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Of all the things that make me sad or sentimental about the continuous march of technology, one of the worst is probably the demise of printed words…whether they be in newspapers, magazines or actual, non-Kindle books. After adjusting for inflation, newspaper advertising now stands at about the same level as nearly 50 years ago. Print advertising has fallen in each of the past five years, dramatically shrinking newspaper publishers’ main source of income. To cope with the upheaval, newspapers have cut their staffs, raised their prices and, in the most extreme cases, filed for bankruptcy protection to lighten their debt loads. Tablets, in particular, could create new moneymaking opportunities because early research indicates that their users tend to spend more time reading stories and watching video on those devices than they do on laptops and desktop computers. Publishers would settle for any sign of overall ad growth after 16 consecutive quarters of decline from the previous year.



Newspaper advertising totaled $7.3 billion in the last three months of 2010, down 5 percent from the prior year. Online ads were the bright spot again in last year’s fourth quarter, rising 14 percent to $878 million.
This entry was posted by jhaynes on March 28, 2011 at 2:47 PM, and is filed under Uncategorized. In 1962, newspaper advertising totaled $3.7 billion, which translates to about $26 billion today.
Even as the economy has gradually improved since 2009, newspapers are still bringing in less revenue as advertisers embrace free or cheaper Internet alternatives that aim to deliver the messages to people most likely to be interested in the products being pitched. Online ads generated $3 billion for newspapers last year, an 11 percent increase from the previous year. That trend could help newspapers charge higher rates for ads on their tablet editions than they do on their websites and perhaps make it easier to sell subscriptions to digital editions.


The quarterly decreases have been getting progressively smaller since the July-September period of 2009, when newspaper ad revenue plunged 29 percent from the previous year. The Internet now accounts for about 12 percent of newspaper’s ad revenue, up from 4 percent in 2005.
The shift has accelerated in recent years as more readers abandoned newspapers’ print editions for the Web.
With the exception of The Wall Street Journal and a few other newspapers, most publishers have given away their content on the Web — a factor that contributed to their financial woes in recent years. Before the slump began in 2006, print advertising generated about $47 billion in annual revenue for newspapers.



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