CORE Metadata, citation and similar papers at core.ac.uk Provided by Research Papers in Economics Newspaper vs. Online Advertising – Is There a Niche for Newspapers in Modern Advertising Markets? Nadine Lindstädt Oliver Budzinski September 2011 © University of Southern Denmark, Esbjerg and the authors, 2011 Editor: Urs Steiner Brandt Department of Environmental and Business Economics IME WORKING PAPER 113/11 ISSN 1399-3224 All rights reserved. No part of this WORKING PAPER may be used or repro- duced in any manner whatsoever without the written permission of IME except in the case of brief quotations embodied in critical articles and reviews. Oliver Budzinski Department of Environmental and Business Economics University of Southern Denmark Niels Bohrs Vej 9-10 DK-6700 Esbjerg Tel.: +45 6550 4159 Fax: +45 6550 1091 E-mail:
[email protected] Nadine Lindstädt Department of Environmental and Business Economics University of Southern Denmark Niels Bohrs Vej 9-10 DK-6700 Esbjerg Tel.: +45 6550 1523 Fax: +45 6550 1091 E-mail:
[email protected] Abstract Newspapers have experienced declining circulation figures and declining adver- tising revenues for several years. In particular, declining advertising figures put a threat on newspapers – this is especially severe in the US where 73% of their revenues are generated through advertising. On the advertising side many com- panies have expanded their advertising expenditure towards online. Conse- quently, there are concerns about online advertising substituting newspaper ad- vertising – in the same way as it has been feared for many years for the reader- ship side. Both possible effects might put a threat on the further existence of (print) newspapers.