The struggle faced by newspapers that are currently battling to keep their subscriber base due to the significant online competition as consumers start to use their mobile devices on an increasing basis for reading their news every day.
According to Amy Mitchell from Pew Research Center, consumers are moving away from the trend to search for news and are now using their mobile devices to use a specific news app or website. She added that “People are committing to go back to the brand or outlet they like and trust — and will pay for that content.”
According to a report just released by the Project for Excellence in Journalism at the Pew Research Center – using Nielsen Online data – revenue was still the primary issue in 2011 regardless of the 17 percent growth in unique visitors that was seen every month by the top news websites.
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In Pew’s report, “the State of the News Media 2012”, there was a 23 percent increase in online advertising last year, but approximately half of all of the display ad revenue is comprised of only five large tech companies.
The news companies had pretty much been cut away from this rapidly growing source of revenue, which was worth approximately 45 percent of the mobile ad market, or $653 million. Furthermore, American newspapers reported that for every $1 it made in online revenue last year, it lost $10 in its advertising revenue from its print format.
Mobile apps are predicted to help to attract subscribers and assist those newspapers in overcoming these income hurdles.