(By Salman - iStockAnalyst Writer)New York Times Co. (NYSE: NYT), the largest metropolitan newspaper in the United States, began selling display ads on the front page starting Monday, amid falling revenue and deepening recession.

Senior vice president and chief advertising officer of the company's media group said in a statement "This high impact placement represents an exciting new opportunity for our advertisers to reach our educated, affluent and influential readers across the country."

Warren also said that the newspaper has the largest seven-day readership in the U.S., with 2.8 million readers on weekdays and 4.2 million on Sundays.

US media giant CBS Corp (NYSE: CBS)  was the first front page advertiser. The ad is two-and-a-half inches high and lies horizontally across the bottom of the front page. In a statement, the paper said such ads would be placed “below the fold” — i.e on the lower half of the page. Though the newspaper refused to divulge the exact details, it is being understood that premium rates are being charged for the ad.

George Schweitzer, President of the CBS marketing group stated that CBS views New York Times' front page ad as a “new means of prominently showcasing our valuable media properties.”  He added “We are long-time believers in the New York Times, the value of advertising there.”

With the latest move, New York Times finally joined a long list of newspapers that run front page advertising including USA Today, The Wall Street Journal and the International Herald Tribune. Washington Post however still doesn't sell display ads in the front page. Selling front page ad is usually scoffed at by traditionalists though difficult circumstances has forced many in the industry to look for newer sources of revenue.

Deepening recession has only compounded problems for newspaper industry. They have already been reeling under the impact of dwindling readership and circulation. Various studies in recent times have confirmed that more people are accessing online sources for news and information rather than newspapers.

According to reports, New York Times is actively seeking a buyer for its 17.5% stake in the holding company for the Boston Red Sox and New England Sports Network. The company has also signaled that it plans to borrow up to $225 million against its Eighth Avenue headquarters building  

Ad revenue at New York Times plunged 20.9% year on year in November, the biggest drop in percentage terms since December 2007.

Shares of the company were trading at $7.64, up 5 cents or 0.66% in afternoon trade.

Disclosure: Author does not own any of the stocks discussed here.