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As the newspaper industry scrambles to update itself in the digital age, the New York Times's new electronic "Reader" will feature dynamic ads that allow users to click through to landing pages that contain more info - even when the user isn't online, reports MediaPost.

In the Times Reader beta (launched in Sept.), the newspaper's print ads are swapped out and replaced with larger online versions. Each Times page in the Reader has only one ad, located above the fold. The new format has already attracted advertisers, including AT&T, Columbia University and Tourneau.

The Reader is a downloadable application compatible with Microsoft Vista and Windows XP that makes the entire newspaper available for browsing in a format similar to the print edition. Once the Reader software is installed, the computer automatically downloads the latest edition of the paper, which can then be browsed even when the computer isn't online.

Stories appear in columns and blocks sized to fit on a computer screen for readability. Users can resize the text, choose different fonts, highlight key parts and make notes on the content at the bottom of each page.