Google is giving back, or at least sharing the wealth with all those newspapers it's been stealing business from over the past few years.
It’s testing a new program that lets its hundreds of thousands of customers advertising on its website, like Netflix and eHealth, also buy ads in publications from the New York Times to the San Jose Mercury News.
Jim Friedland from Cowen & Co., a large investment baking firm, says, “It remains to be seen how big this can be, but the newspaper industry at this point will go wherever it can to get revenue, even if it is against their number one competitor."
Google will act as a kind of middle-man, helping its customers not only bid on keywords for their net advertising, but also letting them bid on open newspaper space, taking a small commission for every print ad it sells.
Although newspaper advertising has been plunging in recent years, as a whole, Google's advertising revenue has been exploding; print ads are still a $49-billion dollar market.
By offering print ads as well, Google may attract a number of advertisers who might not have otherwise considered an online strategy.
Mark Mahaney from Citigroup says, "Advertisers are looking for a way to market their messages, not just on the Internet, but obviously everywhere, and this will be one of the first times that Google gives them the opportunity to do that."
Plus, come up with a new way to make money where it didn't exist before.