Well I guess I overstated, newspaper advertising is only down 48% in the last five years, with no sign of a comeback-
Combined online and print newspaper ad revenues fell 6.9 percent to $5.9 billion in Q2, marking the 20th consecutive decline for the industry, according to the latest figures from the Newspaper Association of America.
The consecutive decreases began in Q306, when combined print and online ad dollars declined a mere 1.5 percent to $11.7 billion. Since that point, newspaper ad dollars have fallen 48.8 percent, and there is no sign of a comeback.
Here is what wikipedia says on the subject:
The primary source of newspaper income is advertising – in the form of "classifieds" or inserted advertising circulars – rather than circulation income. However, since the late 1990s, this revenue source has been directly challenged by Web sites like eBay (for sales of secondhand items), Monster.com (jobs), and Craigslist (everything).
When we need yard sign installers we throw an ad on craigslist naming the town, route size and we now have a database of over 2,600 weekend job applicants who have filled out a 24 question
online application from a link in the craigslist ad. If we ran newspaper ads they would either call or fax and it would eat up a lot more time on our end. We also wouldn't get all the questions we need answered, such as do you have a valid drivers license, insurance, a cell phone and internet access (our drivers need to reachable and able to do a weekly report online).
While I feel bad for people in the newspaper industry, I love the internet and what it can do for my business.