Online advertising for newspaper Web sites, hailed as the fix for a failing industry, fell this past quarter after 17 months of growth.
The second-quarter total of $777 million, a 2.4-percent decline compared to this time last year, is only year-over-year drop for online revenue drop since 2003, according to the Newspaper Association of America.
Many newspapers had begun expanding their Web sites to include multimedia and more localized pages in hopes of expanding advertisers. The news of slowing online advertising revenue comes as bad news to many of these companies, especially with many papers struggling to stay financially afloat as more readers turn to the Internet for news, which has caused print advertising revenue to plummet.
“It’s still a situation where if advertisers even perceive they can reach your audience, they might be inclined to go with a network, and that’s a concern I have with networks,” said Steve Stup, vice president for sales at Washingtonpost.Newsweek Interactive.
It's not all bad news, though. Overall online advertising grew 7.6 percent in the second quarter, according to the TNS Media Intelligence, and The New York Times Company's online revenue grew 13 percent in the same period.
Read more about trends in newspaper online revenue here.
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