Google Sets Sights on Old Media

After revolutionizing the internet advertising market, Google now has its eye on an altogether more traditional channel: print ads.

The internet search giant this week started the bidding in an auction for display space across a number of American magazines, including titles from Hachette Filipacchi and Future Publishing.

Google has already been running a small-scale test across a number of titles - including the Hollinger International-owned Chicago Sun-Times - but the new project will see advertisers bid against each other for display advertising across 28 different magazines.

High-profile titles including Ellegirl and Martha Stewart Living are being included in the scheme, and winning bidders can expect to see their advertisements appear later this year.

"We've been conducting a series of early phase tests to determine how we could bring additional value to print advertising. We are continuing to experiment in this area and are now testing the application of an auction model to print media," the company said.

The print venture is a widening of the company's AdWords scheme, which lets advertisers bid against each other for the right to show their spots alongside particular internet searches.

The success of the system, along with the engine's popularity with web users, has helped Google to a dominant position in the internet search market, and taken it to a current stock market valuation of $106bn (£60.67bn).

The company says its decision to try magazines and newspapers - an advertising medium that has found the going tough in recent years - came after requests from existing AdWords advertisers.

But it is not the first time Google has eyed other media. Last month the Californian firm bought its way into the radio market by shelling out $102m on media buyer dMarc Broadcasting, and already has investments in internet access and internet telephony.