Thursday, May 17, 2012
Articles

Community Newspapers Announce Second Quarter Results

For more information, contact Nancy Lane, SNA President, at nancy.lane@suburban-news.org or (843) 390-1531.

Community newspapers reported an average 12.4% advertising revenue decline in the second quarter of 2009, compared to a more than double national industry average decline of 29% for the same period.

Thirty-two community newspaper organizations with a total circulation of 12.55 million took part in the second quarter survey conducted by Suburban Newspapers of America (SNA) and National Newspaper Association (NNA). The national advertising expenditure figure was reported by the Newspaper Association of America (NAA).

While participants in the SNA/NNA survey cited a slowdown of automotive and real estate activity, the majority also reported no staff reductions, while many launched new products.

Community newspapers’ second quarter results follow a 2.4% decline for the same period in 2008, according to the SNA/NNA survey last year. According to NAA, there was a 15% industry-wide decline in second quarter 2008.

During the nation’s economic twists and turns, community newspapers have continued to draw savvy investors and advertisers, as recognized in an April 28, 2009 Wall Street Journal story recounting the purchases of local publications by newspaper industry professionals.

Further, a new online advertising opportunity offered through LocalPoint Media, a national network owned by 19 community newspaper companies and SNA’s for-profit subsidiary, is another creative way for community newspapers to expand their advertising scope.

Launching October 1 is zip2save.com, a comprehensive national aggregation Web site featuring online advertising circulars, coupons, deals, travel specials, catalogs and more. The site, searchable down to zip code level, was modeled after flyerland.ca, the highly successful Canadian site owned by Metroland Media Group, Ltd., a partner in the zip2save venture. For more information about zip2save.com, contact LocalPoint Media headquarters at (866) 451-5567.

“Once again, I think the figures make it apparent that the newspaper industry in general is taking a harder economic hit than the community newspapers,” said SNA President Nancy Lane. “They are investing in new products, making gains with major and national advertisers and preparing for an economic rebound. Community newspapers and their related online media certainly represent a welcome bright spot for the industry.”

Note about the reports: financial data was tracked for all products published except dailies over 100,000 (although most SNA and NNA members do not publish papers in this size range). Due to the wide variety of reporting procedures, only total advertising was tracked. Category variances were explained in open-ended fields. The accounting firm of Dennis, Gartland & Niergarth handled the collection of data and the verification process.

About Suburban Newspapers of America — Suburban Newspapers of America (SNA) is a trade association representing more than 2,000 daily and weekly newspapers in the United States and Canada. SNA has experienced eight years of record growth — another indication of the strength of this segment of the industry. For more information, visit www.suburban-news.org and www.snalocalpapers.com.

About LocalPoint Media — LocalPoint Media is a national advertising network that represents community daily and weekly newspapers in the U.S. and Canada. New advertisers for 2009 include Exxon/Mobil, US Airways, New York Life, Pedigree Dog Food and CVS’s Minute Clinics. LocalPoint Media is owned by 19 newspaper companies and Suburban Network, Inc., SNA’s for-profit subsidiary. The following companies have an ownership interest in LocalPoint Media: American Community Newspapers II, LLC, ASP Westward, LP, Aurora Publishing Company, Community Newspaper Holdings, Inc., CrossRoadsNews, Inc., Dix Communications, Inc., Fayette Publishing, Inc., GateHouse Media, Inc., Holden Landmark Corporation., Mile High Newspapers, NPG Newspapers, Inc., Packet Publications, Recorder Community Newspapers, Red Wing Publishing Co., Rhode Island Newspaper Group, Richner Communications, Rust Communications, Schurz Communications, Inc. and Sun-Times Media Group. Visit www.localpointmedia.com for more information.

About National Newspaper Association — Established in 1885, the National Newspaper Association (NNA) is the voice of America's community newspapers and the oldest national newspaper association in the country. NNA represents an industry that serves, informs, educates and entertains more than 60 million readers every week from Main Streets across the nation. For more information, visit www.nna.org.

About Metroland Media Group Ltd — Metroland is Ontario’s largest community newspaper publisher with more than 100 community newspapers and a combined circulation of approximately 4.7 million copies per week. Metroland is one of the most sophisticated distributors of advertising circulars in Canada, delivering over 3.4 billion pieces each year. Their ability to effectively target the advertising message has led to 20 years of consecutive growth in preprint volume. They launched www.flyerland.ca in March 2008 which has emerged as a leader in online preprints in Canada.



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