Newspaper Advertisments Making a Comeback

By Ryan Franker

"We have to see the bottom if these companies are going to survive." Alexia Quadrani, analyst at J.P. Morgan

Ever since the recession, the advertisers for newspaper have taken a large hit. They are the main source of income for newspapers, when the advertisements sales are bad then the newspapers does not have a lot of money to work with.

People are saying that others are slowing starting to buy stocks back on newspapers because they have heard the rumor that the advertisements are doing better. Gannett, McClatchy, and The New York Times Company have had their stock jump more than 10 percent or more. With the jump those companies have reached the highest prices they have had this year. The fourth quarter is suppose to look the best for the newspapers ad industry. Some major names in the media are saying that the ad industry will start making a rebound. But newspapers will be the last media that will get the comeback of advertising.

Even though the ad revenue will have a good fourth quarter, next year could possibly be worse. But it will only be modestly worse. 2008 was a horrible year for the advertising, they fell dramatically and hard. Holiday advertising is going to be very crucial for the media. The publishers need to see the advertisement numbers leveling off. People are seeing the loss of jobs in the media.

With the advertisements leveling off, that means the newspapers will have more money and will not have to cut that many people and everything else that they are cutting to keep the newspaper afloat.

(Photo Credit: ActiveRain)