McClatchy reported that total revenues decreased 9.9% in October 2007, compared to the same month last year. This steep decline was due, in part, to the downturn in the real-estate market--especially in Sunbelt areas, including California and Florida, where the slowdown translates into fewer real-estate classified dollars.
A precipitous drop of 29.4% in real-estate classifieds contributed to the overall drop of 19.6% in the classified arena. The slowing real-estate market depresses certain kinds of retail advertising, as fewer people are in the market for appliances and home furnishings. McClatchy's national and retail ad revenues are down 8.9% and 2.5%, respectively. Year-to-date, the company's ad revenues are down 8.5%.
Gannett's October results are similarly grim, with a 6.8% decline in overall revenues compared to October 2006. Newspaper ad revenues in particular fell 5.3%--due in part to a 9.7% drop in classified revenues, which saw real estate fall 13.5%. Gannett's local community newspapers suffered the most, with classifieds down 15.6% and real estate specifically falling 23.6%. Gannett's local and national advertising both dropped 2.3% in October.