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July 18, 2007
Google May Rescue Newspapers After All

Google, which has been deemed public enemy No. 1 by many in the newspaper business, may offer slumping print media a glimmer of hope. The search giant has said it will expand a year-old program that pairs online advertisers with newspapers, according to an Associated Press report.

Google, which launched the test of Print Ads in November, has expanded the program to include 225 newspapers around the U.S.

The program allows companies to bid on print space through an automated Google billing system. Print publications can choose to accept or reject the bid.

So far, the program has returned some encouraging results, according to Gannett Co. spokeswoman Tara Connell.

"We did see some new advertisers come in through the original test," Connell said. "Now we really need to see whether there really, really are advertisers (who are) going to jump in here and bring us new business."

In the meantime, a report in today's Wall Street Journal says the downturn facing newspapers is rapidly getting worse.

Publishers have reported sharp declines in print revenue, the article said, with more bad news expected in the coming days as Gannett Co., McClatchy and Dow Jones release their numbers.

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