Newspaper Ad Revenues Fall to 60-Yr. Low in 2011
The decline in newspaper ad revenues to a 60-year low is amazing by itself, but the sharp decline in recent years is pretty stunning. Last year's ad revenues of about $21 billion were less than half of the $46 billion spent just four years ago in 2007, and less than one-third of the $64 billion spent in 2000.
And even when online advertising is added to the print ads, the combined total spending for print and online advertising in 2011 will still only be about $22.6 billion, just slightly more than the $22.5 billion spent on print advertising in 1954.
Economic Lesson: It's another one of those huge Schumpeterian gales of creative destruction.
Update: Here's another perspective: It took 50 years to go from about $20 billion in annual newspaper ad revenue in 1950 (adjusted for inflation) to $63.5 billion in 2000, and then only 11 years to go from $63.5 billion back to about $20 billion in 2011.