On a cheerier note, Jonathan Knee writes in Barron’s that recession and crushing debt are masking the fundamental soundness of many newspapers — especially monopoly papers with a circulation of 100,000 or less.

Outside Bagel World in Peabody

There’s an absolutely terrifying story about the newspaper business making the rounds today, and it’s not the one about print circulation falling another 10.6 percent. That’s hardly a surprise, given the continued rush to online — pushed along by papers like the Boston Globe and the Boston Herald raising the price of their print editions.

No, the truly ugly news is a story in the New York Times by Stephanie Clifford, who reports that companies increasingly see newspaper Web sites as a place for premium, special-event advertising, but not for everyday ads. For the latter, they use online networks, which cost a fraction of what newspapers charge.

According to the Audit Bureau of Circulations, the Globe’s daily circulation fell 18.4 percent, and now stands at 264,105. On Sunday, it’s fallen by 16.9 percent, to 418,529. In its heyday, the Globe’s Monday-through-Saturday circulation was more than 500,000, and on Sundays it was north of 800,000.

The Monday-through-Saturday Herald stands at 138,260, down 17.5 percent. The circulation of the Sunday Herald dropped 5 percent, to 95,635.

If you had told me five years ago what the print circulation of the Globe and the Herald would be today, I’d like to think I would have been entirely unsurprised. On the other hand, I know I would have been shocked that advertising revenues had not followed from print to online.

If the eventual end of the recession doesn’t provide some relief to the beleaguered newspaper business, you really have to wonder how this will all end.

Joel Brown calls a television commercial put out by Boston Mayor Tom Menino’s re-election campaign, featuring his empty desk, “a terrible spot” and — with a bit of rewriting — “an excellent ad for one of his opponents.”

Adam Gaffin adds: “Maybe this is what happened to Curley’s desk.”

The disastrous error that newspapers made early in our digital lives was treating online advertising as a throw-in or upsell for their print advertisers. Helping businesses connect with customers was always our business. We were facing new technology and new opportunities and we did next to nothing to explore how we might use this new technology to help businesses connect with customers.

We just offered businesses the same old solutions that we offered in print, but pop-up ads and web banners somehow didn’t work as well as display ads. Which was just as well, because we told our business customers the ads weren’t worth much by the way we treated them.

Having blown the online-advertising business, newspaper executives are now going to make up for it by charging for online content — likely with miserable results. (Via Steve Yelvington.)