Business | Technology
Google will no longer sell print advertising
Google, owner of the world's most popular Internet search engine, will close a business that sells advertising space in newspapers, saying the effort failed to deliver the impact it wanted.
- By Brian Womack, Bloomberg
- Published: 00:30 January 24, 2009
San Francisco: Google, owner of the world's most popular Internet search engine, will close a business that sells advertising space in newspapers, saying the effort failed to deliver the impact it wanted.
The programme, which had attracted more than 800 US newspapers since it began in 2006, will stop selling ads on February 28, Google said on Tuesday on its blog. The ad sales will continue until March 31 for customers who already had campaigns booked.
"Some advertisers have seen good results," Spencer Spinnell, director of Google Print Ads, wrote on the company blog. "But as we grow, it is important that we focus on products that can benefit the most people and solve the most important problems."
Google, which gets most of its sales from Internet-search advertising, has sought to expand beyond the web by selling print and television ads. The recession has curbed overall marketing spending, forcing the company to slow expansion plans. Google announced last week that it's cutting about 100 jobs from its recruiting department as it scales back hiring.
Google dropped $16.92 (Dh62.15), or 5.7 per cent, to $282.75 at 4pm New York time in Nasdaq Stock Market trading on Thursday. The shares tumbled 56 per cent last year. The company will report its fourth-quarter results on January 22.
Newspapers face crumbling demand for print ads as advertisers shift dollars to the Internet. The Minneapolis Star Tribune filed for bankruptcy last week, joining Tribune Co, which sought protection from creditors on December 8.
Google's print ad customers included many of the biggest US newspaper publishers, such as New York Times Co, Washington Post Co, Gannett Co and Tribune Co. The programme took bids from advertisers for newspaper space, with Google getting a cut of the sale. The company's goal was to make print ad prices more fluid, letting publishers charge rates that better reflect demand.
Google said Tuesday it will continue to devote a team to newspaper companies, seeking ways to help them make money online.
The company has been pulling back on services that aren't performing. It also announced plans last week to end development of Google Notebook, which lets users post content from various sources to one site.
Share this article
More from Technology
More from Business
Popular in Business
-
XPRESS
Way to go this DSF
A fun-filled route to guide you to all the happening dos in town
Business Editor's choice
-
Travel insurance offers peace of holiday mind
The wisest thing to do is to take out travel insurance before you leave.
-
Controlling risk through managed account
Can be simple stand-alone master funds or can grow to include several special purpose vehicles
-
Regional banking in throes of light and darkness
Loan-loss provision growing but lenders withstanding crisis
