It’s been some time since I’ve written about the decline of the daily newspaper given that it’s about as compelling a story as the White Sox languishing in 3rd place in the A.L. Central and fading fast as the All-Star break approaches. But I cannot resist at least commenting on the latest news concerning the beleaguered industry, especially as it relates to recruitment advertising.
Q1 advertising revenue for the dailies dropped nearly 10%, with a 14.4% decline in classified ad revenue. Within classifieds, recruitment advertising plummeted 23% to $159 million. Not surprisingly to anyone, forecasters are not predicting any improvement in the future. As reported by MediaPost, Magna anticipates that daily newspaper revenues will decline “9.2% in 2010, 4.2% in 2011, 4.1% in 2012, 4% in 2013, 3.5% in 2014 and 5.8% in 2015. In dollar terms, Magna has total newspaper ad revenues plummeting from $47.4 billion in 2005 to $18.8 billion in 2015 — a 60% drop in 10 years.”
In a perfectly correlated story, paid search advertising has become the dominant advertising medium on the web. According to MAGNAGLOBAL, a division of IPG’s Mediabrands, paid search will account for $30 billion of the $61 billion spent on total online advertising in 2010. This represents a 16.5% increase from 2009, by far the fastest growing category of online advertising.
And just as advertisers in general have migrated from traditional media to the web and paid search, so too are employers increasingly transitioning their recruitment advertising spend from daily newspapers and job boards to job search engines such as LinkUp.com. Like the magnificence of the new Target Field and the dominance of the Twins over the Sox and the other feeble teams in the division, the forces behind paid search are simply too powerful.