newspapers

Alarming new advertising data extracted from media industry bible the Standard Media Index has revealed online ads are failing dismally to fill the breach as the traditional rivers of newspaper gold turn to treacle. An analysis of the latest SMI data, released last month and obtained by Crikey, shows that metro and national newspapers lost $188.94 million in agency spend for the last financial year, whereas in digital Fairfax and "New News" clawed back just $14.84 million. In other words, for every $1 lost from newspapers, online news made up about 8 cents, a disastrous "compression ratio" of about 10 to 1. Factoring in regional press and other newspapers, and the fact The West Australian digital operation is now included in Yahoo!7's numbers (with no increase on last year), the net loss from the shift to digital from newspapers is at least $164 million over the 12 months to July. And in further bad news for News, the $14 million digital increase was virtually all Fairfax ($14.08 million), while News was only "up" $762,463. Rupert's local arm copped an ugly $316,637 haircut from Shespot/News Life Media to net out at under $500,000 of new revenue.