• by Jack Loechner , Staff Writer @mp_research, June 14, 2006

According to preliminary estimates from the Newspaper Association of America, advertising expenditures for newspaper Web sites increased by 34.9 percent to $613 million in the first quarter versus the same period a year ago. Print and online expenditures together totaled $11.1 billion for the first quarter of 2006, a 1.8 percent year-over-year increase. Spending for print ads in newspapers totaled $10.5 billion, up 0.3 percent versus the same period a year earlier led by strong gains in real estate advertising.

NAA President and CEO, John F. Sturm, said "Newspaper publishers are winning on the Web and their efforts to attract visitors, build leading Internet properties and monetize their online investments are being recognized by advertisers and consumers - as shown by a full two years worth of outstanding consecutive gains. Meanwhile, newspaper print advertising continues to hold its own in the face of overall ad softness, reflecting our industry's ongoing dialogue with the advertising community to demonstrate the enduring value of newspapers' reach and engagement with consumer audiences."

Among the print categories:

• Classified advertising was up 4.7%
• Retail ad spending was down slightly by 1.0%
• National advertising was down by 4.8%

Within the print classified category,

• Real estate advertising climbed 26.3%
• Recruitment advertising increased 2.4%
• Automotive was down 14.5%
• All other classifieds were up 11.9%

James Conaghan, NAA Vice President of Business Analysis & Research, pointed out that "Real estate was particularly strong in what is otherwise a seasonally soft quarter for print, as newspapers continue to demonstrate local market leadership... (while) Internet revenues... are beginning to gain more critical mass."

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