Eric Schmidt is optimistic that Google can help save the traditional news business, the search giant’s CEO tells Wired UK's August edition in a rare in-depth interview.
“We think that the next generation of display ads, which are derivative of [our] DoubleClick acquisition, will probably be much more lucrative for the newspapers because they’re more targeted,” he tells Wired UK. “It’s more instantaneous, it’s more personal, it’s more targeted, and it will be monetised with these higher- and higher-quality display ads.”
By sharing such display-advertising revenue with newspapers, their business will gain new income streams, he says. “It will certainly be saved, but it will be in a somewhat different form. The fundamental problem is the news industry has this strange bargain where the traditional print ads and classifieds paid for investigative reporting which was highly valuable and very expensive. But it’s very hard to advertise against ‘murderer’ or ‘war’. So it’s a funny kind of packaging problem.”
Schmidt is also upbeat about the state of the economy. “The global financial crisis is behind us,” he says. “And though I don’t know what the recovery will look like, there’s a bottom and there’s the beginning of a step up. Even here in London I think the mood is better, just as you move down the street.”
The full 7,500-word interview with Eric Schmidt, and other senior Google executives including Sergey Brin, is published in the August issue of Wired UK magazine, out now.
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