Yahoo! Inc. (YHOO) announced on Monday that it has formed an advertising distribution alliance with seven companies representing more than 150 newspapers across the United States.
The Sunnyvale, Calif.-based technology firm will deliver search, graphical and classified advertising to consumers using Yahooâ€™s HotJobs employment website. No financial terms were disclosed.
We believe the local segment is largely untapped and provides significant opportunities to expand audience engagement and subsequently grow local advertising,â€ said Terry Semel, chairman and chief executive officer, Yahoo! Inc.
The deal will allow newspapers to get closer to the fast-growing U.S. online advertising market. Bank of America expects the segment to grow from an estimated $3.4 billion in 2006 to $12.4 billion by 2010.
At first, advertisers who list jobs in the newspapers will have the chance to post their classifieds on Yahooâ€™s job site known as HotJobs. The deal will also call for newspapers to use a co-branded version of HotJobs on their website career sections. Newspaper content will also be distributed through Yahoo search results.
This relationship will significantly extend our local assets to a much wider audience, and gives us the technology required to fulfill the growing demands of advertisers and consumers, William Dean Singleton, CEO of MediaNews Group, and Victor F. Ganzi, president & CEO of Hearst Corporation, said in a joint statement.
The publishers have a circulation in 38 states that includes Belo Corp. (BLC), Cox Newspapers Inc., Hearst Newspapers, Journal Register Co. (JRC), Lee Enterprises Inc. (LEE), MediaNews Group and E.W. Scripps Co. (SSP).
Yahooâ€™s shares closed down 19 cents or 0.71 percent to settle at $26.72 on the Nasdaq exchange.