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More papers join Yahoo online advertising scheme
Five more US newspaper publishers have joined forces with Yahoo, the latest deal in the fast-changing world of internet advertising.One of the new names is McClatchy Co, which is the third-largest newspaper publisher in the States based on circulation, AP reports. The alliance was announced five months ago and now incorporates 264 newspapers.
The deal involves internet users being able to place ads in national papers, bringing benefits to the publishers, the advertisers and Yahoo itself. Google is engaged in similar tie-ups as the battleground for internet advertising dollars extends beyond the web proper.
Changes announced include the focus on all kinds of online advertising, rather than just help-wanted ads, as was the case before.
"McClatchy looked a various options and concluded this is the industry play," said the firm's co-chairman, Gary Pruitt.
"This is where the momentum is. Our message to other newspaper players is, 'Come on board.'"
The deal will also see newspapers placing more of their stories on Yahoo news, in the hope that users will be directed to their own websites.
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paid the vast sum to acquire DoubleClick as it looked to get a hold on display advertising and challenge the likes of Yahoo in this marketplace.
However, a source told the Times that Microsoft had also been prepared to pay more than $3 billion for DoubleClick, the largest independent broker of online display ads.
This was despite the fact that Microsoft spokesman Don Dodge had previously said that a much smaller sum of $2 billion would be far too much for the firm.
However, the deal will greatly expand Google's already massive influence in online advertising. It is already the largest player in terms of search ads, where links to company websites are provided with a snippet of text next to relevant content.
Display ads are those that contain more pictures and logos, with a clickable link to the relevant site.
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DoubleClick.
However, its rivals are not likely to let up, and Microsoft last month managed a larger increase in internet traffic than Google - increasing from 10.5 per cent to 10.9 per cent. Yahoo dropped slightly, from 28.1 per cent to 27.5 per cent, although it is still very much Google's number one rival in this area.
Ask was in fourth position, increasing its share from 5 per cent to 5.2 per cent. Time Warner was in fifth, growing its own share from 4.9 per cent to 5 per cent.
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purchasing DoubleClick Google stole a march on rival Microsoft (also believed to have bid $3.1 billion) and gained an enormous market share of the display ad market, traditionally dominated by Yahoo.
"Google's acquisition of DoubleClick provides a rare glimpse into Google's imperial ambitions, which is to leverage its dominance in search to dominate the overall internet advertising marketplace," said Mr Cleland.
He believes that the DoubleClick deal "skilfully exploits antitrust law's weak underbelly, so it is unlikely to be blocked by the government".
Google's argument is that Double Click help to create a monopoly of the search engine market as it deals with a different kind of online advertising.
Meanwhile Yahoo posted a surprising 11 per cent drop in first quarter profits. Analysts are speculating that its new advertising system, Panama, has yet to truly take hold. Second quarter net revenue was forecast at between $1.2 billion and $1.3 billion.
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DoubleClick has prompted some to accuse it of monopolisation.
"With this sort of conflict of interest coming to light, it opens the door to people who didn't want to make a switch who [might possibly think] maybe they should," Valenti continued.
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Now Google's Patrick Walker has revealed that the company is working with content providers to produce 30-second advertisements that will run before content is viewed on YouTube, VNUnet reports.
The revenue produced would then be shared between YouTube and the broadcaster. This will see "real money coming in" from video advertising, he said.
It is unclear how YouTube's users will react to adverts before the clips, but the announcement signifies the immense popularity of internet advertising and comes soon after Google's acquisition of online advertising firm
