Yahoo! newspaper consortium brings in USD50m

Yahoo!’s newspaper consortium has sold ads worth an estimated USD50m to date, indicating that the scheme is now a crucial aid to newspapers, which are struggling to offset their print losses with online ad gains. The consortium is reportedly responsible for the 30% gain in online ad sales posted by Scripps Newspapers in Q1, a gain of USD800,000.

Participating newspapers pool their online ad inventory with Yahoo!, meaning they are able to offer more appealing deals to advertisers and sell more space. In exchange, Yahoo! gets to syndicate newspapers’ content and sell national ads on some newspaper sites. As well as the ad sales benefits, Yahoo! says the scheme drives traffic to newspaper sites by giving them exposure on Yahoo! pages.

The USD50m Ad Age estimate claims that the scheme is especially useful for helping newspapers sell targeted ads. The Atlanta Journal Constitution reportedly tripled its inventory when it joined the scheme, allowing it to secure a number of lucrative targeted ad deals, which are worth more than traditional display ad contracts.

Of the consortium’s 800 members, roughly 150 are signed up to Yahoo!’s new display ad platform APT. This launched in September and is designed to simplify the ad sales process. A further 350 participating newspapers are said to be ready to start using the system in the near future.

As well as the ad sales benefits, participating newspapers get to incorporate Yahoo! HotJobs and Yahoo! Search on their websites. Though the recession has hurt recruitment ad sales, HotJobs remains a valuable benefit for newspapers and is said to have motivated many participating newspapers to join the scheme. However, Yahoo! is rumoured to be considering selling HotJobs, as part of new CEO Carol Bartz’s cost-cutting and streamlining efforts. The news may worry newspapers, especially as it comes after the departure of Yahoo! president Sue Decker, a key force behind the consortium.