Google and Newspapers

By: Carl Sullivan It's hard to believe that Google's popular AdSense program only launched one year ago -- so ubiquitous are the contextual ad links on Web sites. Often labeled "sponsored links," the paid text advertisements are served up automatically to run adjacent to relevant content. (You'll even see them at the bottom of E&P's Web pages.)

It's become big business for Google and competitors such as Yahoo! Inc.'s Overture. Mountain View, Calif.-based Google won't reveal how profitable the program is, but says thousands of publishers from around the world, including newspapers, magazines and other online content providers are participating in AdSense. Smaller publishers receive a set revenue split while larger publishers negotiate terms with Google on an individual basis. "We do not disclose the specific revenue share, but we are being generous with the amount we give publishers and we have heard from our publishers that the amount they earn with AdSense is often more than what they can make with alternative forms of advertising," says Google co-founder Sergey Brin. A native of Moscow, Brin, 30, is president of technology for the company -- sharing responsibility for day-to-day operations with Larry Page and Eric Schmidt.

We recently interviewed Brin via e-mail about Google's plans for the future and its partnerships with the newspaper industry.

1. Contextual advertising became very popular in 2003. What's the next evolution, and how will Google stay ahead of competitors in this space in 2004?

Brin: Google launched AdSense for large publishers in March 2003. In June, we launched AdSense for publishers who want to set up and manage their own account online. Since that time, thousands of publishers have enrolled. The popularity is a testament to its effectiveness in monetizing Web content. By providing Web-site publishers with a simple and efficient monetization solution, AdSense is helping to drive the creation of high quality content on the Web. Bringing relevant, unobtrusive ads to Web pages and additional revenue to publishers helps improve the overall Web experience.

We've stayed ahead of competitors by improving the product on a daily basis. AdSense is the only scalable contextual advertising solution that can target ads dynamically as content changes. We plan to offer even more tools and user-interface options to publishers around the world and continue to develop innovative technologies that benefit advertisers, publishers and Web users.

2. Many newspapers are publishing display ads on the Web, with photos and graphics. Will AdSense evolve beyond text-based advertising? Or is text the best medium for these types of ads?

SB: At this point, text ads are the best solution for our users, advertisers and partners. However, online advertising, especially contextual advertising, is evolving rapidly. Google is committed to a leadership position in online advertising technology and we continue to explore new technologies in every aspect of targeting, delivery and display.

3. Newspaper publishers are very concerned about their classified advertising business. Does Google have any plans in this space? How does AdSense fit into employment, real estate and cars classifieds?

SB: Currently, we have no plans to offer these services. Many of our publishers already have existing contracts with advertisers and have found AdSense to be a benefit to their business. The program requires little or no maintenance so publishers can focus on building stronger relationships with their roster of existing clients -- while enjoying additional revenue from AdSense. The publisher's direct sales team can then focus on the most profitable accounts.

For newspapers with classifieds ads, it's a similar concept. They can choose to use AdSense where it complements and enhances their business.

4. What editorial control do publishers have over filtering ads (i.e. decisions about only wanting certain types of ads to display on obituary pages, or preventing the luggage ad from showing up next to a story about a murder victim stuffed into a suitcase)?

SB: This is an issue that we take very seriously, which is why ads do not run on a publisher's site until they have been reviewed and approved by the professionals of our editorial team. Each ad is then classified as family-safe, non-family-safe or adult. Of these, only family-safe ads are distributed through our content and search network. We also employ a team of linguists to help us develop and maintain a series of technologically advanced automatic filters designed to prevent ads from appearing at an inappropriate time.

For example, Google would block certain ads from running on a Web page featuring catastrophic news. We also work with each publisher to address their specific concerns and can place manual blocks on other ads like those from competitors. Any ad that publishers do find on their site that they deem inappropriate can be taken down very quickly.

5. To change the subject, I'd like to get your perspective as an outsider of the newspaper industry. What do you think newspapers do well online? What are their strengths and weaknesses?

SB: Online versions of newspapers are great at covering and disseminating breaking news. They also do a really good job on local news and giving national or international news a local angle, as well as providing local classified listings. Also, online newspapers are the best way to stay informed about a place of interest not near you, like somewhere you used to live.

I think it is challenging for online newspapers to attract a broad audience to their site, unless they are a very large paper. Also, with such a variety of content that changes so often, it is difficult for newspapers to maximize the revenue potential of their site. It's this second area where AdSense has benefited many newspaper sites by providing access to Google's more than 150,000 advertisers and showing ads targeted to the changing content on their site.