Google moves onto Newspaper Ads

Google has started testing its new Newspaper Advertising service in over 50 daily newspaper which includes The Washington Post, The New York Times, Seattle Times, Boston Globe, Chicago Tribune and few others major dailies.

Currently a group of 100 advertisers would be able to bid on these ad space and they can chose various ad formats along with the papers in which they would like to show their advertisements. Google plans to dry run this service until Jan 2007, which means they won’t take their commission to show ads.

Newspaper publishers faced a step revenue crunch after the RSS revolution and with this new ad program, Google is trying to save a sinking ship. If this works well, it should considerably boost Google’s revenue (just like Adwords did).