Wednesday, March 10, 2010

Googland

Googland

[G] The Internet in America: A YouTube Interview with the FCC

Posted: 10 Mar 2010 05:33 AM PST

YouTube Blog: The Internet in America: A YouTube Interview with the FCC

If you're reading this, then you're probably on the Internet -- via your laptop, your mobile phone or other handheld device, or maybe even through your television. But in 2010, millions of Americans still do not have access to the wealth of information made available on the Web. Even though the Internet was invented in the U.S. over 20 years ago, many Americans lag behind in both access to the Internet and speed of connections, which is why the Federal Communications Commission (or the FCC, the federal agency that oversees the U.S. communications industry) is launching its much-anticipated National Broadband Plan next Tuesday, to lay out its strategy for connecting all Americans to fast, affordable high-speed Internet.

After this plan is announced, you have the opportunity to interview FCC Chairman Julius Genachowski, in the second of a series of in-person YouTube interviews with government leaders. (Our first, with United States President Barack Obama, took place last month.) Go to CitizenTube today to submit your video or text question via Google Moderator, and vote on your favorites; we'll bring a selection of the top-voted questions to Chairman Genachowski in our interview next Tuesday, March 16. The deadline for submission is Sunday night March 14 at 11:59 p.m. PT.

To help structure our conversation with the Chairman, we've broken the interview down into seven topics. To learn more about what the FCC is doing in each area, click on the links next to each topic below. Then submit your question on CitizenTube under one of the topic headings.
Access to the Internet has transformed almost every aspect of our economy and society. This is your chance to press the FCC on how the National Broadband Plan will help bring the Internet to everyone. We're looking forward to seeing your questions and hearing what the Chairman has to say.

Steve Grove, Head of News and Politics, recently watched "The Internet in 1969".


URL: http://feedproxy.google.com/~r/youtube/PKJx/~3/FJdZb6Oied8/internet-in-america-youtube-interview.html

[G] It's time to bike

Posted: 10 Mar 2010 05:33 AM PST

Google LatLong: It's time to bike


Over on the Official Google Blog, you can read a very, very exciting announcement: Google Maps now offers biking directions! As my teammate Shannon mentions in that post, we've been constantly asked when this feature will be made available. But as an engineer working on the directions team, I'd often get questions about why Google Maps didn't already have biking directions. After all, we've had driving, walking, and public transit directions for some time, so what is it about biking directions in particular that presents an engineering challenge?

Well now that the good news is out, I can lift the curtain and explain the many factors and variables that we've had to take into account to put this whole feature together:
  • Bike trails: Our maps contain over twelve thousand of miles of biking trails. First, we had to figure out where trails are, so we worked with the Rails-to-Trails Conservancy to get much of our trail data. Once we had trails mapped out, the next task was to incorporate them into our routing algorithm. The algorithm is weighted to strongly prefer routing on these trails rather than roads open to automobile traffic, so your directions will try to put you onto a trail as long as it won't take you totally out of your way. On our bicycling layer (found under the 'More' button), these trails show up in dark green.
  • Bike lanes: For more than 150 cities in the US, we know which streets have dedicated bicycle lanes. These are also prioritized when coming up with a routing suggestion. On the bicycling layer, you'll see these roads indicated in bright green.
  • Recommended routes: For many cities we also information on streets that have been designated as good for cyclists, so we them into account in our algorithm. These roads are indicated with dashed green lines on our bicycling layer.
  • Uphill slopes: l don't know anyone who enjoys biking up a hill, especially when you're trying to get somewhere you need to be. Going uphill is worse than simply being much slower; it's also exhausting and can take a toll on the rest of your ride. Our biking directions are based on a physical model of the amount of power your body has to exert given the slope of the road you're biking on. Assuming typical values for mass and for wind resistance, we compute the effort you'll require and the speed you'll achieve while going uphill. We take this speed into account when determining the time estimate for your journey, and we also try hard to avoid routes that will require an unreasonable degree of exertion. Sometimes the model will determine that it's far more efficient to make you ride several extra blocks than to have to deal with a massive hill. My teammates in San Francisco were relieved to see that this does indeed work!
  • Downhill slopes: Many cyclists will tell you that going downhill is annoying for a different reason: you may have to ride your brakes all the way down. All else equal, we try to avoid routes that require a lot of braking. Of course, in some cities, including my hometown of Seattle, this isn't always possible! And if you feel like you need a big workout and want to climb some hills, or if you just love that wind-in-your-hair feeling of a long downhill (you better be wearing a helmet and staying safe!), you can always turn on the terrain layer to check out the hilliness of an area for yourself.
  • Busy roads: Cyclists often tend to prefer to stay off of fast roads, and not even cross them unless it's necessary. This is roughly the inverse of driving directions, where you want to stay on arterials and freeways, so we had to rework a lot of those fundamental calculations when coming up with our biking directions algorithm.
  • Busy intersections: We try to avoid making you cross busy streets with a lot of car traffic and long wait times.
Even having figured out how to account for all these variables and cost-estimates in our algorithm, the biking direction feature would not have been possible without our new base map data which allowed us the flexibility to easily incorporate bike trail data, a fundamental part of this feature. It also allowed us to readily incorporate feedback directly from our users, and we welcome all your feedback and suggestions via the "Report a problem" tool -- after all, biking directions are still in beta and we're continuing to work on adding more data about bike trails, bike lanes, and preferred roads. Both of these updates were made in October, at which time we promised that that biking directions were in the works, and now five months later: here they are!


