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Introducing banner ads to pay for growing payments in 1999, Fulp partnered with Troma, who hosted the site in exchange for a share of ad revenue.A chat room and message board was added onto the website, which allowed people visiting the website to interact with each other.That same year, major changes to the website included the launch of the video player, allowing users to publish movies that were not in .

Art and audio compositions are processed using a different method called "Scouting".Ad revenue had increased, so Ross was hired, starting development of the current automated Portal, which would allow users to submit their own generated content to the website and have it judged by anyone visiting.After the dot-com bubble collapsed, Newgrounds struggled in paying its hosting costs.Another communication system developed on the site, termed "Private Messaging" and abbreviated as PM, is also granted, similar to the service of email where users can send messages via the site to other users. Any user breaking the rules of site use anywhere on the site can be sent warnings or subjected to sanctions, such as restrictions of membership or banning, by the Moderators or Staff.In 1991, at the age 13, Tom Fulp launched a Neo Geo fanzine under the name "New Ground" sending issues to approximately 100 members of a club originating on the internet in Prodigy.

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User-generated content can be uploaded and categorized into either one of the site's four web portals: Games, Movies, Audio, and Art.