Google teams up with newspapers
While pundits have been predicting the demise of traditional print newspapers in the face of online news, Google’s announcement on Sunday that its advertisers will now be able to purchase advertising space in print newspapers via its Web site. http://www.cbsnews.com/stories/2006/11/06/business/main2154538.shtml
Newspapers owned by The New York Times Co., Gannett, the Washington Post Co., the Tribune Co. and Hearst are among the 50 initial newspapers in the Google Print Ad program. So far, 100 advertisers including Netflix have already signed up for the program.
Advertisers will be able to bid on quarter-page ads and the newspapers will decide whether to accept the bid or pass, similar to the way Priceline.com sells airplane tickets or hotel rooms.
Google isn’t the first – Mediabids.com, which was started by a former publisher in 2003, auctions ad space in 3,500 newspapers. Mediabids takes an 8.5% cut of successful bids. During the three-month trial, Google won’t charge a commission. But if the program proves successful, Google would take a cut starting next year.
Google executives say they see big opportunity in the service. So initially, I guess, that means that they don’t foresee the demise of print newspapers.
But others see it as an attempt to lure more newspaper advertisers – especially smaller advertisers to whom the less expensive ads would appeal – to the Internet.
"These days all newspapers have a Web presence, so offering advertising by means of Internet and offline ads means Google has the opportunity to use print customers and its huge networks of offline advertising customers, and monopolize advertising as we know it," consultant Jacqueline Hole told Forbes.com.
With advertising revenues slipping – the Newspaper Association of America says it is still a $49-billion business – the program can only help the newspapers’ bottom line.
posted by Mark H. @ 11/06/2006 07:28:00 PM
5 Comments:
If you were a newspaper publisher, what would you do? -- Amy Eisman
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If I were a publisher I would participate in the program. Since they can accept or reject the bids, the newspapers can get an acceptable price for the ad, although not the full price. The ads could be used to fill space on days when regular advertising space is low. That would also mean more news hole, since the amount of space editorial has to fill is usually based on the amount of advertising in any given edition.
--Mark Heckathorn
According to this article the merger of online and traditional media advertising will only benefit both formats.
I've actually been using Google AdWords at my job for a couple months now, with pretty poor results. It's a fairly complicated formula they use for determining ad showings and cost-per-click charges and things of that nature. We haven't seen many hits because of it, though according to Google our ad has been shown over two million times.
- Max Ashburn
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