NEW YORK ( TheStreet) -- Newspaper stocks are gaining today as investors enter the New Year with a positive outlook on the overall advertising market.

Shares of Gannett ( GCI) are up more than 4.4%, while E.W. Scripps ( SSP) is gaining more than 3%.

Analyst Barry Lucas of Gabelli & Co. said that publishing companies will see long-term benefits from the changes they are making as the ad model shifts from physical to digital.

Publishing companies with broadcast operating segments, such as Scripps and Media General ( MEG), may see declines in revenue in 2011 after seeing gains in 2010 due to the strong political advertising presence. In 2012, however, Lucas forecasts that political revenue will spike.

"Investors are looking at 2012," Lucas said in an interview with TheStreet, "which should be a great year for political revenue."

Lucas said that investors should expect to see a continued moderation in newspaper stocks this year in terms of ad revenue, but he predicts that the core business at most of those companies will be up in the mid-single digits.

"Print ad revenue is probably going to be down, certainly in the first half of the year," Lucas said, but he believes revenues should improve as more and more companies adjust their ad revenue model and distribute their publications digitally.

According to data from Advertising Age, U.S. media revenue rebounded in 2010 after recording its first declines in 2009. The Internet became the second largest U.S. ad medium in 2010, beating newspapers for the first time since Ad Age began collecting media company data in 1981.

McClatchy ( MNI) shares spiked at the end of 2010 after chairman and CEO Gary Pruitt noted the company's improving advertising revenue trends in a presentation at the 38th annual UBS media conference.

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