• by February 25, 2003

Newspaper advertising expenditures for the fourth quarter of 2002 totaled $12.8 billion, a 4.4% increase over the same period a year earlier, according to preliminary estimates from the Newspaper Association of America.

Retail advertising spending rose 3.8% to $6.1 billion, national ad spending increased 12.4% to $1.9 billion and classified rose 2.2% to $4.8 billion.

Within the classified category in the fourth quarter, real estate ad spending led the way with an increase of 6.9% to $1.1 billion. Automotive gained 5.7% to $1.7 billion, recruitment advertising dropped 9.1% to $1.2 billion and all other classifieds were up 7.6% to $784 million.

"The fact that retail, national and classified advertising all showed gains in the fourth quarter bodes very well for the newspaper industry," said NAA President and CEO John F. Sturm. "Advertisers continue to depend on newspapers to deliver their message. Whether it's a large company reaching consumers with a branding campaign or an individual selling a used vehicle, they count on newspapers as an effective and cost effective medium."

Overall for the year 2002, retail advertising expenditures edged up 1.5% to $21 billion, national rose 2.9% to $7.2 billion and classified dropped 4.4% to $15.9 billion. Total 2002 ad spending in newspapers was $44.1 billion, down 0.5% from 2001.

Within the 2002 classified category, automotive grew 5.5% to $5.2 billion, real estate increased 4.5% to $3.7 billion, recruitment declined 23.1% to $4.4 billion and all other classified gained 6.8% to $2.7 billion.

"The slowly improving economy helped boost our results in the fourth quarter," said NAA Vice President of Business Analysis and Research Jim Conaghan. "As business activity and consumer confidence gradually accelerate during 2003, it will secure the foundation of the advertising recovery."