“According to data from Australia collected over the past two decades, advertising revenue for newspapers has plunged 32 percent over that time, while circulation has remained largely the same. The overall advertising market has actually grown. Almost the entirety of the revenue loss for Australian newspapers has been the loss of classified advertising. It’s been almost completely eliminated in the Australian print media because the technological efficiencies of internet searches make online classified systems much for useful for consumers. There’s no reason for classified advertising in newspapers to exist any longer. Online is better. If you need proof, watchSaturday Night Live‘s recent parody advertisement about the nearly pornographic fascination some people have with searching for houses on Zillow.
This is all about the historically common disruption that new technologies cause in the marketplace. Newspapers are no longer the best at serving up advertising to consumers, so that market went elsewhere. After engines were invented, horses stopped being the most efficient way to travel. After electricity was invented, candles stopped being the most efficient artificial source of light.
Newspapers and media outlets have no moral right to claim this money for themselves. The advertising industry money should go to where it’s most effective. But because media outlets have been unable to replace the lost advertising, they’ve resorted to lobbying the government with claims that preserving newspapers is pivotal to the survival of democracy, riding on the current populist criticism of the size of tech companies.”