If a research report by PriceWaterhouseCoopers released last month is to be believed, newspaper advertising spending will continue to decline through 2013.  This month, a new report from Borrell Associates paints a very different picture.

According to the new Borrell Associates research, print newspaper advertising revenue will grow by 2.4% in 2010, and as the economy continues to recover, that advertising revenue will continue to grow.  The chart below provides some perspective on the trends Borrell Associates predicts.

borrellassociates_newspaper-advertising

Borrell Associates also predicts that smaller newspapers that service small niche audiences will see the bulk of the benefit from the predicted ad revenue upswing, confirming Umar Haque’s Newspaper Manifesto, which I wrote about on the Newstex blog last week (read that post here).  I can’t argue with that prediction, but I am skeptical about the recovery of traditional media and newspapers over the course of the next year as Borrell Associates expects.

Online is the place to be.  It seems backwards to imagine companies investing large sums of advertising revenue on a dying breed of media like printed newspapers when the online opportunity is so great.  What do you think?