According to recently released preliminary data by the Newspaper Association of America, circulation revenue for U.S. newspapers recorded a second consecutive year of growth, rising 3.7% to $10.87 billion in 2013. Overall, total revenue for the multiplatform U.S. newspaper media business amounted to $37.59 billion in 2013, a slight decline from $38.60 billion in the previous year.
US Newspaper Media Revenue ($Billion; % Change Y-O-Y 2013)
Source: Newspaper Association of America, April 2014
Proceeds grew in digital advertising, direct marketing, and newly developing sources, while income from traditional print advertising channels declined. This trend, says the report, reflects an industry evolving its business model by taking advantage of developments in technology, consumer behavior, and advertiser interest, to grow audience and diversify its revenue stream.
“Newly-developing and other sources,” those outside of advertising and circulation, generated about 8% share of revenues, growing 5% year-over-year to $3.15 billion. The new sources include digital agency and marketing services (up 43%), event marketing (+5%), e-commerce (-4%), commercial printing (+4%), distribution of other products to consumers (-2%) and income from royalties, licensing, rental, waste and scrap sales (+3%).
Key findings from the study include:
Revenue outside of advertising and circulation, from newly-developing and other sources, accounted for just over 8% of total newspaper media revenue, says the report. Digital agency and marketing services, which some newspapers established in 2012 and others launched in 2013, jumped 43%. Event marketing dollars rose 5% while e-commerce earnings slipped 4%. Dollars gained from commercial printing increased 4%, while revenue from distribution of other products to consumers dipped 2%. Other revenue activities such as income from royalties, licensing, rental,waste and scrap sales, climbed 3%.
N.B. NAA projections are based on a broad sample that includes public and private company data collected on a confidential basis. The data are normalized for a 52-week reporting period in both years
For additional information about the NAA projections, please visit here.