Rupert Murdoch's News Corp. is reportedly taking an advertising hit at its London dailies, The Times and the Sunday Times, which recently erected pay walls, according to The Independent.

The Independent reports ads are down some 90% on those sites:

Faced with a collapse in traffic to thetimes.co.uk, some advertisers have simply abandoned the site. Rob Lynam, head of press trading at the media agency MEC, whose clients include Lloyds Banking Group, Orange, Morrisons and Chanel, says, “We are just not advertising on it. If there's no traffic on there, there's no point in advertising on there.” Lynam says he has been told by News International insiders that traffic to The Times site has fallen by 90 per cent since the introduction of charges. “That was the same forecast they were giving us prior to registration and the paywall going up, so whether it's a reflection on reality or not, I don't know.”

He warns that newspaper organisations have less muscle in internet advertising campaigns than they do in print. “Online, we have far more options than just newspaper websites - it's not a huge loss to anyone really. If we are considering using some newspaper websites, The Times is just not in consideration.”

Others have their concerns. Adrian Drury, a media analyst at Ovum who has studied the impact of paywalls, says. “Fundamentally, at a brand-value level, you are killing the idea of times.co.uk as a channel choice for news online. That is something that is very difficult to recover.” There is also a widespread lack of enthusiasm for the new look Times website. “The most disappointing thing for me is that there doesn't seem to have been any strategy to create unique, compelling content that would differentiate the online product,” says Paul Bradshaw, a specialist in new media journalism.