To be honest, the headline in today's New York Times "Newspapers to Test Plan to Sell Ads on Google" puzzled me at first blush. So, let me get this straight: Google, the world's leading online advertising company, is going to get into the declining newspaper advertising market? It seemed like a strange development at first glance, but really not so strange after taking into account the newspaper market is still worth $48-billion despite the dark cloud hanging over the industry. As a result, Google will test a plan that will see it become a middleman to help companies place newspaper ads. It should come as no surprise that the big newspaper chain, Gannett, the Tribune Co., The New York Timesy, the Washington Post and Hearst, have agreed to a three-month test given the newspaper industry is suffering from declining paid circulation and advertising as the Web gains more momentum. The question can Google be the newspaper industry's salvation? If the newspaper market is shrinking, how can it be attractive? Truth be told, Google, isn't looking to do newspapers any favours; it's simply using its brand and clout with advertisers to diversify its advertising "engine" to markets where it can generate more business - be it newspapers, magazines, radio (dMarc) or the Web. For newspapers, they clearly need any help they can get to adjust to the new media landscape. Before anyone gets too excited about Google's newspaper strategy, what ever became of its thrust into magazine advertising, which you hear nothing about these days?
By the way, despite all the hue and cry about the decline of newspapers. the New York Times' Sunday newspaper still remains an impressive beast - huge, chalk-a-block of advertising, lots of great stories.