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News

Analyst: Expect Steep Local Drops

From Editor & Publisher

Newspapers could be particularly hard hit by a decline in advertising spending next year that will be steeper by local advertisers than national ones, a Goldman Sachs analyst predicted Tuesday.

In a research note, analyst Mark Wienkes grouped newspapers in with magazines, outdoor and radio as media expected to see ad spending off between 5% and 10%.

Ad spending could dip as low as the record declines seen in 2001, Wienkes said.

Local advertising will drop farther than national, he wrote.

For instance, he predicted cable networks will see a 1% drop in ad spend -- while local television stations could be off as much as 17%.

National ad spending will slow in the fourth quarter of this year, but will continue to benefit from new products and a fight for market share among traditional big advertisers.

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