• by Shankar Gupta , November 11, 2005

Google is considering selling print ads in two Chicago newspapers, a company spokesman confirmed Thursday. The initiative, described by the spokesman as "a potential print ads test" would allow advertisers to purchase ad space in the papers through Google's AdWords system.

The beta service, called Google Publication Ads, is by invitation only, even to users with AdWords logins. It allows users to select a publication or list of publications by demographics, circulation details, or keywords; design an ad that incorporates text and images; and submit the ad online. The ad will then be forwarded to the publisher for approval, and when the ad runs, the user receives a proof of publication and a bill.

Kelsey Group analyst Greg Sterling said newspapers may view Google's attempt to become a middleman as a mixed blessing. "Newspapers would greet that with a mix of enthusiasm and maybe some concern," he said. "I think that many of them feel a bit dependent on the revenue stream that AdSense presents, but they worry about Google as a competitor. But they would be delivering revenue, and certainly newspapers would be excited about additional advertisers."

The likely target for such ad space, Sterling said, would not necessarily be small business advertisers, who probably already have relationships with their local newspapers, but local advertisers of any size looking to consolidate their buy. "What's the reason to use an agency or an intermediary like Google? Because you want to consolidate your ad buy," he said. "Otherwise, why wouldn't you go directly to the publication?"

Although this initiative is the company's first foray into newspaper territory, Google has placed print ads in the past, in computer magazines PC Magazine and Maximum PC. "Generally speaking, advertisers and publishers have reacted favorably to our initial test, and we are exploring various ways to continue experimenting with ads in print media," the Google spokesperson said.

Google also placed a group of ads in the November issue of Budget Living magazine. The search giant apparently resold two full pages of ads--one page dedicated to seven different products and services, including an office chair and an anti-spyware software package, and another ad dedicated entirely to Freeze.com, which offers free screensavers.