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Hypergene MediaBlog » Traffic to online news sites up dramatically but revenues show signs of slowing
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Traffic to online news sites up dramatically but revenues show signs of slowing

In May the Newspaper Association of America study looked promising. It showed the audience for newspaper web sites growing at nearly twice the rate of the overall online audience (5.3% increase compared to 2.7% overall increase for the general internet audience).

Friday’s release was also upbeat saying that advertising expenditures for newspaper Web sites increased by 19.3 percent in Q2.

paidContent.org’s David Kaplan didn’t have to dig too deep to see that this number alone might not be telling the whole story:

”… that number fell far from Q206ís 33 percent jump over the same period in 2005. And compared to the beginning of this year, the NAA said newspaper sites was up 22 percent in Q1 over the year before."

There were also continued declines in print advertising that might be too much for newer revenues to overcome. For every print reader lost, the Financial Times recently calculated that tens of online readers must be gained to make up for missing subscription and advertising revenue.

According to the Financial Times, online ads are poised to take over US newspaper advertising in terms of size by 2011.

Posted on Sep 03, 2007 | 8:32 pm EST

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