According to the study, Sunday papers provide more than twice the reach of weekly news magazines or weekly newspapers. According to preliminary 1996 estimates, newspapers' ad share declined to 21.7 percent of total advertising, down from 22.5 percent in 1995, and down from the 26.4 percent share we enjoyed 10 years ago. While total advertising volume growth outpaces the economy in good years, recession magnifies the impact of share loss. Alcohol, automotive, airlines, computers, drugs, food, movies, software and telecommunications are all expanding their national advertising in newspapers. Apparel, coupon marketing and insurance investments have declined.
Retail remains a weak link as the slowest-growing category.
First-half business was up 7 percent, mostly from a resurgence in the distribution of targeted inserts, which jumped more than 20 percent. This is due to newspapers' growing ability to target households, with more than 90 percent of U.S. dailies providing ZIP-code level or tighter distribution. In contrast, retail display advertising was up 3.8 percent. In the first quarter, retail-advertising investments increased in apparel, financial, food and furniture categories, among others. Despite the nation's recent loss of general retailers such as Montgomery Ward and Woolworth, proliferation of specialty stores boosts retail advertising.