The basics of Google’s project are simple: through Google, (small) advertisers can bid on print newspaper ad space that hasn’t been sold, thus injecting normally-lost revenue into papers.

This is especially helpful to attract smaller advertisers, who were previously detracted by papers’ high ad prices. It also allows papers to benefit from Google’s broad wingspan among advertisers, who can now purchase print options they hadn’t even considered.

"I think we'll have real impact next year" on newspapers' bottom lines, said Tom Phillips, director of print ads at Google. "We open the medium to a whole new class of advertisers," the Washington Post reported.

Newspaper managers and analysts have stayed somewhat cautious, unsure how much help Google’s ads will bring them. Some papers, such as the Chicago Tribune, have reported a relative increase in advertisers since they partners with Google, but other papers from Tribune Co. recorded no particular improvements.

Todd Haskell, vice president of business development at the New York Times Co., was optimistic though: "We think it's a wonderful way to introduce advertisers to the New York Times and print overall," he said.

More than a bargain for newspapers – although it may be helpful to them – the program is part of Google’s global project to revolution the advertising process in traditional media.

Google hasn’t been taking any commissions as an ad-broker yet, but with the upcoming expansion of the program it will certainly engage in negotiations with participating newspapers.

Source: Washington Post