from larger papers, and some will focus on the smaller papers' perspective. Another important point to keep in mind while reading these outlooks is that not all the companies look at the same categories, nor do they prepare their reports according to one format.

Categories that were not covered by at least two of the companies were omitted.

Overview

Branham Newspaper Sales: Newspapers are experiencing their worst year in three decades. The problems brought about by the retail slump were exacerbated by declines in classifieds.

Many are predicting that newspapers will soon lose their status as the largest advertising medium in the United States. The industry has still not adequately addressed the targeted audience issue, though newspapers may gain some promotional advertising dollars through the Newspaper Advertising Bureau's Newspac, a quarter-inch-thick sample packet that can be inserted in newspapers without breaking or spilling.

Competition from the computer-based information services available to homes through phone lines and the RBOCs in the near future has had newspapers lobbying this year.

Total newspaper expenditures were off over 7% through the first six months of this year, and if this continues, expenditures will be down over $2 billion for the year.

Although most believe things will be a bit better next year, it is hard to predict when things will turn around. National advertising will not improve next year. In fact, a 3% decrease is predicted. While there is potential for increased national advertising in the long term, advertisers will continue to be reluctant to pay the national rates.

Cresmer, Woodward, O'Mara & Ormsbee: The prolonged recession has prompted changes in the advertising industry. Traditional advertisers find themselves forced to rethink and re-evaluate their objectives and strategies. Budgets will be leaner but goals will be meaner and more ambitious. Advertisers will be demanding more from their ad agencies, which will be compelled to work in the confines of these tight budgets.

Newspapers will find themselves fighting for share points in a competitive arena of other mass media. Newspapers will have to position themselves as a creative, innovative medium.

An emphasis should be placed on programs designed to enhance the return on investment for advertisers. These programs will encompass the entire spectrum of the industry to take advantage of promotional strategies, marketing, and creative selling.

A proactive approach will improve newspaper standing in the ad agencies and help achieve revenue growth.

Landon Associates: It is time for newspapers to focus on maintaining the basics that make newspapers an outstanding medium for advertisers, while, at the same time, aggressively developing new revenue streams.

Five major trends should be kept in mind: Retailers will more and more favor advertising media that provide strong value-added and sales service support; sales promotion expenditures will continue to grow at expense of media advertising expenditures; regional influence of companies, ad budgets and decisions continue to create new sales opportunities; networking of newspapers to meet advertisers' needs becomes more and more important; definition by rate, national, retail, or classified, is less and less meaningful.

Do not look for a boom, but the recovery will be strong enough to make the next year-and-a-half much better than the last for most industries. …

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