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NYT, Gannett, Tribune report declines, Google up

All three newspaper companies experienced significant revenue declines as advertisers continue to shift money from print to the web. But the story here is the competition for those online ad dollars. The NY Times Company reduced its 2007 guidance for online ad growth, citing the advertising environment as “difficult.” Says one analyst, “There is stiff competition for internet advertising, and the transition (for newspapers from print to the web) will take longer and may well be less profitable than was anticipated.” This underlines the urgency for media companies to expand aggressively into new, local, niche internet businesses with high revenue potential.

Meanwhile: Google’s first quarter profit skyrockets 68 percent, beating analysts’ expectations once again. CEO Eric Schmidt said Google was “still at the beginning” of its core search and text-based advertising business, and he said the company expects its traditional newspaper, radio and TV advertising services to be big businesses by 2008.

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