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June 7, 2012, 11 a.m.
Business Models
LINK: www.reuters.com  ➚   |   Posted by: Joshua Benton   |   June 7, 2012

Useful, if depressing, piece by Reuters’ Jen Saba:

In the first quarter, digital advertising revenue at newspapers rose just 1 percent from a year ago, the fifth consecutive quarter that growth has declined, according to the Newspaper Association of America, a trade organization…

For an industry savaged by the erosion of print advertising dollars, significantly boosting digital revenue is necessary for survival. But the double-digit online growth rates that many newspapers used to enjoy — and on which their hopes for a prosperous future rest — could be a thing of the past.

Cheapie ad networks, unsold inventory, and the general economy get the blame. NYT Co.’s Scott Heekin-Canedy says it’s cyclical economic uncertainty, but it doesn’t seem to be having as big of an impact on the broader non-newspaper digital ad market, which eMarketer projects will increase 23.3 percent this year, driven by search and video — neither a newspaper strength.

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The Garrison Project wants to bridge the gap between national and local criminal justice reporting
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