Online newspaper ad revenues rise, print ads fall

Ad spending on US newspaper websites continues to grow while spending on newspaper print ads declines, according to new figures.  

Newspapers' online ad revenues increased by 19.3% year-on-year in Q2, according to the Newspaper Association of America, to a total of $796m (£395m) - their thirteenth successive quarterly rise.

But print ad revenues have taken a tumble, falling from $10.5bn in Q1 2005 to $9.8bn in Q2 this year.

The rise in online ad revenues has also not been enough to offset the drop in print ad spending. Total ad expenditure is down almost $1bn over the same period in 2006, a fall of 8.6%, the group said.

The big challenge facing newspapers as more and more people choose to read news online is whether online ad revenues will be enough to make up for the associated loss in newspaper sales and print ad revenues, and still enable them to pay for the cost of creating content.

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