Essay about The Financial Crisis Of Advertising

928 Words Sep 19th, 2016 4 Pages
During the 2008 financial crisis newspapers saw the largest drop in advertisement revenue sales since the great depression, and affected every sector in the market. This was not the only financial issue that was plaguing the newspaper business. New technology was allowing for easier access to news stories and was changing the way Americans consumed their news. The loss of revenue from advertisements which contributed the lion’s share of total income for newspapers was and is devastating for local and national papers. Nationally the total spending on advertisements fell 12.9% in 2009. Newspapers saw a decline in advertisement revenue by 26%, a rate of decline that was more than 50% steeper than in 2008 when they fell only 16%. For several years before the stock market crash of 2008, the rate of growth for online advertisements had increased 35%. However, by 2009 online ad revenues had fallen by 10%. The next time that newspapers would suffer a sharp drop in advertisement sales would be in 2015 falling nearly 8% from 2014 to 2015. Now One-fourth of advertising revenue comes from digital advertising; however, this move to more modern advertisement strategies was not the saving grace as digital advertising revenue also fell by 2% in 2015.
Due to declining revenues from advertising, the Newspapers responded by raising the price of circulation, assuming that the core audience would remain. Some media outlets charge a fee to access their content online. With the increase of the…

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