NAA Releases Profile of American Newspaper Media Industry Revenue 2012
- Circulation revenue rose 5 percent in 2012 for the total newspaper industry in 2012.
- Of the seven companies that provided data on bundled print and digital circulation revenue, revenue from digital/print circulation rose nearly five fold (499 percent) from the level from 2011.
- Digital-only circulation revenue, which could be derived from 12 companies that supplied such detailed breakouts, nearly tripled (up 275 percent) in 2012. Overall, digital-only circulation revenue accounted for a relatively small percentage (1 percent) of total circulation revenue. The online subscription model is vital to newspaper media’s future, particularly as consumers begin to adapt to reading newspaper media on mobile devices, especially tablets. Print-only and single-copy revenue for the 11 companies that reported digital circulation revenue declined 14 percent.
3. New Revenue Sources
Newspaper media are developing revenue from a host of new categories that virtually did not exist a decade ago. Among them:
- Digital agency and marketing: More than half of the companies (nine of the 15 reporting detailed data) reported revenue from digital agency and marketing activities, in which they help local businesses market their products, particularly digitally, in social and mobile. Revenue from digital agency and marketing services from those nine companies rose 91 percent during the year.
- E-commerce and transactions: Many analysts believe that in the digital realm one of the biggest potential growth areas is not advertising but e-commerce and transactions, or helping businesses connect directly with consumers. Three of the 15 companies broke out data in this category. There, e-commerce revenue jumped 20 percent in 2012.
- Event marketing: A number of newspaper media companies have moved into producing events related to core coverage areas, another way to convey information to audiences. Nearly half of the companies that supplied detailed categorical revenue data (seven of the 15) reported event revenue; revenue from the category at those companies dropped 9 percent year to year.
- Commercial delivery: Newspaper media are making a business of using their delivery resources. Eleven companies listed revenue for commercial delivery of other products; revenue in the category dropped 2 percent year over year.
- Commercial printing revenue: Eleven companies reported commercial printing revenue; the category at those companies slipped 3 percent in 2012.
- All other categories: A number of companies are engaged in additional revenue. While small, this category ranges from such activities as royalties, licensing, rental income, waste and scrap sales, among others. Of the 12 companies providing year-to-year data, revenue from these various activities dropped 3 percent.