Online ad revenue is gaining major credibility among newspapers who, just a few short years ago, had dismissed internet ads as an inconsequential part of their business model. Now, though, the power balance has shifted to the online world and newspapers are scrambling to keep up. A good number of publishers have joined with Yahoo in the creation of a shared network for the selling of classified and jobs ads. Separate from that, Tribune Co, McClatchy and Gannett have formed their own ad sales network, giving potential buyers one-stop access to all their online titles.

Unfortunately, says one analyst, the dollar amount that can be charged per online reader is miniscule compared to that for a print reader. That will lead to more staff cuts as papers optimize their manpower and declining operating income as the papers adjust to new economic realities. That disparity of ad income per reader will also have quit an impact when you consider many people are abandoning print versions altogether in favor or reading the paper online.

Revenue growth numbers continue to erode every year as it becomes clearer and clearer how much market share has been lost by papers. That might be turned around if the papers tap into what some say is the one remaining growth opportunity available to them, national advertising. The problem with executing on this is that without a network of papers that cross regional lines, national advertisers are reluctant to buy ads in local papers. That's where networks like the one setup by Gannett/Tribune/McClatchy may have an advantage.