Google will test selling ads for newspapers across U.S.

Published: Tuesday, Nov. 7 2006 12:00 a.m. MST

Google Inc., owner of the most-used Internet search engine, will test selling advertising for 50 newspapers starting this week, part of the company's latest effort to extend its reach beyond the Web.

Google will take bids for advertising space in newspapers owned by New York Times Co., Washington Post Co., Gannett Co., Tribune Co. and McClatchy Co., Mike Mayzel, a spokesman for Google, said in an e-mail.

Advertisers' offers for available space will be relayed to publishers, who will accept or reject them. The trial is an effort by Google CEO Eric Schmidt to tap off-line ad markets such as print and radio and comes as newspapers face declining sales and readership.

"For Google, the goal is to tap all forms of advertising and create a platform that allows advertisers to look at all their media," said Steve Weinstein, an analyst at Pacific Crest Securities in Portland, Ore. He rates Google shares "outperform" and doesn't own them.Google, based in Mountain View, Calif., will start offering newspaper space to about 100 of its advertisers this week in a test that will last for three months. Companies that may bid on ad space include DVD rental company Netflix Inc., health insurer EHealth Inc. and car rental company Avis Budget Group Inc.

Shares of Google, up 15 percent this year, rose $5.15 to $476.95 at 4 p.m. New York time in Nasdaq Stock Market composite trading.

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