It is hardly a surprise anymore when another newspaper announces that they will no longer exist in print format. Instead these newspapers are heading online and not a whole lot of people seem to be upset about it. One of the biggest reasons for the new trend is related to advertising.
Over the last three years, the amount of money spent on advertisements that are displayed in print publications has dropped significantly. Back in 2005, the industry reported earnings of close to $50 billion for print advertisements. Today, that figure has fallen to around $28.4 billion.
Companies are struggling to deal with the ultimate effects of the decline in print advertisements. While some newspapers may head online, other companies like the New York Times are being forced to cut jobs in an effort to save money. In worst-case scenarios, some companies including Tribune Co. have had no choice but to file for bankruptcy.
It is thought that a number of companies failed to take web advertising seriously. Nobody even thought to figure out how much money was being generated by online advertisements until around 2003. By 2007, it had already been determined that around 7.5% of advertising revenue came from the web.
Now several of these newspaper publications are making themselves comfortable online. The problem is that economies across the globe are in decline so their fight to regain some ground will likely be that much harder for them.