Higher newsprint costs, a shaky advertising environment, and declining circulation have been plaguing the newspaper industry. The high cost of newsprint is a constant problem for newspapers; however, the industry has been able to cut costs through the increased use of recycled fiber. With respect to advertising, newspapers have been struggling in the midst of an economic recession that has triggered a soft ad market, particularly in the automotive, retail, and employment sectors. In fact,
2008 was the r. worst year ever for the U.S. newspaper industry. Total ad revenues were down 16.6
percent or $7.5 billion. Classified advertising, down 29.7 percent, took the brunt of the decline. Print advertising was down 17.7 percent, while online advertising was down 1.8 percent. To make matters worse, the pace of the decline in newspaper advertising is accelerating: from a decline of 7.4 percent in late 2007 to a decline of 19.7 percent by late 2009. In response, many newspapers have been forced to close, while others have cut staff.