• by Jack Loechner , Staff Writer @mp_research, August 25, 2003

National Newspaper Ad Growth Up 12.8% In Second Quarter Says NAA

According to preliminary estimates from the Newspaper Association of America, newspaper advertising expenditures for the second quarter of 2003 totaled $11.1 billion, an increase of 1.6 percent over the same period last year. Overall, the results are good news for newspapers heading into the second half of 2003.

The national advertising category led the way with a 12.8 percent gain in the second quarter, boosted by gains in telecommunications, factory automotive, and coupon marketing. Retail advertising spending edged up 1.7 percent helped along by increases in food store and building material store ads. Classified slipped 3.9 percent.

Within the classified category in the second quarter, real estate ad spending had the largest percentage gain, up 9.0 percent, while automotive advertising continued to grow, gaining 1.7 percent. Recruitment advertising dropped 15.0 percent as the U.S. economy continued to lose jobs during the quarter, and all other classifieds slipped 11.2 percent.

Total ad spending in newspapers for the first six months was $20.9 billion, up 1.7 percent from the same period last year. For the first half of 2003, retail advertising expenditures gained 2.1 percent, national rose 8.4 percent, and classified dropped 2.2 percent. In the same perios, automotive grew 1.8 percent, real estate increased 8.8 percent, recruitment declined 13.0 percent, and all other classified dropped 4.6 percent to $1.2 billion.

"With economic growth poised to accelerate in the second half of the year, we expect to see larger ad spending increases in the third and four quarters" said NAA Vice President of Business Analysis and Research Jim Conaghan.

2003 QUARTERLY NEWSPAPER ADVERTISING EXPENDITURES
(Preliminary estimates)

		Q1(est)	Q2(est)
NATIONAL
	$Millions	1,755.96	2,078.07
	%Change	3.70%	12.80%
RETAIL
	$Millions	4,670.14	5,332.35
	% Change	2.54%	1.70%
CLASSIFIED
	$Millions	3,454.45	3,648.18
	%Change	-0.22%	-3.90%
TOTAL
	$Millions	9,880.55	11,058.60
	%Change	1.76%	1.60%

% change is over same quarter of previous year
History to 1971.