Google Inc. (NASDAQ:GOOG) wants to give the smaller, local news publisher the opportunity to play with the big boys. Over the past 20 years, technology has taken a large bite out of the printed newspaper industries, journalism careers and even classified ads, which was once a trusted source of revenue for local papers. Now, there is a turn to code-generated ad buying, in the form of real time bidding (RTB), which has also made it more difficult for regional organizations.
However, Google wants them to have as many tools as the power players do. Accordingly, Google has brokered a deal with the Local Media Consortium to give over 800 daily news outlets resources to gain traction in the RTB marketplace.
To make it work, the Local Media Consortium will run a private ad exchange network that is set up by DoubleClick Ad Exchange. They can utilize the platform for inventory management, as well as to position Google ads on their sites. In addition, Google will receive a share of the revenue from each ad sold.
This deal helps the smaller papers to have some control over where ads are placed on top of giving them a high level of efficiency at an affordable price. Richard Gingras, head of news and social products at Google, recently stated, “What we’ve seen over last several years was a rise in realization by quality brands that they want to be associated with other quality brands. The real question was how could we extend that opportunity to brands in local markets that don’t have the same wherewithal to make these kinds of sales.”
As a whole, members of the Local Media Consortium now have the fortuity to generate 10 billion ad impressions every month. Given that newspapers’ national advertising needs a boost–this partnership could not have come at a better time.
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