Posted by John Leen, Software Engineer, Google Seattle
URL: http://google-latlong.blogspot.com/2010/03/its-time-to-bike.html

[G] A digital renaissance: partnering with the Italian Ministry of Cultural Heritage

Posted: 10 Mar 2010 05:33 AM PST

Official Google Blog: A digital renaissance: partnering with the Italian Ministry of Cultural Heritage

The Renaissance, Europe's period of cultural, political and scientific rebirth, began in Florence around 600 years ago. At Google we're interested in a (small "r") renaissance of a different kind — a digital one. Since the launch of Google Books, we've been working with libraries and publishers around the globe to bring more of the world's books to more readers around the globe. Any school child should be able to access the works of Petrarch, Dante or Vico (or, if they're so inclined, Machiavelli). In the case of these more famous authors, this is already largely possible, but what about the work of Guglielmo il Giuggiola or Coluccio Salutati? We want all of the great literature and writings of Italy to be accessible to the general public.

Today we're announcing an agreement with the Italian Ministry of Cultural Heritage that will push this vision forward. Working with the National Libraries of Florence and Rome, we'll digitize up to a million out-of-copyright works. The libraries will select the works to be digitized from their collections, which include a wealth of rare historical books, including scientific works, literature from the period of the founding of Italy and the works of Italy's most famous poets and writers. It marks the first time we've ever joined forces with Italian libraries, and the first time we've worked with a ministry of culture.

Around Europe and the rest of the world, we are effectively witnessing a digital renaissance, with an increasing number of organizations running ambitious and promising book digitization projects. We're not the only ones who have seen the need to bring the world's books into digital form. Digitization of books is a tremendous undertaking, requiring the joint effort of a great number of public and private stakeholders. For this reason, we're supportive of many other efforts at digitization, such as the European Commission's Europeana. We want to see these books have the broadest reach possible — the books we scan are available for inclusion in Europeana, of which the Florence Library is a founding member, and other digital libraries. The more of the world's historical, cultural treasures we can bring online, the more we can unlock our shared heritage.

We believe today's announcement is an important step, and we look forward to working with more libraries and other partners. We envision a future in which people will be able to search and access the world's books anywhere, anytime. After all, Antonio Beccadelli and Anastasius Germonius — like Shakespeare and Cervantes — are part of our human cultural history.

Posted by Gino Mattiuzzo, Strategic Partner Development Manager, Italy
URL: http://googleblog.blogspot.com/2010/03/digital-renaissance-partnering-with.html

[G] More great apps for Google Apps

Posted: 09 Mar 2010 08:32 PM PST

Official Google Enterprise Blog: More great apps for Google Apps

This evening, we were joined by more than 50 participating companies to announce the launch of the Google Apps Marketplace, a new online storefront that enables millions of Google Apps administrators to discover and purchase integrated third party cloud applications and deploy them to their domains.

