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Panpa Bulletin : August 2006
38 | PANPA bULLETIN august 2006 CONTENT Newspapers are regaining strength in recruitment and property classified ad- vertising both in print and online, but are weakening in their share of automotive classifieds, accord- ing to the World Association of Newspaper's third annual Digital Classified Survey. The survey, contained in a new StrategyReportfromWAN's'Shap- ing the Future of the Newspaper project', showed that newspapers in developed countries increased overall revenues by 4.2 per cent in 2005 from a year earlier. Revenues from print classified advertising increased by more than five per cent during the pe- riod, a major improvement com- pared to the decline of 12 per cent reported last year, when overall revenues grew by more than four per cent. "The overall figures mask a ma- jor contrast between the growth in recruitment and property ad- vertising on the one hand, and the collapsing categories of auto- motive, travel and private party advertising on the other", the re- port said. "The data suggests that the growth in recruitment advertis- ing was not only cyclical, but for the first time newspapers have in- creased their overall market share in this category. This reversal un- derscores a promising change for the long-term health of the indus- try." The survey found that 6.8 per cent of all classified advertising revenue came from online ac- tivities and that two out of three dollars earned by newspapers online are revenues from classi- fied advertising. But, in terms of revenue, the migration appears slower than expected. In the recruitment sector, news- papers combined print and digit- al share of the advertising market increased from 49 per cent in 2004 to 50.5 per cent in 2005. In property advertising, pub- lishers taking part in the survey reported the highest print revenue increase - 45 per cent - though much of the gain had to do with the property boom in most mar- kets. Both print and digital market share increased year-on-year. Market share of automotive classified advertising, however, was down 12 per cent from the previous year, by far the biggest loss across all categories. The Digital Classifieds Sur- vey, the third in an annual series of six Strategy Reports from the Shaping the Future of the News- paper project, also includes rec- ommendations for newspapers to help build both print and dig- ital classified revenues and bet- ter manage the migration of ad- vertising from print to the web. "The central message of this year's study of classified migra- tion is that complacency is still the largest enemy of the news- paper industry", states the re- port. "While many newspapers have a dominant market position online, the majority still do not have a realistic strategy to face the inevitable migration process: they have so far failed to adjust their business models and mind- set to the new market place." The Digital Trends Survey also found: The internet accounted for 7.6 per cent of recruitment revenues at newspapers that participated in the study, up from 2.7 per cent in 2004 and 1.5 per cent in 2003. White collar jobs tend to be the first recruitment category to migrate to the internet and is the category where newspapers have lost the most over the last few years: 21 per cent of their market share has moved online. Newspapers have managed to hold on to about one quarter of the revenues lost from print in their own online operations. An- other quarter of the revenues have migrated to 'pure play' internet companies, while the remaining revenues have been cost savings to advertisers due to lower rates and fiercer competition online than in print. A further problem for newspapers is their inability to charge anything close to print rates for ads placed online. For regional newspapers, prop- erty advertising has emerged as the least vulnerable category be- cause this is the most 'local' area of advertising. Automotive advertising has been hard hit because auto deal- ers are finding themselves "dis- intermediated" - classified sites and direct sales channels are cut- ting out the need for dealers from the sale of used cars. This poses a dilemma for newspapers: if they embrace the change and offer platforms like direct sales, they are likely to alienate their most important advertisers. The SFN project, which WAN conducts with five strategic busi- ness partners, identifies, analy- ses and publicises all important breakthroughs and opportunities that can benefit newspapers all over the world. Classifed trends improving Revenues from print classifed advertising increased by more than fve per cent during the period, a major improvement compared to the decline of 12 per cent reported last year, when overall revenues grew by more than four per cent. a new survey from Wan shows recruitment and property classifed advertising is coming back to newspapers