Business Model Evolving, Circulation Revenue Rising
Circulation revenue for U.S. newspapers recorded a second consecutive year of growth, rising 3.7% to $10.87 billion in 2013, according to preliminary data compiled by the Newspaper Association of America.
Overall, total revenue for the multiplatform U.S. newspaper media business amounted to $37.59 billion in 2013, a slight decline from $38.60 billion in 2012.
Proceeds grew in several other categories — digital advertising, direct marketing, and other, newly-developing sources — while income from traditional print advertising channels declined. This trend reflects an industry evolving its business model in a significant way, taking advantage of developments in technology, consumer behavior, and advertiser interest, to grow audience and diversify its revenue stream.
- Revenue from digital channels — advertising, circulation, digital marketing services, and other — rose 5.8% and accounted for 12% of total industry revenue.
- The group of newly-developing and other revenue increased 5% overall. The component of digital agency and marketing services, where newspaper media companies tap into interest among local businesses in the digital environment, increased 43%.
- Digital advertising rose to $3.42 billion and accounted for 19% of advertising revenue; pure-play (digital only) advertising rose 14%. Mobile advertising revenue, though a small portion of overall total revenue (less than 1%), jumped 77%.
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