Adding an application from the Marketplace to your domain is simple - it only takes four clicks. Applications can then be easily managed from your domain's control panel and accessed by users through the same links as the Google Apps suite.

1) Click "Add it now"
2) Agree to the vendor's Terms of Service
3) Grant access to the data that the app is requesting (ome apps require data access, some don't...so only grant access to apps you trust)
4) Turn it on and start enjoying your increased productivity

Applications listed in the Google Apps Marketplace integrate with Google Apps using open protocols. These integrations improve the efficiency of your businesses by allowing users to share data and collaborate on projects as well as connect to users' daily workflows in apps like Gmail, Google Calendar and Google Contacts.



This integrated app experience is available in the Marketplace today for users of Google Apps Premier, Standard and Education Editions thanks to the efforts of folks like Intuit and Atlassian, and others who are committed to join, including NetSuite and Successfactors. We are honored to work with the more than 50 partners listed below:


The Google Apps Marketplace gives software vendors access to a rapidly growing Google Apps customer base of 25 million users from 2 million businesses and universities. By embracing open standards like OpenID and OAuth, and by giving software vendors freedom of choice for both billing arrangement and hosting platform, Google makes it easy to build apps for the Google Apps Marketplace.

For a lot more detail on what this means for developers and ISVs, check out our posts on the new Google Apps Developer Blog and the Google Code Blog.

We look forward to seeing the ways in which companies leverage the applications currently in the Google Apps Marketplace in addition to the apps to come in the future. In fact, we'll be exploring these topics further at Google I/O on May 19-20 in San Francisco. We hope you'll join us!

Posted by Scott McMullan, Google Apps Partner Lead, Google Enterprise team
URL: http://googleenterprise.blogspot.com/2010/03/more-great-apps-for-google-apps.html

[G] Open for business: the Google Apps Marketplace

Posted: 09 Mar 2010 08:32 PM PST

Official Google Blog: Open for business: the Google Apps Marketplace

Every day, thousands of businesses choose the cloud. More than 2 million businesses have adopted Google Apps over the last three years, eliminating the hassles associated with purchasing, installing and maintaining hardware and software themselves.

We've found that when businesses begin to experience the benefits of cloud computing, they want more. We're often asked when we'll offer a wider variety of business applications — from accounting and project management to travel planning and human resources management. But we certainly can't and won't do it all, and there are hundreds of business applications for which we have no particular expertise.

In recent years, many talented software providers have embraced the cloud and delivered a diverse set of features capable of powering almost any business. But too often, customers who adopt applications from multiple vendors end up with a fractured experience, where each particular application exists in its own silo. Users are often forced to create and remember multiple passwords, cut and paste data between applications, and jump between multiple interfaces just to complete a simple task.

Today, we're making it easier for these users and software providers to do business in the cloud with a new online store for integrated business applications. The Google Apps Marketplace allows Google Apps customers to easily discover, deploy and manage cloud applications that integrate with Google Apps. More than 50 companies are now selling applications across a range of businesses, including:
  • Intuit Online Payroll: A small business application that offers business owners a new way to efficiently run payroll, pay taxes and let employees check paystubs all within one integrated online office environment.
  • Manymoon: The company's free work and project management application for Google Apps makes it simple for businesses and teams to organize and share information including tasks, projects, documents, status updates and links with co-workers, customers and partners.
  • Professional Services Connect (PS Connect): This new cloud-based offering coming soon from Appirio, pulls contextually relevant information on people, projects, customers and transactions from a user's domain and surfaces it directly inside a Gmail message so services professionals can make more informed, real-time decisions.
  • JIRA Studio: A hosted software development suite from Atlassian enables software developers to flow naturally between Gmail, Google Calendar, Google Docs and other design and development tools in order to better track and manage project issues and workflow.
Once installed to a company's domain, these third-party applications work like native Google applications. With administrator approval, they may interact with calendar, email, document and/or contact data to increase productivity. Administrators can manage the applications from the familiar Google Apps control panel, and employees can open them from within Google Apps. With OpenID integration, Google Apps users can access the other applications without signing in separately to each. The Google Apps Marketplace eliminates the worry about software updates, keeping track of different passwords and manual syncing and sharing of data, thereby increasing business productivity and lessening frustrations for users and IT administrators alike. That's the power of the cloud.



