Contrary to the popular belief that newspapers, perhaps more than any other medium, are to suffer as the internet takes hold, investment bankers Veronis, Suhler & Associates are saying the U.S. newspaper industry has begun something of a rebound. VS&A recently said that circulation increases, although modest - 0.1% - are likely for the first time in 12 years, and advertising revenue is expected to continue to post gains. As the U.S.'s single-largest advertising medium, with $52.2 billion, or 32% of all ad dollars, the newspaper industry is expecting a 6.5% compound annual increase in ad revenue through 2004.
Why? According to VS&A, adults over 35 years old are far more likely than their younger counterparts to read newspapers. And their numbers are expected to jump 6.8% in the next five years, compared to only 1.2% for those under 35. The economy has been robust and advertisers have spread substantial sums across all media types - national ad dollars increased 17.7% last year and increases of 8.7% annually are forecast through 2004. The increase for newspapers is forecast total 37% by 2004, as against a 5.8% increase this past year.