US Newspapers Report Deeper Ad Losses

Mar 19, 2012

According to a new report from the Pew Research Center's Project for Excellence in Journalism (PEJ), for every dollar that U.S. newspapers gained online last year, they lost $10 in print advertising revenue. The study, "State of the News Media," adds that this reflects a deeper loss than in 2010, when publishers lost $7 in print advertising for every $1 generated from online outlets.

The PEJ study follows a recent report from the Newspaper Association of America that revealed total newspaper ad revenue dropped 7.3% to $23.9 billion in 2011 from the previous year. While online advertising among news groups increased by about $207 million, print advertising revenue declined by around $2.1 billion, Pew said.

Newspapers have begun shifting their businesses online. The New York Times Co. is credited with being a leader in this venture and it has seen success with its paywall plans, accruing about 406,000 subscribers to its publications' sites. Pew's study estimates as many as 100 newspapers are expected to offer a digital subscription model in the coming months.