For more information on the benefits of the Google Apps Marketplace to businesses, check out our Enterprise Blog post. Developers interested in learning how to integrate with Google Apps can check out our post on the Google Code Blog. Or, you can explore the Google Apps Marketplace directly at http://google.com/appsmarketplace.

Finally, we'll be diving deeper into application development for the enterprise at Google I/O on May 19-20. We hope to see you there!

Posted by Chris Vander Mey, Product Manager, Google Apps Marketplace
URL: http://googleblog.blogspot.com/2010/03/open-for-business-google-apps.html

[G] Heads up.....

Posted: 09 Mar 2010 01:46 PM PST

Official Google Enterprise Blog: Heads up.....

The Google Developer team will be live streaming an important announcement about Google Apps this evening. Tune in on the Google Developers YouTube channel tonight at 6:00 p.m. PST to watch. Enjoy the show!

Posted by Chris Kelly, Google Apps Developer Marketing team
URL: http://googleenterprise.blogspot.com/2010/03/heads-up.html

[G] Earn more with AdSense tips by email

Posted: 09 Mar 2010 12:34 PM PST

Inside AdSense: Earn more with AdSense tips by email

A few months ago, we updated the email communication options in your AdSense account to give you more choices about the types of messages you'd like to receive from us. You can now pick the types of messages that interest you from five categories:
  • Customized help and performance suggestions
  • Newsletters
  • Google market research
  • Special offers
  • Information about other Google products and services which may be of interest to you
If you'd like to receive emails with optimization tips that are targeted to your specific account settings and ad implementation, you'll need to choose the category Customized help and performance suggestions. You'll receive roughly one email per month from us with targeted performance suggestions, so you don't have to worry about your inbox overflowing with messages from us.


In case you aren't currently opted into this category, we'd like to recommend that you update your preferences to be able to receive Customized help and performance suggestions going forward and not miss out on valuable information on how to optimize your AdSense performance.

Posted by Annette Vorstoffel - AdSense Optimisation team
URL: http://adsense.blogspot.com/2010/03/earn-more-with-adsense-tips-by-email.html

[G] Project: Report Round 2 Begins, Semi-Finalists Announced

Posted: 09 Mar 2010 11:20 AM PST

YouTube Blog: Project: Report Round 2 Begins, Semi-Finalists Announced

All of the entries for Round 1 of Project: Report are in, and a panel of judges from the Pulitzer Center have chosen the top 10 semi-finalists. We saw terrific submissions from around the country, each telling a powerful story of an individual through a day in his or her life. Now you can vote for which Round 1 submission you think should win the Community Award.

Below is a list (in no particular order) of the 10 Round 1 winners who will proceed to the second and final round of Project:Report. The grand prize? One of five $10,000 travel fellowships to work with the Pulitzer Center on an international reporting project.

Each of these 10 semi-finalists also received a Sony VAIO notebook with the new 2010 Intel Core i7 processor and a Sony HD video camera, which they will use these to produce their videos for Round 2.

But don't worry, even if you're not one of the 10 semi-finalists there's still an opportunity to win a prize. At the end of Round 2, the Pulitzer Center will look at all of the videos submissions that came in for Round 2 and select one additional contestant to receive a Sony VAIO notebook.

If you're game, here's the assignment for Round 2:
Report on a compelling topic or subject of any nature which you believe has not been sufficiently and/or accurately covered by the national media. All entries must be less than five minutes long and shot in High Definition.

Submissions are due by 12 p.m. ET on April 4, 2010.

Congratulations to the 10 semi-finalists, and good luck to everyone in Round 2!


