Google CEO Pushes Newspapers To Build New Web Format (CEO do Google empurra jornais para que eles construam novos formatos web)

Mais um capítulo de nossa incursão na propaganda online. Nosso argumento de que o mundo online está mudando as regras de negócio da mídia tradicional se confirma a cada dia!  O post abaixo é do Wall StreetJournal.


APRIL 7, 2009, 3:24 P.M. ET
Google CEO Pushes Newspapers To Build New Web Format

By Scott Morrison and Nat Worden

SAN FRANCISCO (Dow Jones)–Google Inc. (GOOG) Chief Executive Eric Schmidt called on newspaper executives to create a “new format” for online journalism, including new delivery models that give consumers personalized content they want to read.

“Try to figure out what your consumer wants,” Schmidt said during a keynote speech at the Newspaper Association of America’s annual convention in San Diego. “If you [upset] enough of them, you will not have any of them.”

The speech Tuesday marked Schmidt’s first appearance before a gathering of top newspaper executives, many of whom have expressed growing concern that their content has become a source of revenue for Google, even as their industry’s business model continues to crumble as readers gravitate to online news.

Schmidt called on the industry to join with Google to create products that would entice readers to go beyond headlines listed on search engine pages. He said Google envisions a layered approach to information that is personalized, in order to draw in readers.

“We think we can build a business with you,” he said. “That is the only solution we can see.”

With ad markets suffering amid the global economic downturn, observers in the newspaper industry are revisiting the controversial issue of charging online subscriptions for newspaper content to support news gathering operations. Critics say online subscription models will fail for most publishers, because consumers have become accustomed to free, online news content, which is widely available.

Schmidt said Google favors monetizing online content through advertising because the Internet – on a fundamental level – doesn’t respect traditional methods of restricting content.

“Advertising still is the best way to reach a large audience,” Schmidt said. “It’s very difficult to hold information back [on the Web].”

Schmidt said new forms of online advertising that provide a service or value to users in exchange for their attention will supplant traditional forms of advertising.

“Advertising that’s useful is going to work,” Schmidt said. “We know it works because we’ve tested it.”

Still, he foresees the publishers using a combination of online business models, including subscriptions, such as so-called micro-payments – which could allow a reader to pay a few cents each for an article they want to read online – and the current ad-supported free content model.

Schmidt compared the digital future of the publishing industry to that of the TV business, where broadcast networks draw the largest audience with an ad-supported model, and cable networks attract more niche audiences with subscription-based models and a combination of the two.

He said technologies are available to allow publishers to create an online micro-payment system, like the one pioneered in the music business by Apple Inc.’s (AAPL) iTunes.

Meanwhile, a number of top news executives have recently raised the level of rhetoric in questioning their relationship to Google and other online news aggregators, which link to news articles while selling search terms or ads on pages that provide the links.

Other publishers have objected to the way Google’s search engine treats original, professionally reported content versus content generated by sites that comment on news being reported elsewhere.

The Associated Press on Monday said it was launching an initiative to better control its newspaper members’ material online. Google, meanwhile, has noted that publishers can easily prevent their content from appearing in Google’s search results.

Schmidt noted that Google has a multi-million dollar deal to host AP content on its pages. He added that he was “a little confused by all the excitement” in the media following the AP announcement on Monday. Schmidt, however, did not directly address the AP’s initiative.

The company said in a blog post earlier Tuesday that its search technology drives users to newspaper Web sites at a rate of more than 1 billion clicks per month. Google also said its AdSense program pays out millions of dollars to newspapers that place ads on their sites and the Internet giant hopes new targeting technology will make ads more relevant to readers and more profitable to newspapers.

Research group Outsell Inc. estimates Google is responsible for 20% to 30% of the traffic on the average newspaper Web site, but the online newspaper business remains only a thin slice of the industry’s revenue base.

Google reported a 31% revenue increase last year, to $21.8 billion, while newspapers overall lost roughly $5 billion in ad revenue, and the industry has been savaged by a rash of bankruptcies, job losses and closings.

Schmidt added that newspapers must recognize a fundamental change in which readers seek out a mixture of professional content, user-generated content and now, real time content from micro-blogging service Twitter.

“The reality is that the vast majority of information is not being produced [by professionals],” Schmidt said. “It’s being produced user-to-user. A truly fundamental change in the way information is being processed is that we’ve given the tools of publishing to everyone.”

-By Scott Morrison; Dow Jones Newswires; 415-765-6118;

-By Nat Worden, Dow Jones Newswires; 201-938-5216;

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