Google Ends Sale of Ads in Papers after 2 Years
January 22, 2009
Source: NY Times
By: MM Network
Google’s efforts to expand its advertising empire beyond the confines of the Internet have hit their first major setback. The company said that it would end a two-year-old program to sell ads in newspapers because the effort, called Google Print Ads, had failed to live up to its expectations.
“While we hoped that Print Ads would create a new revenue stream for newspapers and produce more relevant advertising for consumers, the product has not created the impact that we — or our partners — wanted,” wrote Spencer Spinnell, director of Google Print Ads, on an official corporate blog.
Google said the program, which sought to bring Google’s automated method of selling ads through auctions to the newspaper industry, would end Feb. 28.
The program began in November 2006 as a test. Google later expanded it to about 800 newspapers, including large dailies like The New York Times, The Los Angeles Times, The Chicago Tribune and The San Jose Mercury News.
But many newspapers used the program primarily for selling small amounts of ad space they could not sell themselves, newspaper publishers and industry analysts said. The ads were often sold at below-market rates.
But some publishers, especially at smaller newspapers, may feel the impact of the program’s demise. The Google Print Ads program, along with two similar efforts by Google to sell ads on television and radio, were seen as high-profile tests of the company’s ability to bring the efficiencies of its automated marketplace for online ads to large, and sometimes, inefficient advertising markets.
In radio, Google initially struggled to secure enough ad space to make the program attractive to marketers. In television, the company’s program has been looked at with suspicion, especially by cable companies that see Google as a competitor to their own efforts to sell targeted ads. The company is selling small amounts of ad space on the Dish Network, and since September, on some cable networks owned by NBC Universal, including MSNBC, CNBC and Sci-Fi.
Despite the limited size of Google Print Ads, some marketers were attracted to it, as the program often gave them the opportunity to place ads at prices lower than listed rates.
In recent weeks, Google has closed several other small products and services that have failed to gain traction as it seeks to reduce costs.
|