Olivia Ma, YouTube News & Politics, recently watched "Jersualem: War in My Land"


URL: http://feedproxy.google.com/~r/youtube/PKJx/~3/wGUT_P8QFwU/project-report-round-2-begins-semi.html

[G] State of the (e-Commerce) web: are you in the top 10%?

Posted: 09 Mar 2010 11:20 AM PST

Official Google Enterprise Blog: State of the (e-Commerce) web: are you in the top 10%?

Last week, I sat down with Tim Horton, CEO of DiscountOfficeItems.com, to present a webinar entitled "How Discount Office Items Increased Revenue 6% by Switching to Google Commerce Search."

I appreciate any chance to speak in-depth with Google customers and partners, but what I thought was most interesting about my conversation with Tim was a quick poll we ran midway through the presentation: When asked how satisfied they were with current search performance on their website stores, 82% of respondents said that they were neutral, unhappy or very unhappy with it. Only 10% of respondents were happy or very happy (note that about 8% of attendees don't have search on their sites).

It's exactly this discrepancy that spurred us to create Google Commerce Search last year. While the web as a whole is advancing at a staggering pace, online retailers are lagging behind in the overall quality and usability of their websites. As a recent Forrester study (see reference below) showed, 17% percent of frustrated consumers walk away from their online purchases, and 11% give up on shopping when unable to complete online research. Improving search - a key element on any website - can help bridge this gap and bring shoppers through the purchase cycle.

We hope you'll join us next time to learn more about search and e-commerce, and in case you missed the webinar, you can catch the playback here.

Posted by Nitin Mangtani, Senior Product Manager, Enterprise Search team

"Web Sites That Don't Support Customers' Goals Waste Millions," Forrester Research, Inc., February 2010
URL: http://googleenterprise.blogspot.com/2010/03/state-of-e-commerce-web-are-you-in-top.html

[G] Ode to AdWords

Posted: 09 Mar 2010 09:59 AM PST

Official Google Blog: Ode to AdWords

[From time to time we invite guests to blog about initiatives of interest, and are very pleased to have Allison Schwam, Senior Search Analyst at Backcountry, join us here. -Ed.]

When you don't have to sacrifice your love of the outdoors for your career or vice versa, it's something special. In fact, my love of both skiing and marketing has grown dramatically since I took my job at Backcountry. Getting to work with Google, specifically managing our AdWords acount, is an online marketing geek's dream come true. Combine that with every skier's dream of Utah powder, and life is good.

Day traders wake up every morning to check their portfolio — I get up and check my AdWords accounts. Backcountry sells gear and equipment for the outdoor enthusiast from ski boots to tents, and we sell all of it online. My job is to drive valuable, qualified traffic 365 days a year to Backcountry using AdWords. The AdWords platform lets me manage hundreds of campaigns and hundreds of thousands of keywords with relative ease. I have access to huge amounts of data that are revealed as daily ebbs and flows in impressions, clicks and bids. If you do a Google search for [telemark ski gear], you'll see our ad:


Backcountry was founded in 1996 by two self-proclaimed ski bums, John Bresee and Jim Holland. Since then, the company has grown to hundreds of employees. I've been working here for over two years. Ultimately, our goal is to "crush it," as some ski town folk say: work hard, play hard.

A typical powder day for me is like this one last Friday when Park City got 12 inches of new snow overnight. Here's how AdWords helps me manage both work and fun.

7 – 7:45am
Roll out of bed.
Get the coffee going.
Fry eggs and bacon.
Check snow totals.

If it looks like a good ski morning, I first check my email and glance over our AdWords campaigns. All I need to do is my daily reporting to see that I'm on target for my revenue and cost goals. As long as things are okay, I email my boss to say I'll be out slaying the white dragon.

Just as I have the ideal tools to maximize our online campaign performance, I have the tools avid skiers covet for deep days: fat, rockered skis, stiff ski boots, Gore-Tex jacket and pants, helmet, goggles, merino wool layers, etc. After I grab my gear, I'm off.

