The Google foray into print advertising that caused much worry among print media organisations (see previous postings here and here) has not been as big a success as some might have expected, says Business Week.

GOOGLE STRATEGY
Google launched its trial program Google Publication Ads in the following way: pages worth of ad space were bought from niche publications such as PC Magazine and then the space was divided up into smaller sections and sold off.

Two principles were behind this strategy. Firstly, Google already had a ready network of advertisers from its online ads. Secondly, many advertisers cannot afford large expensive ads in magazines, therefore selling smaller less expensive ads could be a success.

Google has asserted that the initiative is taking off and that hundereds of advertisers have inquired about it. However, Business Week suggests that a closer examination of the reactions of advertisers that have already taken part tells a different story.

SUCCESS?
Business Week interviewed 10 advertisers and two publishers that bought print ads from Google. Eight out of the ten advertisers "were unhappy enough with the results that they say they're unlikely to do further print advertising with Google." One of the ten said that the ad generated enough revenue to pay for itself.

PROBLEMS
According to Business Week one of the major problems with print ads for Google is that for the small advertisers that they target their online ads are more profitable.

To illustrate this point Business Week uses the example of online business TrimYourDebt.com which purchased a Google print ad and has also used Google online advertising. The company said it hadn't had enough profitable responses to its print ad, wheras what had been successful was the online advertising campaign that led internet users to its website. Jennifer Blackhurst, co-founder of TrimYourDebt said the following: "The whole power of the Web is to bring targeted visitors to your site ... The print ad hasn't done this, so it didn't justify the cost."

Additionally, the pricing of print ads cannot be reduced in the same way as online ads.

CONCLUSION
Despite teething problems, Google has said it remains committed to print advertising. Advertising sales chief Armstrong said "We view this as a long-term R&D project ... We're not as concerned with profitability right now as we are with finding value for publishers, advertisers, and customers."

Business Week concludes that "Google certainly has the cash and patience to sustain a lengthy effort to penetrate the magazine advertising arena. But based on this assessment of Google's initial foray, don't expect it to replicate its online successes anytime soon."

Source: Business Week Online