Google, Inc. (NASDAQ:GOOG) is beginning a test an ad program with large newspapers. Local advertisers that use Google's AdSense text ad program, which makes up almost all of the search giant's revenue, can now extend their AdSense buy to print newspapers in order to pick up a larger audience, and, in theory, more customers.
The problem is that newspapers, as a print medium, cannot target audiences with the laser focus that AdSense can.
In addition, local newspapers are already running a large number of local classifieds. However, that business is dropping sharply. It is going away for two reasons. One is that Internet sites like CraigsList and CareerBuilder are more efficient at getting leads. The other is that newspapers are losing their circulation, mostly to online news sources. As circulation drops, ads become less effective. You know how the saying goes -- you can't make a silk purse from a sow's ear.
Selling more ads -- even if they appear to be targeted -- into a dying medium, is not going to solve the core problems that newspapers face. They don't work for advertisers anymore.
Now, if Google would step up its program to target ads to the newspapers' online websites like nytimes.com, that might help large paper chains a great deal. And, it would make sense. AdSense.
Douglas McIntyre is a partner at 24/7 Wall St.
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Reader Comments (Page 1 of 1)
11-07-2006 @ 12:37PM
Kevin said...
what a nimrod, obviously you don't read print and that's too bad because it's part of a healthy news diet that is essential and advertisers do get it.
Perhaps you missed it but smart people do read newspapers, magazines and advertisers know it.
I read online, print, I watch TV and I don't see any of them dying. Changing, yes but not dying.
I love online but it's not taking my San Francisco Chronicle away just yet.
11-07-2006 @ 11:52AM
douglas mcintyre said...
Tell that to the shareholders who have seen the price of their newspaper stocks cut in half and the
newspaper employees on the unemployment lines.
Doug McIntyre
11-07-2006 @ 2:01PM
George kellam said...
Liberal news papers dont get it 50%of thier readers are turned off with liberal slants to NEWS stories. Would you start a company where only 42% of custmers would want the product. Hopefully corperations who buy these papers will tell editors to leave thier opinions on the editorial page No matter what columbia`s journialism school thinks (thier job is not to save the world)
1-01-2007 @ 3:20PM
mm said...
I work for a recruitment ad agency in sales. I don't see print dying. i'm from ny. many of my non profits, manufacturers and transportation companies need to target the local paper market to get there employees. online doesn't do it for them. the non profits run local ny metro job fairs and need face to face interviews with social workers, counselors. etc. it depends on the industry. but i think newspapers will be here a long time. i read the newspaper every day on the way to work. i don't whip out my laptop and read the news.
mm