As circulation drops, the publisher ends up with a weaker argument, and then ad revenue starts dropping -- and that is death.
I don’t think most advertisers are getting much for their newspaper ad money, and know it, that’s the real problem. The newspaper readership is decidedly dumbed down, and has little money. Demographics of the readers is what advertisers focus on, not eyeballs.
Internet is where it’s at, but so far the advertisers haven’t been able to capture the audience.
Same thing is happening with TV ad revenues, just not as severe ... There is a fellow on the net who tracks such stuff, I don’t have a link, but will look for it.