From Editor and Publisher and MediaPost

Newspapers First Ad Rep Firm To Close
Erik Sass

Newspapers First, one of the leading national advertising sales rep firms, is going out of business June 4, according to Editor & Publisher. The demise of Newspapers First is a sign that despite signs of a broader economic turnaround and some glimmers of hope at big newspaper publishers, the newspaper business is still in dire straits.

The firm represents newspapers with a total audience of 21 million during the week and 29 million on Sundays, covering the top 125 DMAs, including The Philadelphia Inquirer and Philadelphia Daily News, Atlanta Journal-Constitution, Miami Herald, Detroit Free Press & News, Cincinnati Enquirer, Houston Chronicle, Phoenix Republic, and Denver Post.

Newspapers First offered advertisers customized, geotargeted campaigns, taking advantage of just-in-time delivery to execute ad placements in contextually relevant editorial environments. It specialized in targeting lifestyle segments and niche demographics, as well as database marketing, product sampling and online advertising. (NF reached an aggregate Web audience generating more than 1 billion page views per month.)

Created by a consortium of newspaper publishers, which came together to combine their national sales forces over a number of decades, Newspapers First can be viewed as a bellwether for falling national print ad demand.

Last July, the company downsized its staff by almost half, according to E&P. CEO Bob Termotto said the decision to close the company was prompted by the adverse business environment, adding that the newspaper business "needs a new direction," especially in "how they're going to handle national advertising."

According to the Newspaper Association of America, total national advertising spending has plunged 46% from a peak of $8.1 billion in 2004 to just $4.4 billion in 2009. The last ad spending forecasts from Magna have total newspaper ad revenues continuing to decline through 2015.

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