The Newspaper Association of America says the industry's revenue fell 2.6 percent to $37.59 billion in 2013.
Revenue from print advertising dropped 8.6 percent to $17.3 billion, while circulation revenue rose 3.7 percent to $10.87 billion.
Newspapers have looked in recent years to replace declining print advertising and circulation revenue with contributions from online sources.
While digital advertising revenue increased 1.5 percent to $3.42 billion last year, it is still less than 10 percent of the industry's overall revenue.
The NAA's numbers are based on a sample of public and private company data collected on a confidential basis.