Magazine article Editor & Publisher

Editorial: 'Goohoo': A Raw Deal

Magazine article Editor & Publisher

Editorial: 'Goohoo': A Raw Deal

Article excerpt

More than 750 dailies in the Yahoo Newspaper Consortium have a lot riding on Yahoo's APT ad-sales and targeting system, which promises to, at long last, allow them to charge print-like prices for their digital ads.

Yet U.S. newspapers have been strangely silent about Yahoo's other deal, the agreement with Google that would actually increase the search behemoth's virtual- monopoly share of search advertising -- and position it to strangle newspaper online revenue while dictating paid search costs.

The World Association of Newspapers (WAN) is urging the U.S. Justice Department's Antitrust Division to stop this anti-competitive arrangement. And even though the ad-search deal applies to the U.S., WAN wants European Union regulators to block it preemptively. But even though it's a WAN member organization, the Newspaper Association of America rushed out a statement that it had taken no position on Google/Yahoo.

But it should. The deal presents a clear danger to newspaper online ad revenue.

Under the deal, Yahoo figures to earn about $250 million from ads provided by Google that will run alongside Yahoo's search results. Google will price the ads according to an "auction" process that it will control. It's worth noting that some of the biggest advertising agencies and industry associations simply do not believe this process, with Google setting minimum bids and other terms, will be anything like a fair and open auction. With Yahoo's share of search ads larded onto Google's already staggering 78% share, many advertisers -- which include newspapers paying for prime search positions -- have understandably concluded that the famously non-transparent Google will have its thumb firmly on the scale. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.