Earlier today, Google chief economist Hal Varian gave a presentation to an FTC workshop on the changing economics of the newspaper industry. We all know that newspaper ad revenues have been falling off a cliff for years. Many media companies blame Google and are trying to put the genie back in the bottle with partial metered models for online news.

Google is understandably on the defensive, trotting out Varian to paint an unemotional picture with as much data as he can muster. But the picture he paints is a dour one for print media. For instance, the chart above shows the decline of overall newspaper ad revenues. Newspapers have taken huge hits in classifieds advertising (in blue) and national brand advertising (in red). The online portion (green) is still too small to make much of a difference. → Read More