Google overtaking newspaper ad sales
Advertising sales, the predominant revenue stream for the newspaper industry, dropped for the seventh year in a row in 2012, falling to less than half the record $49.4 billion achieved as recently as 2005.
Let’s put things in perspective by comparing the meteoric rise of Google, the definitive digital media company, with the epic collapse that has cut the newspaper industry’s primary revenue stream by more than half since 2005.
In less than a dozen years, Google has built a $46 billion advertising business that was twice as large last year as the combined print and digital ad sales of all of the 1,382 daily newspapers in the land.
Scarborough Research, a private company hired by newspapers to measure readership, reports that 68% of newspaper readers are over the age of 45.
The International News Media Association, a publisher-funded research organization, reports that the average age of newspaper readers is 57.
Without younger readers to replace their steadily aging audiences, newspaper publishers run the risk of losing the relevance and scale that will attract advertisers to not only their print but also their digital products. A continued loss of revenues eventually will impair the long-term profitability and survivability of newspapers.