* Online ad revenue forecast to surpass print in 2010
* More people get their news online than from newspapers
* Newspaper newsrooms have shrunk 30 pct since 2000
NEW YORK, March 14 For the first time, online
readership and advertising revenue has surpassed that of print
Online advertising revenue in the United States is
projected to overtake print newspaper ad revenue in 2010,
according to the latest report, the State of the News Media,
from the Pew Research Center's Project for Excellence in
The study also found that more people -- 46 percent of
Americans surveyed -- said they get news online at least three
times a week, versus 40 percent who said they get their news
from newspapers and their companion websites.
"The migration to the Web is accelerating," said Tom
Rosenstiel, director of the Project for Excellence in
Journalism. "The quick adoption of the tablet (computer) and
the spread of the smartphone is only adding to that."
The latest findings show that newspapers suffered not only
from the economic downturn when advertisers snapped shut their
wallets, but that more people are choosing to go online for
news and information and advertisers are following them.
Indeed, newspaper companies such as Gannett (GCI.N), The
New York Times (NYT.N) and McClatchy (MNI.N) are still
reporting declines in advertising revenue when other media such
as television are enjoying a rebound in ad sales.
Newspaper ad revenue in 2010 fell 46 percent in four years
to an estimated $22.8 billion, with an additional $3 billion
more for online advertising according to the report.
Meanwhile online advertising is at $25.8 billion in 2010
the study said citing data from researcher eMarketer.
"A challenge for news organizations is that much of this
online ad spending, 48 percent, is in search advertising,
little of which finances news," according to the study.
Newspapers felt that impact over the last decade resulting
in shrinking staffs including reporters and editors. Newsrooms
are currently 30 percent smaller than they were in 2000, the
To make up for lost advertising revenue and fewer people
reading copies of print papers, newspapers are beginning to
charge for online access to their websites.
The New York Times, for instance, is preparing to start
charging for some of its content later this quarter.
However of the three dozen newspapers that have moved to
some sort of online pay model, only 1 percent of users opted to
Twenty-three percent of those Americans surveyed said they
would pay $5 a month for an online version if their local
newspaper ceased to exist.
(Reporting by Jennifer Saba, editing by Maureen Bavdek)