Insider Chatter by Donna Bogatin

Google’s big, bad coopetition problem is rearing its ugly head once again.

CEO Eric Schmidt rises to the defense of “planning and buying traditional newspaper media in both national and local newspapers”:

Newspapers are an important source of information and a powerful communication tool. With Google Print Ads we will bring more advertisers to newspapers which will ultimately benefit readers, publishers and advertisers.

Why is direct online competitor Google promoting newspapers?:

You probably already know that Google can help you connect with your customers online. Now, with Google Print Ads, we can help you reach customers offline as well.

The program is not new, and it has not met with Googley success, as I analyzed earlier today in Google AdSense NOT Powering Newspapers, or Radio

What’s more, Google acknoweldges “newspaper publishers will continue to work directly with their loyal base of advertising customers.”

What’s the Google deal then?

Why is Google concsecrating time, effort and money to resell ad inventory owned by competing media at fixed, below market prices yielding small Google commissions, if any: Because Google wants to make all the advertising in the world, and all the world’s advertisers, Google centric, PLUS sell more AdWords.

Schmidt routinely predicts that more and more of marketers’ offline ad budgets will shift online, to Google in particular, as advertisers seek the higher ROI and greater trackability Web based advertising offers. Moreover, Google regualrly touts the superiority of the Google advertising philosophy and ad platform over all others.

In other Google words, “you can make money without doing evil” and “our users trust Google’s objectivity.”

As a proud reseller of advertising in the media of others, however, Google is not pitching itself as the ultimate in advertising trustworthiness.

Google affirms: “Newspaper ads are considered trustworthy, more than any other medium.” What’s more: “85% of readers say they have bought something advertised in the newspaper, and readers are highly engaged when reading the newspape.” according to Google.

Who needs AdWords then? Hardly. Google is looking for a one-two ad punch, big time, with AdWords taking the lead:

Newspaper advertising is a great complement to AdWords, allowing you to expand the reach of your marketing campaigns.

The sole advertiser testimonial in Google’s press release on its Print Ads program today is actually a testimony for AdWords! Simon McIver, director of marketing acquisition at Covad:

Our website is an effective way to acquire new customers. By adding newspaper advertising to our online initiatives, overall impressions on purchased keywords increased 20% over the five day period immediately following the print run.

McIver apparently still finds the Google ad platform trustworthy. SEE: Google’s Big, Bad Risk: Coopetition

ALSO: TechCrunch: Hot, or Not, for Silicon Valley?

CONTACT DONNA BOGATIN