Newspaper 'not losing advert. share’

Press, 2 December 1980, Page 22

Newspaper 'not losing advert. share’

PA Auckland Suggestions that the newspaper industry is losing a big share of its advertising revenue to television have been denied by the executive director of the Newspaper Advertising Bureau, Mr Brian Milnes. In recent weeks, said Mr Milnes, several commentators had suggested that the newspaper industry had in recent years experienced major losses in its share of advertising revenue to television. No source was supplied for the figures which, said Mr Milnes, were used to support a claim that “the newspaper industry’s share of advertising revenue had declined from about 50 per cent to about 25 per cent in the last five years.” “Those statements are incorrect,” he said. A set of figures produced by Mr Milnes showed that while television advertising revenue had increased over the 19771980 period, its growth had not been at the . expense of newspapers, which had retaintd a constant share of just under 50 per cent. It appeared, said Mr Milnes, as though that pattern would be maintained in the March, 1981, year. ,

He said that to obtain a more accurate picture of news media share in real terms, a media rate inflation needed to be taken into account. From rate figures produced by the advertising agency, Dobbs-Wiggins McCann-Erickson, it was possible to compare the rate and revenue increases for several main media groups. Mr Milnes said- that such a comparison showed that during 1979-80 newspapers increased rates by 19 per cent and increased revenue by 20 per cent. Television rates rose by 27.5 per cent, and revenue increased 27 per cent. In radio, rates increased 20.5 per cent-with revenue rising 25 per cent. < . Mr Milnes said that with the possible exception of radio, the figures suggested that, in real terms, share figures were ' generally- holding constant and that increases in revenue merely reflected increases in rates. •During 1980, newspapers would "pick up” about $lO9 million worth of advertising, while television. would get about §53 million worth, he said. Radio would take $3O million;, magazines, $l6 million; and direct mail, outdoor signs, and cinemas $27