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Fairfax’s managing director of Australian Metro Publishing,Chris Janz,said the partnership was about playing to the strengths of Fairfax and not trying to “be everything to everyone”.Credit:Dallas Kilponen

While many media companies have battled the disruptive influence of US technology giants such as Google and Facebook,Fairfax’s managing director of Australian publishing,Chris Janz,said partnership would allow both companies to concentrate on their respective strengths.

“It is important Fairfax doesn’t try to be everything to everyone,” he said.

By giving Google control of booking advertisements on websites such assmh.com.au,the.age.com.au andafr.com,Fairfax hopes the Silicon Valley giant’s superior scale and expertise in placing ads through automated platforms will allow advertisers to better target specific audiences.

Google handles huge demand from potential advertisers because of the reach of its ubiquitous search engine. The US company has at times struggled to find enough quality slots to meet these ads,with platforms such as YouTube forced to refund advertisers after it was revealed paid ads appeared alongside extremist and illegal content.

Industry sources said the partnership,which is expected to begin in March,could lift advertising revenue by “tens of millions of dollars”.

Fairfax chief executive Greg Hywood said the partnership would cement the company at the “global forefront of digital publishing innovations”.

“We expect upside performance from this partnership will allow us to make new investment in our journalism,” he said.

The likes of Google and Facebook are also facing greater political scrutiny over their impact on traditional news outlets,which have struggled to maintain profitability in the digital age. In Australia,the Senate is conducting an inquiry into the future of journalism while the competition watchdog is also conducting an investigation.

Sources familiar with the deal said talks began in November and came years after failed attempts by Fairfax and rival News Corp to establish an automated ad exchange. Former News Corp boss Kim Williams had been interested in the two publishers joining forces to take on the US technology companies but parted ways with the Rupert Murdoch-controlled company in 2013.

The deal still allows advertisers and media buyers to work with Fairfax directly acrossThe Sydney Morning Herald,The Age,The Australian Financial Review,WAtoday,Canberra Times,Brisbane Times,and lifestyle properties.

“If media companies sit back and talk about how their world has been disrupted by new entrants but don’t actively do something to address it,you end up deciding your own path,” Mr Janz said.

There could also be an element of data-sharing,he said,but added the two companies were yet to work through these details.

Fairfax and Google will also tackle product development,with digital subscriptions to be a major focus.

Google Australia and New Zealand managing director Jason Pellegrino said the company had been working for a long time with publishing partners.Credit:Anthony Johnson

“One way people are introduced to our mastheads and products is by Google search. Figuring out how we can work together to introduce people to our subscription products is really key,” he said.

One potential example could see Google promote articles higher up the search page if the user is a subscriber to that publication.

Google Australia and New Zealand managing director Jason Pellegrino said the company had been working for a long time with publishing partners.

“This deepening of our partnership with Fairfax allows us to jointly demonstrate the power of programmatic sales by combining Google’s best-in-class technology with Fairfax’s quality brands and deeply engaged audiences,” he said.

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