As consumers move to the Net, advertisers are following them. Over the next five years, the Internet is projected to hold ten percent, or $23.5 billion of the entire advertising market.

These five years will be very trying for newspapers.

As advertisers shift to the Internet, more money will be siphoned from newspapers. Although many newspapers with recognized names have established strong Web presences, some analysts don't think they have done so fast enough, and certainly not fast enough to maintain their high profit margins.

Print circulations may be declining, but Internet readership is on the rise. However, Internet advertising only accounts for a small portion of newspaper revenue today, a fact which could be detrimental to their longevity while advertisers get used to the web.

Newspaper companies will have to accept lower revenues and experiment with different business models as traditional media weather the Internet storm.

Source: InternetWeek