7:45am – 12noon

My commute to The Canyons Ski Resort takes 10 minutes. My friends and I know how to get the most out of our time on the mountain, balancing chair lift time, snow quality and vertical. Does that sound a bit like cost-per-click, conversion rate and top-line revenue? Take this lift to that lift, ski the trees while we wait for that chair to open, get after our favorite steep lines. Next thing you know:

Photo by Jim Harris

Face shots are invigorating. Hard to explain, best to experience! After a few glances at the time and collecting my thoughts, I make my way off the mountain.

12pm – 5pm

I head a few miles down the road to the office. As the afternoon goes by, co-workers will emerge from their cubicles; sometimes because legs are cramping up but also to share stories about how the morning was. Where did you ski? How was the snow? Smiles all around.

I settle into work knowing what I need to succeed at my job is at my fingertips. AdWords gives me visibility into my programs to prioritize and understand trends. It also makes it easy to add and edit my account without getting bogged down in manual work. I regularly use Keyword Performance Reports to monitor both head terms and tail terms to stay on top of revenue opportunities. I'll take into account the average order value and also the percentage of clicks that turn into sales (rate of conversion) in order to manage our keyword bids. As I do bid updates, I also check the AdWords Preview Tool to see how our ads are ranked and what is going on with our competition. We don't really focus on "cost-per-click" but instead on "cost as percentage of revenue," which means the more people purchase, the more ads we can run. So the higher the return on advertising spend, the more room we have to grow our paid search presence.

5 pm – 8 pm

I like this afternoon time in particular because it's quiet and I can really focus on data-crunching. Uninterrupted time and a strong cup of coffee are essential for doing long-term analysis.

Campaign Performance Reports are great for identifying long- and short-term trends as seasons shift or for changes in demand by brand. We just wrapped up our winter sale, so this is a great time for me to run an Ad Performance Report to analyze which versions of ad copy had the strongest clickthrough rates for future reference. Finally, Google Insights for Search is a fun tool. It's a great way to connect with our buyers by discussing big-picture trends with the brands we carry. We can look at AdWords Campaign performance and try to tie it back to general search volume in the marketplace and identify product searches on the rise. In short, given our metrics focus, AdWords gives me the information I need to make decisions about specific keywords, bids, and our overall spend.

There are typically the same few folks hanging out at the office this late. We'll exchange some pleasantries, and as the lights get turned off I'll shut down my computer.

When I earned an undergraduate degree in marketing and cultural anthropology, I had only a vague idea how I was going to create a career with behavioral and analytical activities. It turns out online marketing is an exciting mix of real-time data and customer service. AdWords lets me manage campaigns very efficiently, so I have time to dig deeper and do the strategic analysis that makes this job about much more than just meeting revenue goals.

Finally, I picked Park City because it's more than a ski town. Here fanatical skiers, trail runners, bikers, snowboarders and climbers can live year round and still have a meaningful career. I'll always be grateful to companies like Backcountry and Google for making this possible: Backcountry for fostering the passions of the outdoor enthusiast, and Google for innovation in creating the forums and tools that really work for us.

Posted by Allison Schwam, Senior Search Analyst at Backcountry
URL: http://googleblog.blogspot.com/2010/03/ode-to-adwords.html

[G] Newspaper economics: online and offline

Posted: 09 Mar 2010 08:32 AM PST

Google Public Policy Blog: Newspaper economics: online and offline

Posted by Hal Varian, Chief Economist

It is widely recognized that the news industry is facing financial difficulties, but there is little agreement about the source of those difficulties or what can be done about them. The debate about the role of the web has been particularly heated: is it the source of the problem or the source of the solution? The Federal Trade Commission is exploring questions like this through a series of workshops on the future of the news industry. At the first round in December, Josh Cohen from the Google News team spoke about how we're working with news publishers to help them attract bigger audiences and generate more revenue. The next round of the workshop kicks off in Washington D.C. this morning, and I will be speaking about the economics of news -- offline and online. I first gave this talk at the UC Berkeley Graduate School of Journalism in January and wanted to give you a summary of my remarks here.

