Yahoo Newspaper Consortium Has Generated Estimated $50 Million In Revenues


imageYahoo (NSDQ: YHOO) execs have always been more than a little circumspect when it comes to discussing how well the 800-member Yahoo Newspaper Consortium is doing. But AdAge’s Nat Ives has done some math and estimates that the alliance has sold $50 million in Yahoo ad inventory, with about “several million” dollars in sales being added each week. And although Yahoo doesn’t like to provide figures, since last fall, a number of consortium members have been singing its praises, especially since Yahoo began rolling out its APT ad distribution and targeting system for its newspaper partners earlier this year. EW Scripps (NYSE: SSP) has praised the program, saying its contributed a 30 percent gain in online ad revenues in Q1, or roughly $800,000.

And while Cox Newspapers’ Atlanta Journal Constitution wasn’t able to make much of its own internal targeting efforts over the past five years due to a lack of inventory, by adding Yahoo’s inventory to the mix, the paper was able to expand its coverage area and attract telecom and fast food marketers that typically concentrated on billboards, not newspapers. In addition to the hope APT has provided, as we noted earlier, McClatchy (NYSE: MNI) plans to work with Yahoo on offering



The dirty secret of the Yahoo deal is that Yahoo gets 60 percent of whatever the newspaper guys sell. And in the vast majority of cases, the sale is to an existing newspaper advertiser who is simply being introduced to Yahoo and moving their ad dollars from the newspaper (print or online) to Yahoo!


terribly low number after 3-4 years in development

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