Google Inc. (NASDAQ: GOOG) has signed an exclusive pact with Time Warner Inc.'s (NYSE: TWX) CNN unit to use Google's AdSense advertising program for text-based ads.
The AdSense service will place contextually relevant ads alongside CNN.com content, allowing both small and large advertisers to target CNN.com specifically. Google will serve as the exclusive provider of auction-based text advertisements throughout CNN.com.
Without seeing the contracts it is impossible to know how this ad money will be divided, and it isn't known if Google had to pony up cash or any guarantees to get this on an exclusive basis. The Google pact isn't exactly a huge surprise either because if you look at the CNN.com site, its search function already has the "POWERED BY GOOGLE" feature.
It may be a surprise that CNN isn't using the Advertising.com platform, although it would seem a safe bet that this could fuel all sorts of speculation between the two platforms. After the strong advertising reach the company showed in the most recent comScore data it would seem quite a strong platform. This also brings more 'outside revenues' rather than one Time Warner unit generating revenue for another unit. CNN is not part of AOL so this would 'likely' be independent of any future arrangements between the two companies.
Update (Aug 29): An email sent to me from a CNN employee states that the relationship is still there and this will not affect the Advertising.com pact with CNN.
Jon Ogg is a partner in 24/7 Wall St., LLC; he produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.
Google (GOOG) gets CNN exclusive ad pact
Posted Aug 28th 2007 12:50PM by Jon Ogg
Filed under: Google (GOOG), Time Warner (TWX), Marketing and Advertising
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Reader Comments (Page 1 of 1)
8-28-2007 @ 4:52PM
Stanley Lauredo said...
Jon,
With all due respect, Advertising.com does not have a contextual text ad product. It's a display network.
However, I'm surprised CNN didn't go with Quigo which recently signed an exclusive deal with Time's web properties. Must be that Google paid a lot for this (to keep Yahoo! and Microsoft out perhaps).