The World Association of Newspapers` (WAN) annual survey has shown that, while newspapers worldwide suffered a decline in circulation figures, Internet consumption and advertising levels were much stronger than anticipated, with online readership tripling since 1999.
The survey, which WAN has published annually since 1987, includes information on 70 countries, and shows that in the European Union, 11 of 15 countries surveyed reported circulation losses in 2002 compared with 2001.
At the same time, figures show that while the rapid growth in the number of online editions has stabilised, some 79% of newspapers have their own Web sites, compared with only 52% in 1998.
Despite the slowing down of the Internet boom, there have been major markets that have demonstrated Internet advertising improvements and consumption of newspapers online - measured in page impressions - is increasing.
"The major developed markets are all showing decline, with falls in circulation in the US, Japan and particularly Europe," says Timothy Balding, the director-general of WAN, which represents 18 000 publications worldwide.
"The print industry has weathered a particularly challenging year and while we may see our paper-based circulations under pressure, online readership is booming."
Russel Yeo, chairman of SA`s Online Publishers` Association (OPA), says that usage volumes, although he stresses this is not the same thing as a tripling of the number of users, have tripled in SA, although the local market has not seen the same drop in print circulation.
"The real issue is that an increase in volumes does not necessarily mean an increase in profitability, so we still have a lot of work to do, particularly in terms of convincing some of the mainstream advertisers about the viability of the online medium," says Yeo.
"To start with, we need a single, trustworthy measuring system to show user numbers. This is something the OPA is busy working on at the moment."
He says the online industry must learn that it needs to show advertisers a clear and coherent reason why they should use this medium.
"Too many players have a tendency to talk 'dot-com` at people who are cynics. There is no point in throwing terms like page impressions at advertisers, we need to speak to them in understandable terms," he says.
"At the same time advertisers need to understand that, while the online audience is relatively small, it is who the audience is comprised of - namely wealthy, white-collar decision-makers - that really matters.
"The Internet is one area where you get the attention of a highly focused group of industry opinion leaders, which is why I feel it is a medium that can only grow bigger from here."
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