As advertising rates fall where does this leave the media economic model?

Along came the Internet and advertisers thought that finally they could actually track how effective their spend was. They could tell how many times people were drawn to their ad (click) and what happened afterwards. But recent market evidence is showing that as economic times grow harder Web advertisers are looking more and more for proof that a Web display ad campaign will really work before they are willing to make a long-term commitment

writes Philip Stone over at Follow the media.

Once again questions can be asked about new media's ability to find a sustainable economic model and he adds

None of that is what traditional media needs to hear these days. Everyone accepts that newspapers have to be multi-platform and that means all of their digital projects have to make up the money that print is losing, so far a losing battle. If Web display advertising is slowing down, then that’s not going to help the cause any.

The cross subsidary model of the web supporting the traditional media may well be falling away and at the moment,there is little prospect of a new one taking its place.