I hesitate to post an article about the suffering newspaper business, because it is a story we already know. Yet, given that our own fates are tied to their demise, let’s look at some numbers…
According to Media Daily News, The New York Times Company’s operating profit fell from $52.7 million in the first quarter of 2010 to $31.1 million in the first quarter of 2011 — a 41% drop.
Focusing on specific categories, The Times saw national advertising slip 1.6% to $156.3 million, retail fall 8.6% to $58.2 million, and classifieds decline 5.7% to $45.8 million.
The Times isn’t alone. McClatchy’s national advertising plunged 29.3% to $18.1 million in the first quarter; retail sank 12.5% to $114.4 million; and classifieds slipped 7.8% to $64.8 million.
Will revenue from digital advertising save the day (and by “day,” I mean journalism and advertising)? Sure, in the end, all these floating pixels may indeed save the day.
Meanwhile it pains me to see an American institution like The New York Times struggle to find its way through the digital forest. It also pains me to look at the state of online display advertising today and realize how far away the ad industry is from a real solution.