Google Expands AdWords to Print Ads November 13, 2006
The New York Timesreports that Google has plans to sell newspaper ads in addition to online ads. Google has already been very successful in selling online ads with its AdWords service and they want to expand this success to local print markets.
Google's plan will give the publishing business a high-tech twist: the company will expand its computer system, which already auctions off advertisements on millions of Web sites, to take bids for newspaper ads as well. Hoping to reach out to a new crop of customers, such as small businesses and online retailers, many of the largest newspaper companies, including Gannett, the Tribune Company, The New York Times Company, the Washington Post Company and Hearst, have agreed to try the system in a three-month test set to start later this month.
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.
Tom Phillips, who runs Google's print operations, said the company was attracted by the $48 billion spent every year in the United States on newspaper advertising. Google, nonetheless, is trying to position itself as a friend of the newspapers.
"Print adds value the Internet doesn't have," he said. Mr. Phillips, the former publisher of Spy Magazine, was hired by Google earlier this year. "It is a different browse-able reading medium."
Google should have at least some success widening AdWords to print. They already have a large advertiser base they can market the print service to.