A Penny Bought Attention, Not News
Benjamin Day launched the New York Sun in 1833 at one cent, selling readers’ attention to advertisers instead of selling the paper for profit. It worked—and it turned audiences into inventory¹.
The Model Scales—and Splinters
Steam presses and rising literacy pushed the penny-press template nationwide, locking newspapers into an ad-subsidy loop that lasted well into the 21st century². But once ads moved online, platforms perfected an industrial harvest of micro-moments. Google’s AdWords auction in 2001 sold intent by the click; Facebook sold identity by the slice³.
The Duopoly’s Drain on Local Cash
By the mid-2010s Google and Facebook were taking roughly 60 percent of all U.S. digital ad spend, leaving publishers with scraps⁴. Print ads—still the biggest revenue column for locals—fell 71 percent from 2000 to 2012⁵.
When Revenues Fall, Reporters Go First
Gannett’s cost-cutting playbook produced repeated “bloodbaths”—hundreds dismissed after each quarterly earnings stutter⁶. Nationwide newsroom employment fell 26 percent between 2008 and 2020, creating today’s “ghost papers” that recycle wire copy and skip zoning-board votes⁷.
The Ad-Blocking Revolt
Apple’s 2015 iOS 9 update let users nuke trackers and pop-ups. Millions installed blockers overnight. Industry lobbyists called it “robbery” and “a threat to democracy,” but users preferred speed and privacy⁸. The old bargain—free news for forced eyeballs—shattered.
First-Party Trust or Bust
Surveillance ads proved fragile. First-party email lists and sponsor narratives anchored in community are slower but sturdier. Mercury Local opts for minutes read, replies sent, and coupons redeemed—metrics Big Tech can’t steal.
Endnotes
- Day’s penny-press gamble and attention-as-product Attention Merchants, Th…
- Penny-press dominance through early 2000s advertising cycle Revolutions in Communic…
- Programmatic micro-moment auction, Google & Facebook rise Attention Merchants, Th…
- Duopoly’s 60 % share of U.S. digital ads Ghosting the News – Mar…
- 71 % collapse in print ad revenue 2000-2012 Ghosting the News – Mar…
- Repeated Gannett layoff “bloodbaths” and executive payouts Hedged (The History of …
- 26 % newsroom job loss 2008-2020; rise of ghost papers Hedged (The History of …
- Apple iOS 9 content-blocking and publisher backlash Attention Merchants, Th…
About the Author
Running on a double cold-brew drip, Peter Cellino trades tweets for Bluesky—drop a note at @pc51.bsky.social. Dig deeper on the Blog, crunch the numbers in Case Studies, scout the Resource Library (grab the free Local SEO Playbook), or explore ad spots with Mercury Local, the Charlotte Mercury, and Strolling Ballantyne.
Footnotes & Fine Print
Enjoy the read? Peruse our policies and ping us anytime:
Terms of Service | Privacy Policy | About Us | Contact
Creative Commons License
© 2025 Mercury Local / Mercury Local
This article, “Attention Merchants: How Ad Auctions Bankrupted Local News,” by Peter Cellino is licensed under CC BY-ND 4.0.
“Attention Merchants: How Ad Auctions Bankrupted Local News”
by Peter Cellino, Mercury Local (CC BY-ND 4.0)