Hope that local newspapers can turn the page

Over the course of 2009, about 60 regional newspapers closed in the UK, according to Newspaper Society research. A number of factors were to blame.

Circulation has been in steady decline since the 1970s. More significant, however, is the fact the regional press is far more dependent on advertising than national publications. It traditionally generates the bulk of its revenue from classified advertisements for property, recruitment and cars - the volume of which fell sharply in the recession. As a result, advertising revenues at three of the largest regional publishers - Johnston Press; Northcliffe Media, the regional arm of the Daily Mail & General Trust; and Trinity Mirror's regionals division - tumbled 26-30 per cent year on year in 2009, while total revenues fell between 19.5 and 23.5 per cent.

With the economic clouds beginning to lift, proprietors hope that advertising budgets will be unlocked and regional revenues will rebound. Yet some analysts question that logic.