Twitchy considered an article from Forbes outlining Google’s massive monetary advantage over newspapers in advertising here. Now Businessweek runs some more numbers, provided by Pew research:
U.S. newspapers lost $10 in print advertising revenue last year for every $1 they gained online, a deeper loss than in 2010, as competition from Internet companies increases, a study by Pew Research Center found.
Newspaper revenues declined more sharply last year than in 2010 when publishers lost $7 in print advertising for every $1 generated from online outlets, according to Pew’s study entitled “State of the News Media,” which is published today.
“They’re continuing to lose ground to tech intermediaries,” such as Google Inc. and Facebook Inc. (FB) as well as to Apple Inc. (AAPL) and Internet retailer Amazon.com Inc. (AMZN), said Tom Rosenstiel, director of Pew’s Project for Excellence in Journalism, in a telephone interview. “The news industry has been fundamentally disadvantaged in this area,” he said.
The industry, suffering declines in print advertising, hasn’t been able to make up for those losses with digital revenue. Washington-based Pew’s study follows last week’s report from the Newspaper Association of America that revealed total newspaper ad revenue dropped 7.3 percent to $23.9 billion in 2011 from the previous year.
While online advertising among news groups increased by about $207 million, print advertising revenue declined by around $2.1 billion, Pew said.
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Undoubtedly, the administration’s response will be to move to subsidize newspapers, most of which are friendly to it. They are good at picking losers.
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