The new numbers released this week were bad enough for a newspaper industry that lost nearly 3% of its circulation in the last year. But when you factor in subscriber discounts, the economic picture gets worse. And the industry’s efforts to compensate for decreasing circulation with increasing online readership may not stand up to scrutiny.

Sandwiched between a declining print industry and an online universe still building economic momentum, newspaper companies are looking at combined Internet and newsprint readership as a new way of measuring audience. A big unanswered question is whether advertisers will agree that this is a more accurate way to count their potential customers.