November 6, 2006

Google is to sell advertising space in fifty large U.S. newspapers, expanding the company's efforts to provide advertising services and making it easier for advertisers to display products in print.

According to news reports, a group of more than one-hundred Google advertisers will be able to place bids in newspapers owned by the New York Times, Gannett, the Tribune Company, the Washington Post and Hearst Publications during a 3-month test period.

Some newspaper executives look at Google's newly-proposed system as a way to boost sales, at a time when all newspapers struggle with lower readership numbers and overall increased competition from online advertising.

The affected newspapers downplayed any risks of letting Google handle their relationships with advertisers.

"Overall, we go into this with both eyes wide open," said Mike Lemke, senior v.p. for sales and marketing at Seattle Times.

Google's move also enables it to gain more customers during its pursuit of print, radio and TV advertising.

"As a whole, print adds value the Internet doesn't have," said Tom Phillips, who runs Google's print operations. "It is a different browse-able reading medium."

To be launched next week, Google's newspaper advertising project will allow companies to select specific newspapers and special sections for their ads.

Advertisers would place bids on ad size, sections and days a newspaper is offering and the publication can view the bids and make some selections. The newspapers can choose to accept as many or as a few bids as they like at any time.

Newspaper executives said Google's new system will enable them to tap into a group of advertisers they don't currently have, including smaller businesses and retailers.

Google won't be earning any revenue during the test, but when the system is formally introduced in 2007, it will take a percentage.

Source: Red Orbit