With the exception of their digital operations, North American newspapers have significantly lowered their revenue expectations for 2012 according to the 6th annual preview report from Toronto-based KubasPrimedia.
The findings are based on interviews with 436 executives and managers from Canadian and U.S. newspapers ranging in size from less than 25,000 circulation to more than 100,000.
More than half (53%) of the executives surveyed said advertising revenues are worse than expected this year. Large-circulation U.S. dailies were particularly hard hit, with 61% saying that 2011 ad revenues were worse than expected.
Among Canadian newspapers, 18% of respondents said that 2011 ad revenues are better than expected.
Of the eight advertising revenue categories, only digital is expected to see an increase in 2012. About 53% of respondents expect to see a large increase in this sector, with an additional 39% predicting a small increase.
The automotive and retail display categories are expected to be flat next year, while real estate, other classified and national display advertising revenues are all expected to see declines.
Not surprisingly, newspapers see digital – and mobile delivery in particular – as their saviour. The survey found that about 70% of newspapers have definite plans to start or upgrade their content delivery on mobile devices and to improve their website.
Controlling or reducing staff or non-staff costs are also high on the list of 2012 objectives, as are charging readers for digital content and starting a new niche product. Less than 20% of publications are considering upgrading presses, a size reduction or reducing their frequency.
Upgrading their digital advertising platforms, whether through mobile or an enhanced website offering, is also a priority for newspapers, while improving ad pricing and rate structures is another area of focus.
