Found on Editor & Publisher, Merrill Lynch has released not so stellar results for the US newspaper industry's first-quarter advertising revenues. Predicted to rise 3.3%, ad income fell short by .3%. The printed press grew about 1.5% but Merrill Lynch said that much of this growth came from new products such as Hispanic publications and weekly papers. Web advertising exploded, increasing 40% "(saving) the quarter." The report emphasized the switch to online advertising with Google and Yahoo's incredible first quarter ad revenue growth (109 and 47% respectively), and a report by a major auto manufacturer who said that they are dedicating 25% of their ad budget to the Web.

Source: Editor & Publisher