In yet another example of the merging of online and print media, the New York Times reported today that Google is partnering with 50 major US newspapers to sell ads that will appear in the print editions of these papers.
For Google, the test is an important step to the company’s audacious long-term goal: to build a single computer system through which advertisers can promote their products in any medium. For the newspaper industry, reeling from the loss of both readers and advertisers, this new system offers a curious bargain: the publishers can get much-needed revenue but in doing so they may well make Google — which is already the biggest seller of online advertising — even stronger.
This new pairing will be in testing mode for three months with approximately 100 advertisers, during which Google will not receive a cut of the ad revenue. Once the system is officially introduced, Google will receive a percentage for the ads placed.
Media executives are optimistic about this new partnership and the vast potential for revenue that it offers.
"Every day in the newspaper we have a fair amount of space we set aside for ads that we are unable to fill," said Owen Youngman, a vice president for development at The Chicago Tribune. "Google says they can bring us thousands of small advertisers for space we would otherwise fill with house ads, and we say 'Great.'"
This new system is further proof of the collaberative potential between the online and print worlds, and indicates that newspapers are willing to experiment with new forms of revenue in order to stay viable and competitive.
Tracy Bratten @ November 6, 2006 - 9:29pm
Perhaps, at the very least, this will boost revenue for the now-struggling print media that has seemed on the verge of death for some time. I find it interesting, though that this project will intertwine internet and print content in a way that hasn't been done before. The article lists some participating companies, like Ebags, which hasn't invested in print advertising to date. But it seems odd that they would choose to advertise in a medium that isn't clickable. How will the effectiveness of this system be measured? Guess we'll have to wait and see!
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