SUNNYVALE, California: Yahoo is reinforcing its relationship with US newspaper publishers following the announcement that it has expanded the consortium with which it works to sell advertising online.

The deal is an extension of an agreement late last year with a smaller group of publishers to sell help-wanted ads [WARC News: 21-Nov-06].

The 12 companies, including Hearst Newspapers, MediaNews, Cox Newspapers and McClatchy, will use Yahoo's search technology on their websites and share revenue generated from the ads placed alongside search results.

More than 260 newspapers across 44 states will also be able to sell local ads on certain Yahoo properties, and their articles will appear on the search engine's news, finance and sports websites.

Comments Sue Decker, head of Yahoo's advertiser and publisher group: "This [deal] allows them to sell on our [advertising] inventory and us to sell on their inventory, we are opening up to partners our ad-serving network and that's a very significant move."

Boosting online ad revenues is a priority for newspaper publishers as readers and advertisers continue their web migration.

Last month, the Newspaper Association of America reported overall print advertising at newspapers fell 1.7% in 2006, contrasting with a 31.5% increase in online advertising. Total revenue edged down 0.3%.

Data sourced from Financial Times online; additional content by WARC staff