Revenues fall. Publishers and those who should know better react to reduced revenue by cutting staff and shrinking newshole. Smaller product interests fewer readers. Smaller circulation means less interest from advertisers. And so it keeps going.
Newspaper revs dropped by 18.1% in the third quarter, compared to the same period in 2007, according to the Newspaper Association of America. Media Post tells it this way:
On the print side, the news was bad across the board, with a 31% decline in classified revenue, an 11.7% decline in retail, and an 18.4% decline in national advertising. Within classified advertising, the automotive category was down 29.2%, real estate was down 38.6%, and employment was down 43.6%.
Thus, the employment category has almost pulled even with real estate in terms of actual dollar amounts lost year-over-year, with a decline of $385 million versus $395 million for real estate. The accelerating losses in both categories reflect the unfolding of the economic downturn, which began in the housing market before spreading to other sectors of the economy.