Categories: OLD Media Moves

The Economist sees a drop in ad revenues

The Economist has suffered an 11 percent fall in profits as a result of declining ad revenues, reports Jennifer Faull of The Drum.

Faull reports, “However, to capitalise on uptick in subscribers, it has increased its marketing budget over the ‘next few years’ in the hopes of stemming further losses.

“In its annual report, it revealed that less than 20% sales came from advertising, compared with 23% in 2015 and 40% in 2010.

“It said that despite largely avoiding the massive downturn other news companies have suffered, ‘the virus eventually caught up with us, and how.’

“Chairman Rupert Pennant-Rea described the last year as ‘painful.'”

Read more here.

Chris Roush

Chris Roush was the dean of the School of Communications at Quinnipiac University in Hamden, Connecticut. He was previously Walter E. Hussman Sr. Distinguished Professor in business journalism at UNC-Chapel Hill. He is a former business journalist for Bloomberg News, Businessweek, The Atlanta Journal-Constitution, The Tampa Tribune and the Sarasota Herald-Tribune. He is the author of the leading business reporting textbook "Show me the Money: Writing Business and Economics Stories for Mass Communication" and "Thinking Things Over," a biography of former Wall Street Journal editor Vermont Royster.