How Well Do You REALLY Know The Newspaper Industry? Take Economist Robert Picard's Test

via Editor And Publisher on 8/1/08
By E&P Staff

Published: August 01, 2008 12:58 PM ET
CHICAGO Robert G. Picard, the well-known media economist, has developed a test about the economic and financial conditions of U.S. newspapers that he gave to attendees at a recent industry conference.

Take it yourself, and see how you do:

1. The average newspaper circulation is about
(a) 150,000
(b) 110,000
(c) 85,000
(d) 50,000
(e) 35,000

2. Newspaper penetration per population
(a) Has remained relatively stable
(b) Dropped suddenly in after 2000
(c) Dropped suddenly in the mid 1990s
(d) Began declining steadily beginning in 1980s
(e) Has declined at a steady pace for 50 years

3. Newspaper advertising income reached an all time high of $49.3 billion in
(a) 2006
(b) 1999
(c) 1993
(d) 1989
(e) 1984

4. Adjusted for inflation, advertising income in newspapers is
(a) About the same as in 1950
(b) 1.5 times lower than in 1950
(c) 2.5 times lower than in 1950
(d) 1.5 times higher than in 1950
(e) 2.5 times higher than in 1950

5. Since 2000, classified advertising has declined about
(a) 10 percent
(b) 25 percent
(c) 50 percent
(d) 75 percent
(e) None of the above

6. Income from online newspaper advertising has replaced which portion of lost income from print classified advertising
(a) 15 percent
(b) 30 percent
(c) 45 percent
(d) 60 percent
(e) 75 percent

7. Newspapers are primarily dependent upon which type of advertising
a) National
(b) Retail
(c) Classified
(d) Preprint
(e) Legal

8. The return on sales for newspapers is now
(a) Below pharmaceutical companies
(b) Below automakers
(c) Below department stores
(d) Below banks
(e) None of the above

9, The number of journalists working in papers is
(a) About the same as in 1970
(b) 25 percent lower than in 1970
(c) 50 percent lower than in 1970
(d) 25 percent higher than in 1970
(e) 50 percent higher than in 1970

10. The overall financial conditions of the newspaper industry is
(a) Worse than in the 1990s
(b) Worse than in the 1980s
(c) Worse than in the 1970s
(d) Worse than in the 1960s
(e) Worse than ever in its history


The correct answers: 1) e; 2) e; 3) a; 4) e; 5) b; 6) d; 7) b; 8) e; 9) d; 10) a

Here's Picard's rating of your score:

8-10 You have a realistic view of the industry's situation
4-7 You have an incomplete understanding of the
industry's situation
0-4 You have an unrealistic view of the industry's situation