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A newspaper typically generates 70–80% of its revenue from advertising, and the remainder from sales and subscriptions.[31] The portion of the newspaper that is not advertising is called editorial content, editorial matter, or simply editorial, although the last term is also used to refer specifically to those articles in which the newspaper and its guest writers express their opinions. (This distinction, however, developed over time – early publishers like Girardin (France) and Zang (Austria) did not always distinguish paid items from editorial content.)
The business model of having advertising subsidize the cost of printing and distributing newspapers (and, it is always hoped, the making of a profit) rather than having subscribers cover the full cost was first done, it seems, in 1833 by The Sun, a daily paper that was published in New York City. Rather than charging 6 cents per copy, the price of a typical New York daily at the time, they charged 1-cent, and depended on advertising to make up the difference.[32]
US Newspaper Advertising Revenue
Newspaper Association of America published data [33]
Newspapers in countries with easy access to the web have been hurt by the decline of many traditional advertisers. Department stores and supermarkets could be relied upon in the past to buy pages of newspaper advertisements, but due to industry consolidation are much less likely to do so now.[34] Additionally, newspapers are seeing traditional advertisers shift to new media platforms. The classified category is shifting to sites including Craigslist, employment websites, and auto sites. National advertisers are shifting to many types of digital content including websites, rich media platforms, and mobile.
In recent years, the advertorial emerged. Advertorials are most commonly recognized as an opposite-editorial which third-parties pay a fee to have included in the paper. Advertorials commonly advertise new products or techniques, such as a new design for golf equipment, a new form of laser surgery, or weight-loss drugs. The tone is usually closer to that of a press release than of an objective news story.
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