US Newspapers make $40 billion less from ads than in 2000

It's no secret that the rise of the internet has led to a decline in Newspaper subscriptions and purchases. However, the internet and digital marketing has caused even further devastating effects for the industry by reducing the demand for advertisements. 

Data shows that from 2000 to 2013, annual ad revenues for US newspapers declined from $63.5 billion to $23 billion, a 64% decline. The negative effects are also demonstrated by looking at the Washington Post's financial results. The company (which opted in 1998 not to invest in Google mind you) posted a $120 million profit in 1998 recorded a $40 million loss last year. 

There are many reasons why the emergence of technology has ruined ad revenues for newspapers including:

- A general decline in readership as former readers flock to free content online.

- Even the demand for web ads on Newspaper owned sites is declining as more and more free news related websites are created on line that end up competing for ads.

- A third of Newspaper revenue used to come from Classified Advertisements, an area now almost completely taken over by Craigslist.

- Subscribers who have digital subscriptions often view content on mobile which doesn't offer as many ad opportunities as the print or online versions.

 

Although the future of the newspaper industry in general is in question, it is clear that revenues from advertising will likely never be what it once was when companies had a choice between only Print, TV, and Billboard.