Google chief economist Hal Varian: "[The] real money in search engine advertising is in the highly commercial verticals like Shopping, Health, and Travel. Unfortunately, most of the search clicks that go to newspapers are in categories like Sports, News & Current Events, and Local, which don’t attract the biggest spending advertisers. ... This isn't so surprising: the fact of the matter is that newspapers have never made much money from news. They’ve made money from the special interest sections on topics such as Automotive, Travel, Home & Garden, Food & Drink, and so on. These sections attract contextually targeted advertising, which is much more effective than non-targeted advertising. ... Traditionally, the ad revenue from these special sections has been used to cross-subsidize the core news production." Read More...