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Google newspaper ads are leads, very dangerous leads

For readers of this blog, it comes as no surprise that Google sold out its newspaper ad inventory. The real surprise is how few newspaper executives fail to understand the implications of using Google’s program.

As I’ve warned, allowing advertisers to use the Google ad program inherently means giving up at least part of the important newspaper-advertiser relationship. The person or entity who owns this relationship will make the most money from the advertiser. Under this new program, the entity that establishes the relationship is Google.

That’s a huge shift in power.

At least one executive seems to get it. Todd Haskell, a New York Times vice president, told the Washington Post that his company plans to treat all ads from Google as leads.

"We think it's a wonderful way to introduce advertisers to the New York Times and print overall," Haskell said. Once the program gets going, he added, "we'd look to up-sell and migrate those [smaller advertisers] to bigger programs and better positions [in the paper] and move them out of the Google system. And we've been very upfront with Google about that."

Listening to Haskell is a good first step. Before starting the Google program, have a plan to move new advertisers into the normal channels. But don’t stop there. I stick by my original recommendations:

1) Ensure potential competitors to Google can easily enter the open-source advertising game. Don’t let Google become the only option.

2) One-up Google by offering services locally. Isolate Google to the national market.

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This page contains a single entry from the blog posted on December 28, 2006 11:29 AM.

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