Your customers are ahead of you

The Newspaper Association of America reports a surge in online traffic and audience to newspaper online sites.

On average, over 56.9 million people visited newspaper sites each month in Q3 2006, up almost 24 percent since Q3 2005. . . . The group earlier this month reported unique visitors to newspaper sites rose 31 percent during the first half of 2006 over the same period in ’05. Unique visitors to paper sites averaged more than 55.5 million per month during the first six months of ’06, up almost a third from the 42.4 million during the first half of last year. Newspaper sites generated 2.7 billion pageviews in the third quarter, and visitors spent more than 41.5 minutes each month on the sites, according to the report. During that period last year, visitors viewed around 1.9 billion paper pages, spending 40.4 minutes on the sites on average monthly.

I think this further feeds the idea that newspapers are in “free fall,” as The Times said last week: The rush online is getting faster and faster and if media execs and ad execs don’t catch up, they will be left behind… sooner than they think.

: I call out ad execs for a reason: They are holding back the progress in media. Oh, it’s the fault of media execs as well. But get a load of these stats from today’s Times:

Indeed, the Internet draws only a sliver of the total spent on advertisements. Last year, Internet ads accounted for just 4.7 percent, or $12.5 billion, of the $267 billion spent on advertising, according to the Interactive Advertising Bureau, a trade association of online publishers. And the top 50 advertisers spent just 3.8 percent of their budgets in the first half of this year on online ads, excluding search, TNS Media Intelligence data shows. For all other advertisers, the average spent online was 6.8 percent of the budget.

Procter & Gamble, the nation’s biggest advertiser last year, spent $33.5 million — less than 1 percent of its $4.6 billion ad budget — on online ads in 2005. General Motors, the second-biggest advertiser, spent $110.5 million online, or 2.5 percent of its $4.35 billion total, according to TNS, which does not include search ads in its figures.

The essential change in media is that we, the people, won’t go to where you are anymore. You have to come to us. And you’re not.

: LATER: The latest circulation stats for newspapers continue to back up the notion of free fall. Romenesko’s summary:

* Los Angeles Times daily circulation dropped 8%; down 6% on Sunday.
* San Francisco Chronicle dropped 5.3% daily; down 7.3% on Sunday.
* New York Times dropped 3.5% daily; down 3.5% on Sunday.
* Boston Globe dropped 6.7% daily; down 9.9% on Sunday.
* Washington Post dropped 3.3% daily; down 2.6% on Sunday.
* Wall Street Journal dropped 1.9% daily; WSJ Weekend Edition down 6.7%.
* Chicago Tribune dropped 1.7% daily; down 1.3% on Sunday.
* USA Today dropped 1.3%.