The papers are coming out strong and looking for ways to continue to monetize their traffic.

Google has launched print ads where adwords advertisers can now buy inventory in over 250 newspapers. Advertisers can select which papers they would like to run their ads in, enter a price they are willing to pay, and wait to hear back from the publisher on whether or not they want to accept the bid.

Some stats from NORI Research, How America Shops & Spends 2006
Scarborough Reader Engagement Study 2006:

40% of readers say newspapers have trustworthy ads - more than any other medium
85% of readers say they have bought something advertised
62% of reasers not doing any other activity when reading the newspaper

More information on the google print platform:

http://services.google.com/training/adwords/printads/print_adwords/#slide=1