As the internet becomes more and more prevalent, more companies are beginning to distribute content through internet only means. Even print media is turning to online only publication. As of 2009, the collapse of the traditional business model of print newspapers has led to various attempts to establish local, regional or national online-only newspapers - publications that do original reporting, rather than just commentary or summaries of reporting from other publications.Newspapers must change their economics. Anyone with a passing understanding of the online ad business knows that it’s fanciful to believe online ads will miraculously pull in the same rates as legacy print placements. Newspapers are living in denial. It’d be better if they made the leap now and fix their cost base for a new world.
An early major example in the U.S. is the Seattle Post-Intelligencer, which stopped publishing after 149 years in March 2009 and went online only. In Scotland, in 2010, Caledonian Mercury became Scotland's first online-only newspaper, with the same aims as Southport Reporter in the UK, with The Yorkshire Times following suit and becoming Yorkshire's first online-only paper in 2011.
In the US, technology news websites such as CNET, TechCrunch, and ZDNet started as web publications and enjoy comparable readership to the conventional newspapers. Also, with the ever-rising popularity of online media, veteran publications like the U.S. News & World Report are abandoning print and going online-only. Another example of an online-only English daily newspaper is the Arabian Post, focussing on the Middle East's current affairs and business. There are a few niche online-only news websites such as Engadget, Mashable, Nagina News Portal, Polygon,Aperture Games and Game Rant
According to the Newspaper Association of America, newspaper revenue in the third quarter dropped 5.1 percent, year over year. This is now the 25th straight quarter of ad revenue decline. In 2006, according to the NAA, ad revenue was $49.3 billion. Today, a comparative paltry $23.9 billion. The entire industry is now generating less ad revenue than Google. While Online ad revenue over the year increased 3.6 percent to $759 million
In 2015, $59.6 billion was spent on any digital advertising, including on search engines, social media, news or any other kind of website. This is up 20% from 2014, according to estimates by eMarketer. This growth rate is slightly higher than in the previous three years, when annual growth hovered around 15-17%. Digital now accounts for one-third (33%) of all ad spending ($183 billion) on any platform. That represents a slightly greater share for digital than in 2014, when it accounted for 28% of the $175 billion in total ad spending.
When it comes to the types of display ad, banner ads – the often rectangular display ads that are embedded into webpages – still account for the largest segment of the market. Total banner display ad spending grew 13% to about $12 billion in 2015 and accounts for 44% of total display ad spending. Nonetheless, this share has decreased over time, as spending increased more rapidly on other formats, particularly video.
Video advertising spending increased 46% to $7.7 billion in 2015 and now accounts for 29% of all display ad spending. Video ads are a fast-growing display ad format, second only to rich media in rate of growth.
Rich media ads (ads that interact instantly when the user’s mouse passes over it or use advanced technology like streaming video) increased 50% in 2015 to $5.6 billion and made up 21% of display ad spending.