Study: Newspaper advertising revenues will continue to grow in the future

The advertising revenues of newspapers in German-speaking countries will increase by 2010, but their reach will continue to fall, according to Mediareport's Prognos. However, the rising advertising revenues would mask the core problem of newspapers - the creeping decline in circulation. The two newly published market studies for the German-speaking countries with regard to newspapers and online media illustrate the trends with figures: In Switzerland, Prognos expects growth of around 13 percent to CHF 1.8 billion. At the same time, however, newsstand newspapers in German-speaking Switzerland are continuing to lose circulation. The number of daily newspapers sold in 2010 will fall from 1.86 million (2005) to 1.76 million (2010). This corresponds to a loss of around five percent.
By contrast, Mediareport sees success models in online media. The rapid growth is expected to continue until 2010, as a large proportion of online users will belong to the group of experienced Internet users by then. For this group, the Internet is already indispensable as an information medium, which in turn attracts advertising money. The average annual growth rate in Switzerland is 12.8 percent.
However, online media are not benefiting equally from the gains in sales and market share. In fact, according to the Prognos strategy report "Online Media 2010", innovation competition is increasingly turning into cut-throat competition. With Internet experience, users' usage habits are becoming more established. The number of regularly used websites is as small as the average number of radio and television programs consumed. The online market leaders benefit disproportionately, while the medium-sized and smaller online media lose out. In order to be part of this "relevant set" with their websites in the future, medium-sized and smaller newspaper publishers in particular will have to make a huge effort.
The Prognos media reports are based on extensive and continuous research and market observations in the media and communications markets. Every year, each report forecasts the sector-specific development for one segment in the three countries Germany, Austria and Switzerland over a five-year period. The following thematic reports with a forecast period up to 2010 are available: Broadband Access, Mobile Communication, Television, Radio, Online Media, Newspapers and the Premium Report: Strategies in Networked Markets.