Does combining Yahoo’s technology and sales team and local papers’ top-quality content equal a bulletproof online strategy? Maybe not, but $50 million in revenue ain’t too shabby either.
The Yahoo Newspaper Consortium is a group of 500 newspapers that use Yahoo’s ad platform, allowing the newspapers to offer larger targeted spots to advertisers. For example, the Atlanta Journal-Constitution had been selling targeted ads, but the slices it offered were “too small even for local advertisers,” according to Ad Age. With the Consortium, Yahoo’s sales reps can sell newspaper inventory and newspaper sales reps can sell ads on Yahoo’s site, expanding the reach of both organizations. Scripps attributes a 30 percent growth ($800,000) in online ad revenues last quarter to the Yahoo platform.
SeattlePI.com is using the service, as is the Houston Chronicle. Ad Age reports that the papers are able to charge as much as a 15% premium for targeted ads.
These numbers are still a fraction of what newsrooms, in their current forms, need to stay afloat, but it’s certainly promising news.