Analysts Goldman Sachs told the newspaper industry that they foresee a 7.9% decline in newspaper revenue in 2008. This is far worse an outcome than their previously predicted 2.6%.

Classifieds are expected to lead the pack in declines, as was the case in 2007. Goldman Sachs said: “We expect the classified categories to be very weak with the real estate, help wanted and auto categories particularly sensitive to broader economic activity.”

Advertiser and consumer surveys and statistics, further solidify what analysts are saying. Realtors have placed print at the bottom of the list when creating their advertising plans for 2008 and instead are focusing on building their own online entities. In automotive, we have seen a 15% increase in consumers sourcing auto information online and a 1% decline for newspapers (CNW Marketing, NAA). In the US, for the period of January to July, 75% of those looking for jobs did so using the Internet.

As a result of the revamped predictions, Goldman Sachs cut earnings forecasts for the New York Times Company, McClatchy, Gannett, Belo, Journal Communications, and E.W. Scripps.

written by Beverly Crandon \\ tags: Automotive, Employment, Newspapers, Real Estate, revenue decline