Google to broker newspaper ads

Google's giving back, or at least sharing the wealth with all those newspapers it's been stealing business from over the past few years, testing a new program that lets its hundreds of thousands of customers advertising on its website, like Netflix and eHealth, also buy ads in publications from the New York Times to the San Jose Mercury News.
Jim Friedland with Cowen & Co. says, "It remains to be seen how big this can be, but the newspaper industry at this point will go wherever it can to get revenue even if it is against their number one competitor."
Google will act as a kind of middle-man, helping its customers not only bid on keywords for their net advertising, but also letting them bid on open newspaper space - taking a small commission for every print ad it sells.
Although newspaper advertising has been plunging in recent years, while Google's advertising revenue has been exploding, print ads are still a $19 billion market by offering print ads too, Google may attract a number of advertisers who might not have otherwise considered an online strategy.
Mark Mahaney, Citigroup, says, "Advertisers are looking for a way to market their messages, not just on the internet, but obviously everywhere, and this will be one of the first times that Google gives them the opportunity to do that."
Reports say a group of more than 100 Google advertisers will be able to place bids for space in newspapers owned by The New York Times Company, Gannett, the Tribune Company, the Washington Post Company and Hearst during a three-month test period.
Newspaper executives see the proposed system as a way to increase sales as they struggle with reader migration and competition from online advertising.
The newspaper effort, being launched this week, will allow advertisers to pick specific papers and sections for their ads.

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From : WIStv Columbia