It wasn’t your imagination. From today’s New York Times:

Newspaper advertising, already in its worst slump since the Depression, suffered by far the sharpest drop in generations during the first quarter of 2009, down 30 percent for some papers, industry executives and analysts say…people who follow the industry and have had a glimpse of the 2009 numbers say it is clear that once again, even the most pessimistic predictions were not dark enough. They are expecting declines sharp enough to wipe out profit margins at many papers that, despite two years of battering, had stayed comfortably in the black, and to push already-weak publishers closer to bankruptcy, perhaps even closure.