The news industry's financial problems started well before the web came along. Circulation has been falling since 1985 and circulation per household has been falling since 1947! Ad revenue for newspapers was roughly constant in real terms up until 2005, and ad revenue per reader actually increased up until that time. Since then, the drop in advertising rates due to the recession, coupled with a significant drop in circulation, has exacerbated newspapers' financial difficulties.

In the last five years many more people have been reading the news online: About 40% of internet users say they looked at online news "yesterday." Higher income households report even larger numbers, making online news readers a potentially attractive audience for advertisers.

However, visitors to online newspaper sites don't spend a lot of time there. The average amount of time looking at online news is about 70 seconds a day, while the average amount of time spent reading the physical newspaper is about 25 minutes a day. Not surprisingly, advertisers are willing to pay more for their share of readers' attention during that 25 minutes of offline reading than during the 70 seconds of online reading. So even though online advertising has grown rapidly in the last five years, it appears that somewhat less than 5% of newspapers' ad revenue comes from their internet editions, according to the most recent Newspaper Association of America data.

There's a reason for the relatively short time readers spend on online news: a disproportionate amount of online new reading occurs during working hours. The good news is that newspapers can now reach readers at work, which was difficult prior to the internet. The bad news is that readers don't have a lot of time to devote to news when they are supposed to be working. Online news reading is predominately a labor time activity while offline news reading is primarily a leisure time activity. One of the big challenges facing the news industry is increasing involvement with the news during leisure hours, when readers have more time to look at both news content and ads.

What about search engines? Many readers go directly to their favorite news site, but a good fraction use search engines to access news specific news topics. According to comScore, clicks from search engines account for 35-40% of traffic to major U.S. news sites. Since most newspaper ads are priced on a per-impression basis, this means that 35-40% of major U.S. newspaper online revenue is coming from search engine referrals. That is a big fraction of online advertising revenue but, as we saw above, online ad revenue is only about 5% of the total.

Furthermore, the real money in search engine advertising is in the highly commercial verticals like Shopping, Health, and Travel. Unfortunately, most of the search clicks that go to newspapers are in categories like Sports, News & Current Events, and Local, which don't attract the biggest spending advertisers.

This isn't so surprising: the fact of the matter is that newspapers have never made much money from news. They've made money from the special interest sections on topics such as Automotive, Travel, Home & Garden, Food & Drink, and so on. These sections attract contextually targeted advertising, which is much more effective than non-targeted advertising. After all, someone reading the Automotive section is likely to be more interested in cars than the average consumer, so advertisers will pay a premium to reach those consumers.

Traditionally, the ad revenue from these special sections has been used to cross-subsidize the core news production. Nowadays internet users go directly to websites like Edmunds, Orbitz, Epicurious, and Amazon to look for products and services in specialized areas. Not surprisingly, advertisers follow those eyeballs, which makes the traditional cross-subsidization model that newspapers have used far more difficult.

Some have argued that the solution to the financial problems of newspapers is to charge for access. Many people place a high value on news, and there is clearly a significant social value to having a well informed citizenry. The problem is that there is a lot of competition among news providers, and this competition tends to push prices down. News sources that have highly differentiated content may be able to make pay-for-access work, but this will likely to be difficult for more generic news sources.

In my view, the best thing that newspapers can do now is experiment, experiment, experiment. There are huge cost savings associated with online news. Roughly 50% of the cost of producing a physical newspaper is in printing and distribution, with only about 15% of total costs being editorial. Newspapers could save a lot of money if the primary access to news was via the internet.

New tablet computers like the Kindle, iPad, and Android devices may encourage people to read online news at home in the comfort of their easy chairs. At Google, we certainly don't think we have all the solutions, but we are definitely keen on working with the news industry to help it attract bigger audiences and generate more ad revenue. Experiments like Fast Flip, Living Stories and Starred Stories may help pull together the at-work and at-home access to the news. Online news access on handheld device like cell phones and tablets is likely to be quite different from traditional newspapers reading, with much more multimedia content, interactivity and reader involvement. The transition to a fully online news will be difficult, but there's a good chance that we will emerge with a significantly more compelling user experience.
URL: http://googlepublicpolicy.blogspot.com/2010/03/newspaper-economics-online-and-offline.html
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