Spending for advertising has not changed overall, however it has shifted from newspapers to "online" which includes newspapers and google, but also "everyone else" (
https://www.statista.com/chart/372/quarterly-growth-of-us-on...). The newspapers maybe should pursue the ad revenue from TV, or find a way to cut out google.
Relying on subscriptions is not a valid model for every newspaper. "General purpose" newspapers co-evolved with advertising, which made them pursue large audiences. "News" themselves are advertisements, things to be disseminated, unless we 're talking about some specialized report that only experts can understand. The fundamental need of people to "get the news" is easily satisfied with anything, from facebook to reddit, and people are not going to be paying to have things advertised to them en masse. Subscriptions will eventually lead to the content being increasingly less popular and specialized, which means either the nature of the content will have to change or some of them will shut down. It works when 4-5 major newspapers do it, but when every newspaper becomes subscription-based, the model will break down for all of them.
Also i find it hard to believe that readers "want immersive experiences, well-designed pages with fonts, graphics, photos, and videos coming together into a compelling format". If anything those pages are annoying as hell (bloomberg autoplaying the videos on its articles is a culrpit here). In fact this techcrunch article is enjoyable because it almost pure text and it didnt need any fancy fonts.