In what may be an early indicator of broader Web advertising trends, the New York Times announced today that it saw total Internet advertising revenues decline 3.8 percent.
The online falloff contributed to a 20.9% drop in overall ad revenues and a 13.9% decline in the company’s total revenues last month. It also signals a further chilling of the online ad market for newspapers and other Web publishers. The company is counting on rising digital revenues to offset the long-term decline in print advertising and circulation battering the entire newspaper industry.
BNET notes an even bigger online issue:
An entire wave of Web 2.0 players – YouTube, MySpace, Facebook, Digg, Twitter, Flickr, etc. – have started losing their luster as it became clear they had not developed a sustainable business model. Although venture capital continued to fuel a vibrant sector of startups, the major question looming over these emerging companies was how they would attain the necessary scale to become profitable.
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