Study: Newspapers lose $7 in print advertising for every $1 gained in digital revenue

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Washington, D.C.—Newspapers lose $7 in print advertising for every $1 they gain in digital advertising, according to a study conducted by the Pew Research Centers Project for Excellence in Journalism. “The Search for a New Business Model” examined the revenue of 38 U.S. newspapers. Only three of the newspapers in the report had a circulation of more than 100,000. “Cultural inertia is a major factor” in the inability to find more growth in the digital arena, the study concluded. At the same time, the study found that a handful of papers were seeing strong growth in digital revenue, with two newspapers delivering more than 50% growth in that area between 2009 and 2010. The study found that the most promising area of digital revenue growth appeared to be targeted advertising.
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