Newspapers Saw Worst Online Ad Revenues Ever in Q2

Despite lifelines from Yahoo and quadrantOne, the newspaper industry is gasping for air as its online ad revenues continue to sink

Despite lifelines from Yahoo and quadrantOne, the newspaper industry is gasping for air as its online ad revenues continue to sink. It’s worse than ever. Second quarter revenues actually contracted for the first time, following disappointing Q1 growth of less than 10 percent.

In Q2, online ad revenues were around $777 million, down from $804 million in Q1 2008, amounting to a -2.4 percent change.

Now, in addition to battling steeper-than-ever declines in print classifieds revenues, newspapers must contend with a severe drop in Web ad dollars – the only hope the industry has had for counteracting print ad decreases.

With ad budgets steadily tightening, I think it’s safe to say we can expect the waters to get even choppier for newspapers. Hopefully they can hang on without the need for desperate measures.

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