In his biannual letter to employees, Advance Local President Randy Siegel, the highest-ranking non-Newhouse family member in the Advance newspaper digital hierarchy, says the company is “poised to achieve a critical crossover point in 2015: digital advertising gains will exceed print newspaper ad losses,” Poynter Institute researcher and writer Rick Edmonds reports.
Advance Local President Randy Siegel
Underscoring that Advance’s New Orleans property isn’t the only one that loves to invoke marketing-speak when talking about its business, Siegel reports, “Our local sales and marketing teams have leveraged their entrepreneurial abilities and expansive digital knowledge to prove they can grow digital ad revenue faster than we’re losing print ad revenue. In 2015, our local leadership teams plan to generate higher total ad revenue in every one of our markets, reversing a longstanding trend of decline.”
Advance Local’s sites have averaged 55% traffic gains year-to-year, as measured by comScore, Siegel wrote, with Cleveland.com and SILive.com (Staten Island) more than doubling their audiences year-to-year in November.
Advance Local’s lofty prognostications aside, Edmonds reports that based on the aggregate results of publicly traded newspaper companies through the first three quarters of 2014 (many company’s fourth quarter’s results won’t be reported until next month), the yearlong results are expected “to show total revenue at most companies and the entire industry down again.”
“Other newspaper/digital companies may also be able to achieve revenue growth in 2015, though to my knowledge, Advance is first to make that promise.” Poynter Institute’s Rick Edmonds
Advance is a privately held company and consequently is not required to report the same level of detailed financial and operational data that publicly traded companies must disclose.
Edmonds notes that while Siegel’s letter highlights digital advertising, it doesn’t mention circulation revenue, which while a falling line item at almost all newspapers, is still a significant contributor for many. Add to that the fact that Advance’s newspaper websites are free, meaning they don’t reap digital subscription revenues the way a number of prominent newspapers now do.
And by publishing and/or home-delivering print newspapers fewer days in most of its markets, Advance has foregone print or bundled subscription price increases that “most of the rest of the industry” has enjoyed, Edmonds noted, adding that the industry overall saw successive 5% circulation revenue gains in 2012 and 2013, the most-recent available figures.
He does note that Advance has been right on two predictions: Newspaper “digital ad revenues could grow from a small base, and that print declines were irreversible. And in theory, it now has leaner operations well-positioned for growth into the future.”
Despite the thousands of jobs across the country that Advance has eliminated as part of “Digital First,” Siegel hinted that operations aren’t yet lean enough. “… this journey will take a little longer and be a little harder than we originally anticipated, which is why we continue to need to recalibrate our expenses,” he wrote.