Based on the two-sided markets perspective, this study examines the cross-group externalities between readers’ market and advertisers’ market by using Granger causality test with such two indicators as the print run and advertising revenue of Chinese newspaper market from 1996 to 2013. The Granger causality test shows that advertising revenue is the Granger cause of print run while print run is not the Granger cause of advertising revenue. And then, after discussing whether cross-group externalities in a two-sided market must be a two-way thing or not, it comes to the conclusion that Chinese newspaper market is a two-sided market, where advertisers plays a dominant role in the market development and advertising gives rise to increased newspapers print run.