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Leaders of Yahoo! Inc. and Google said Tuesday that they are working on new ways to help struggling newspapers improve their online ad revenue.
Speaking at a conference on the future of newspapers in the Internet age, Lem Lloyd, the vice president of channel sales for Yahoo, and Josh Cohen, a senior business product manager for Google News, both said they hoped technology would help bring more funds to news producers.
Lloyd said that Yahoo is working to shift its internet advertising, which other sites can employ, to a model based on behavioral targeting, aiming to put ads in front of the internet users most likely to want to see them and make a purchase.
"Instead of selling sections, instead of saying 'I will put your ad on the sports section of the Web site or the few dozen page views that I may have in travel or finance, I will actually sell you an audience," he said. "And the good news is, the rates on behavioral targeting are very good."
He added, "In each category we build models to describe behavior most likely to convert to an ad response, we score each Yahoo user daily . and the idea is that you could deliver the right type of ad to the right kind of person at the right kind of time."
Lloyd also said that the local ad sales forces of daily newspapers, when joined with the opportunities to sell the viewers of a consortium of papers from different locations, also could prove a valuable asset.
However, he warned, many existing personnel would need to be retrained before they could be a true asset to a newspaper web site.
"Like a muscle, America's newspapers' sales forces have been left to atrophy," he said. "We believe that if given the proper tools and training, America's newspapers can compete and prosper in the Internet age."
Cohen said that Google's strategy was to assist newspaper Web sites first by driving more traffic, and potential ad users, to them, as well as by seeking to make sure that the ads are relevant to the articles being read.
"Ads can be smarter and more targeted," he said, adding that it "needs to be easier to buy ads online."
However, he cautioned that there likely is no single silver bullet approach to restoring newspapers to profitability over the internet.
"There really isn't one single area or one single solution to it," he said. "There needs to be innovation across all these different buckets."
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