Yell becomes Google AdWords reseller in UK

LONDON Thu May 14, 2009 5:34pm BST

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LONDON (Reuters) - British yellow-pages publisher Yell YELL.L has become an official reseller of Google's (GOOG.O) AdWords in the UK, further expanding the properties on which it can sell advertising beyond its own sites.

The debt-laden directories group, whose business model has been undermined by classified advertising's move online, said on Thursday it would offer a service to manage Google AdWords online advertising campaigns on behalf of its customers.

AdWords works by matching keywords provided by advertisers to those consumers use in Google searches, and displays the ads as sponsored links. The prominence with which the ads appear is determined by an auction process, and the relevance of the ads.

"Yell's Search Marketing service... is part of a wider strategy to make leads from all online sources accessible to Yell advertisers," the company said in a statement.

Yell, which is already a reseller of AdWords in the United States, is due to report fiscal fourth-quarter results next week. It has forecast that organic sales would fall 12 percent, and is preparing for sales not to grow at all this fiscal year.

The company also operates in Spain and Latin America.

Yell, which has a base of more than 450,000 small and mid-sized businesses in Britain, declined to comment on the terms on which its new service would be offered.

As part of the service, it will create Web pages for customers and help them optimise their bids through automated means. It says these labour-intensive tasks have presented barriers to the adoption of search by many small businesses.

(Reporting by Georgina Prodhan; editing by Elaine Hardcastle)

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