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The New York Times loses out on ad sales in Q4: Report
LSEG data shows that advertising revenue decreased 8.4% in Q4 to USD 164.1 million, below the initial estimate of USD 177 million.
According to a report on ET, the New York Times' shares fell more than 8% after it missed estimates for quarterly revenue on February 7, 2024. This was partially due to a delay in advertising sales caused by geopolitical events. Because of the unpredictability of the economy, marketers have cut their marketing expenses and stayed with safe havens like Meta, while users have reduced their membership spending to save money.
According to the organisation, marketers have shown a disinterest in having their content appear alongside news that is influenced by current events, such as the Middle East conflict. According to LSEG data, advertising income decreased 8.4% to USD 164.1 million in the fourth quarter, falling short of projections of USD177 million.
In the advertising industry, "we continue to experience limited visibility, particularly around ongoing print declines," stated William Bardeen, the finance head. The publisher missed projections of USD 679.24 million by reporting sales of USD 676.2 million for the quarter. The adjusted earnings per share of 70 cents exceeded forecasts.
It attempts to bundle its core news reports with digital material, such as sports and gaming, resulted in 300,000 new digital-only subscribers during the quarter, up from 210,000 over the previous three months.
Companies like Business Insider and the Los Angeles Times have resorted to firing journalists in what has been a difficult year for publishers in the ad industry, while the Washington Post had announced that it would be providing voluntary separation packages.
The business predicted that total ad revenues would fall in the mid-single digits for the first quarter, while digital ad revenues would rise in the low-to-high single-digit percentage range.
Prior to the US presidential election in November, businesses should expect a surge in advertising spending. According to research firm Insider Intelligence, political advertising spending is predicted to increase by 30% this year compared to the previous election in 2020.