Drop in Ad Revenue Raises Tough Questions for Newspapers

march 26, 2007  09:53 am
As circulation and revenue from print advertising both continue to drop, many analysts are predicting a major shift over the next decade in how newspapers do business, the Times reports. The one bright spot in the newspaper industry is a jump in online ad spending, but it still accounts for only 5.4 percent of all newspaper ad expenditures, according to the Newspaper Association of America. "This is a time of wrenching change and chaos," a media analyst at Jupiter Research says. "All of our assumptions about newspapers are going to be changed. The format, the business model, the organization of newspapers have outlived their usefulness."