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Last Updated: Monday, 20 November 2006, 11:18 GMT
Yahoo strikes deal with US papers
Yahoo home page
Yahoo.com is the world's most popular website
Web giant Yahoo is to work with seven US newspaper groups sharing online advertising, content and technology.

The deal includes 176 regional papers, which will start using Yahoo's HotJobs classified jobs site from December.

People involved with the partnership said it would later include other types of advertising and shared news content and search abilities.

The deal boosts Yahoo's regional exposure and gives the papers national reach for their local ads and content.

Shrinking profits

More than 500 million people around the world visit Yahoo web sites each month.

In October the company reported a 38% fall in quarterly profits after weakness in financial and car advertising revenues.

Analysts have criticised the online media and search firm for being slow to innovate compared to its rival Google and have warned that Yahoo could see its ad revenues slump if US economic growth slows significantly.

In recent years newspapers have been struggling to deal with a shrinking share of the lucrative classified advertising market in the face of competition from online sites including Craigslist and HotJobs.

"Most local newspapers have done a pretty good job of generating local revenue into their sites," Leon Levitt, vice president for digital media at Cox Newspapers told Associated Press.

"It's so much harder to generate national revenue because a lot of advertisers don't want to deal with 100 different newspapers. This will make it simple."

Google threat

Cox Newspapers is one of the press groupa working with Yahoo, along with Belo, Hearst Corp, E.W. Scripps, MediaNews Group, Lee Enterprises and the Journal Register.

The papers involved include the San Jose Mercury News, the Atlanta Journal-Constitution and The Dallas Morning News.

Earlier in November, Yahoo's rival Google announced that it was going to sell advertising space in the print editions of 50 major newspapers, including The New York Times and The Washington Post.

Google's shares have soared as it has become apparent that it has captured an increasingly large share of overall US online advertising revenue.


SEE ALSO
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