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Re-thinking competition: teaming up with Google

World News Publishing Focus

World News Publishing Focus
Your Guide to the Changing Media Landscape

Re-thinking competition: teaming up with Google

It is a valuable relationship that makes sense as the local morning papers find themselves slowly losing a market share both on print and on the internet. Search is growing most online and morning papers have never been in that business. Additionally, adwords are not competing with the other media products. Choosing to cooperate with the strongest player in the field allows for a quick start with a promise of a sizeable income.

Having Google as a partner also works well, claims Åke Hökby who works with business development at Eskilstuna-Kuriren. They are the biggest player in search with as much as 85% market share in Sweden. It is a high quality brand and they have an existing working product. Google are interested in making business and need quality partners and local news has an advantage as they already have an established relationship with the customers.

Hökby is not certain that this is a strategy that will work in the long term. However, it is a tactic that has to be tried out. Having been in operation only 4 weeks, the initial results are good. They have 10 customers who that has tried it, worth about 250,000 SEK calculated over 12 months. The income for 2012 is expected to be 4 million SEK which is about half of the income they usually see from regular banners.

They will keep trying with new advertising models and Hökby suggest that in the near future, they will look to expand and partner up with Bing, and as a second runner up: Facebook.

Author

Annica Widlert's picture

Annica Widlert

Date

2012-05-31 14:46

Author information


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