CNN Will Run AdSense

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Here's some big news that came out yesterday, courtest of BizJournals...

Google Inc.'s AdSense advertising program will appear on CNN.com, the two companies said Tuesday.

Atlanta-based CNN.com and Mountain View-based Google (NASDAQ:GOOG) said the agreement calls for the AdSense program to place "contextually relevant" ads alongside CNN.com content.


Under the terms of the deal, Google will serve as the exclusive provider of auction-based text advertisements throughout CNN.com.

Financial terms of the deal were not disclosed.
I don't think this is a sign that Google AdSense pays higher advertising earnings compared to CNN's own in-house advertising efforts.

Rather, I think this is more about CNN wanting to outsource it's advertising efforts to Google AdSense. That is, if Google can automate the process of signing up advertisers, and delivering contextual relevant ads to CNN, then that may provide potential cost-savings for CNN in the form of job elimination.

That in itself is revenue. If you don't have to spend your time courting advertisers, and maintaining relationships with them, it can save you time and money.

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