STRICTLY BUSINESS: NEWSPAPER INDUSTRY STILL ALIVE AND WELL

Almost 60 million newspapers were sold every day in 1995.

With an average of 2.29 readers per copy, that translates into more than 130 million readers.

Advertising revenue in 1995 was $36 billion, up 5.7 percent from 1994,

Advertisers invested more in U.S. newspapers than in any other medium. Newspapers received 22.4 percent of all advertising dollars, compared to 20.4 in broadcast television and 20.4 percent for direct mail.

So, to borrow a phrase used in this column more than a year ago, "the newspaper industry is alive and well."

Despite network TV, cable TV, magazines and increased activity on new online computer programs, newspapers are still thriving nationwide.

Some impressive, and optimistic, statistics have been revealed in two annual meetings of the Newspaper Association of America (NAA) -- the NAA National Convention, held in New York earlier this year and at the NAA's NEXPO '96 Convention held last month at Las Vegas.

The NAA is made up of 1,500 papers representing more than 85 percent of the nation's total newspaper circulation. The consensus from the annual meeting is that newspapers are holding their own against some stiff competition.

Look at the statistics

Newspaper statistics reveal:

-- Advertising revenue of $36 billion, up 5.7 percent from 1994, and up almost $10 billion from the $26.9 million of a decade ago.

-- Newspapers' advertising revenue make up a 23.4 percent share of the advertising dollars spent in the United States, the largest slice earned by any medium, including television.

-- Readership remains strong. About three-fourths of American adults read a Sunday newspaper every week, and about 132 million Americans read a Sunday newspaper every week. Sixty-four percent of American adults read a newspaper daily. Additionally, 57 percent of American adults read every page of the newspaper.

-- Morning newspaper circulation is at an all-time high, with circulations of more than 43 million, compared to the 15 million afternoon circulation. In 1950, afternoon circulation totaled 32 million and morning newspapers were at 21 million.

-- More than 1,500 daily newspapers have more than 60 million circulation.

-- Some 8,453 weekly newspapers account for 78.6 million readers, average circulation of 9,425.

"Newspapering-as-usual" is changing. Newspapers today are taking a sharper look at their makeup, using color photographs and graphics.

More than 230 North American daily newspapers have launched online services (March 1996 totals). More than 200 newspapers have developed sites on the World Wide Web and more than 700 newspapers worldwide have Web-based services. That number is expected to double in 1996.

The Newspaper in Education (NIE) program, established by the NAA and conducted by individual newspapers, are used in school classrooms as learning tools and to develop lifetime reading habits by students.

The NIE program is conducted at more than 68,000 schools nationwide.

The Southeast Missourian is one of those involved heavily in the NIE program.

Newspapers in the classrooms

During the first year of the program, in 1991, about 2,500 students received newspapers in their classrooms. This year, more than 40 schools will be involved in the Southeast Missourian program, representing more than 300 classrooms.

The Missourian absorbs about half of the $64,000 annual retail cost of the program. A number of community supporters provide the other half of the funding.

The Southeast Missourian is part of the Rust Communications Network of Newspapers, the largest outstate daily and weekly newspaper group in Missouri, with more than 200,000 circulation in four states. The group includes five daily newspapers with a combined circulation of more than 125,000 and a dozen weeklies with more than 85,000 distributions.

Based on the almost 2.3 readers per publication, that translates into almost a half-million readers of Rust Communications newspapers in Southeast Missouri, Southern Illinois, Northeast Arkansas and Western Tennessee.

One issue that is not one of happiness for newspapers is the constant increase of newsprint costs during the past 18 months, but even that situation eased some over the past few months.

Industry 'good and improving'

Newsprint prices have increased as much as 90 percent during the past two years but are now in a mild declining mode. But even with higher newsprint costs and increasing competition from the electronic media, the future seems bright for America's newspapers. The market is still strong, and recent studies show a growing trend by younger people to read newspapers.

"The state of our industry is good and improving," said John J. Curley, chairman, president and CEO of Gannett Co., and chairman of the Newspaper Association of America. Curley announced the survey findings of the Gannett survey during recent NAA technical exposition and conference (NEXPO).

The Gannett survey, conducted in March and April, consisted of telephone interviews with 2,645 adults ages 18 and older. The margin of error in the survey is plus or minus 2 percent.

The survey agreed with the NAA that much news is "good news" for newspapers.

The Gannett survey found that daily newspapers are the preferred medium for advertising information among 14 media categories, revealing that fewer Americans are watching TV commercials.

The survey also revealed that one of newspaper's nemesis -- direct mail -- had the lowest credibility of any medium when it comes to ad believability.

By a 3-to-1 margin, survey participants said they relied on preprinted inserts or circulars delivered via their daily newspaper than on those delivered by mail.

The Gannett survey indicated that seven in 10 Americans read at least one newspaper a week, and 57 percent read a newspaper daily.

Better yet, daily newspapers were found to be the preferred source over all other media for advertising information.

'Pass-a-long' readers

Among the Gannett findings, 71 percent of U.S. adults read a weekday local or regional newspaper, while 57 percent read a daily newspaper and 65 percent read a Sunday paper.

Even as paid circulation declines, readership grows, in part, because of increasing numbers of "pass-a-long" readers, who number 14 percent.

Few American are watching television commercials, with 62 percent saying they either leave the room or switch channels during TV ads.

Readership increases with affluence. The survey reveals that among households earning more than $100,000, readership is 85 percent; in households with incomes of $75,0000, readership is 77 percent, and in categories from $35,000 to $75,000, readership is 75 percent.

Other findings of the Gannett report show newspaper advertising is sought by 77 percent of readers for entertainment and things to do locally; 74 percent of home buying and real estate; 71 percent for used-car information; 68 percent for grocery information; 61 percent for furniture and home furnishing information; and 59 percent for clothing information.