Google Negotiating with Newspaper Publishers

    January 3, 2008

Google already commands the market of Internet advertising, but now the search giant’s appetite seems to be getting bigger by the day. Google’s holding negotiations with several newspaper publishers and cooking up a deal to allow its online advertisers to purchase print space in the newspapers.

This move has been a cause for anxiety for many competing media companies such as ITV, who’s chairman Michael Grade has been lobbying to reign in the big giant.

Google thinks of the dichotomy between online and offline is uncalled for. They believe differently "We believe that online and offline are part of the same melting pot, It is not an ‘either or’."

Google Print Ads is being considered as an extension of Google AdWords. Those who use Google AdWords service now don’t pay based on a price list for putting up their ads on the Internet, similarly Google’s Print Ads is supposed to allow the advertisers to bid for the price they are willing to pay for a slot in the print newspapers on a specific page and day. Of course, it’s up to the publishers to accept or reject the bids.

Google would get a share in the advertising revenue if a deal is struck. Further, Google has even offered to design ads for those advertisers who don’t have the resources to get it done on their own.

This move by Google would be considered as a welcome gesture by those print publishers who have been looking to get new advertisers for their publications. On the other hand those in the same business might perceive this move as an encroachment by the big giant on their territory. Another aspect of note is the ‘bid for ad space’ as against ‘pay according to the price list,’ this facility would even allow those who hitherto couldn’t afford an advert in the print to advertise.

Google has proved beyond doubt that it knows very well to crawl the Internet, but now it seems to be proving its metal outside it too.

The news has been brought out in a Times Online Article.