Online ads up — just not enough

by Mathew on November 21, 2007 · 4 comments

Yet another in a long (and I mean long — we’re talking a decade or so) line of depressing declines in newspaper advertising levels, as detailed in a release by the Newspaper Association of America and in this Reuters story. And just to add insult to injury, Alan Mutter of Newsosaur notes both on his own blog and at Silicon Alley Insider that it’s even worse when you take inflation into account. I bet Alan is a lot of fun at parties.

As the Reuters story notes, there is some good news — while regular print advertising fell by 10 per cent in the third quarter, online ads rose by about 21 per cent. That’s good, right? Sure. Except for the fact that online advertising only amounted to about $770-million, and traditional newspaper ads accounted for more than 10 times that amount or about $10-billion. That’s a pretty dramatic gap, as Scott Karp of Publishing 2.0 has pointed out before — something he calls the “10-per-cent problem.”

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