Google Audio off to rocky start...

The-Hammer · Post by **The-Hammer** » Sat Feb 10, 2007 12:28 am

Linky

[quote="The New York Times"]Google Encounters Hurdles in Selling Radio Advertising

By MIGUEL HELFT
Published: February 10, 2007

SAN FRANCISCO, Feb. 9 â€” When Google acquired dMarc Broadcasting, a company whose software allows marketers to place ads on radio stations, for up to $1.24 billion early last year, it was seen as a clear sign of Googleâ€™s ambitions to extend its dominance over Internet advertising to other media.

Now, there are indications that Google Audio, as the companyâ€™s foray into radio advertising is known, has hit some snags. The two brothers who founded dMarc in 2002 have left Google amid growing speculation by analysts and radio and advertising executives that the Internet giant is finding it harder than expected to muscle its way into the radio business.

Industry insiders cite everything from culture clashes to resistance in the radio industry, which relies heavily on sales representatives, to automate its advertising systems. But the hurdle mentioned most often is Googleâ€™s apparent inability to secure enough air time, or inventory, to make its system attractive to advertisers.

â€œAt a high level, dMarc and Google are both trying to move mountains and reshape traditional media,â€

Tom Taggart · Post by **Tom Taggart** » Sat Feb 10, 2007 8:34 am

First Clear Channel, now Google.

Both are learning that radio advertising remains an essentially local business.

Ace Purple · Post by **Ace Purple** » Sat Feb 10, 2007 10:17 am

I found this to be of interest:

the hurdle mentioned most often is Googleâ€™s apparent inability to secure enough air time, or inventory, to make its system attractive to advertisers.

You can't sell what you don't have (unless you're pulling an eBay scam.)

Mark Hallburn · Post by **Mark Hallburn** » Sat Feb 10, 2007 10:20 am

Could it be that local broadcasters are keeping Google and others out by not allowing access? Or is it simply that there are plenty of local ads to sell and network ads aren't that necessary?

Tom Taggart · Post by **Tom Taggart** » Sat Feb 10, 2007 5:13 pm

Friday afternoon: ops mgr and sales mgr butting heads (nicely) because car dealer spot scheduled to begin at noon hadn't been sent to us yet--the log was done, and we were sold out to late evening (basketball game not helping avails problem).

With satellite fed programming we have plenty of inventory--but also an efficient sales staff. We're not going to have very much prime time inventory left very often. And we would certainly not leave it open to be sold at a discount to Google.

Sure, there's always Sundays, evenings and overnight.
But as Google is finding out, no-one wants Sundays, evenings and overnights.

Dave Allen · Post by **Dave Allen** » Sat Feb 10, 2007 5:49 pm

We are Googling and so far no problems.

sportsvoice · Post by **sportsvoice** » Sat Feb 10, 2007 11:10 pm

Tom Taggart wrote:Friday afternoon: ops mgr and sales mgr butting heads (nicely) because car dealer spot scheduled to begin at noon hadn't been sent to us yet--the log was done, and we were sold out to late evening (basketball game not helping avails problem).

Dumb question since I've never dealt with the impact that local sports has on traffic logs...how do you deal with that sort of thing? Especially if you're doing a high school game that has a start time that moves around based on when the reserves get done playing.

Rock · Post by **Rock** » Sun Feb 11, 2007 7:40 am

That's happened with us...most of the time, we give the agency or local contact a call and explain the situation. They're pretty easy to deal with that way, especially if they're the ones who made the problem.

In a somewhat related observation, it seems the faster the delivery method, the slower the agencies work on getting the spots to you.

As for Google, the revenue system is well suited for AM (with it's excess of inventory). One bad part comes when the GM or owner sees one decent check from DMarc and decides 'more is better', thereby loading up the logs with the dang things. PDs beware. Also, you can be bitten by giving too many avails too soon...there's nothing like a hair-replacement spot running 8 times in 4 hours...blech.

Dave Allen · Post by **Dave Allen** » Sun Feb 11, 2007 9:54 am

Yesterday morning it seems I ran the Google spots for the Vermont Teddy Bear Co. every 15 minutes or so.

Ace Purple · Post by **Ace Purple** » Mon Apr 16, 2007 12:10 am

Matt Drudge has been teasing with this headline for several hours:

CLEAR CHANNEL has an advertising deal with GOOGLE....

My guess is that this will be in the New York Times tomorrow (Monday) and that he'll post a link once it's online. I'm curious about what has been worked out.

I know that sales reps aren't all that plentiful on here (at least non-lurkers), but this could be a risk toward the traditional radio sales force business plan.

Ace Purple · Post by **Ace Purple** » Mon Apr 16, 2007 1:08 am

Google Inc. and Clear Channel Communications Inc. announced a long-term agreement Sunday that will allow the Internet search leader to place advertising for its online customers on more than 675 Clear Channel radio stations.

http://apnews.myway.com/article/20070416/D8OHFDQ00.html

Cameron · Post by **Cameron** » Mon Apr 16, 2007 4:55 am

You can tell some of the savvy Google programmers have gotten a hold of SS32 and done quite a back-end revamp.

Google doesn't have a huge presence on the floor, but they thought they'd save about $100,000 this week by doing business at their suite at the Hilton.

Google's party is @ 5 tonight.

Search: "Lipk my stockings".

HD listening-van at 3pm. Too bad we'll be line-of-sight to Mt. Potosi the whole time. Not much of a test.

Tom Taggart · Post by **Tom Taggart** » Mon Apr 16, 2007 7:55 am

Apart from the computer-geek "wow" factor, Google's plan is different from the traditional rep business how?

The Katz people should be polishing their resumes, maybe?

This smells like the accounting-side's grand scheme to cut costs and increase profits that will founder very quickly on the rocks of reality. I've listened to one particular WV station (not on the message board) that boasted of the sales from the D-Marc/ Google system--their daytime air time was filled with tacky per-inquiry spots. Which should probably fit in on a lot of CC stations, I suppose.

But it is not the way to attract major $$ from the upper tier of national advertisers. They will continue to use their own agencies for ad placement, or deal with the established rep firms who can deliver the times they want, and the demos they think they need.

Arp2 · Post by **Arp2** » Mon Apr 16, 2007 12:11 pm

Cameron wrote:Google's party is @ 5 tonight.

Search: "Lipk my stockings".

I guess I'm out....

Your search - "Lipk my stockings" - did not match any documents.

Big Media · Post by **Big Media** » Mon Apr 16, 2007 2:36 pm

Arp2 wrote:
Your search - "Lipk my stockings" - did not match any documents.

Humm. Neither did "Nishban hollabaud hoshcot".

Ace Purple · Post by **Ace Purple** » Tue Aug 07, 2007 1:41 pm

For what it's worth, I'm giving the Google audio ad sales system a try. Through the end of August, they are offering a $400 credit for any AdWords customer who produces an ad through a third-party contractor via the Google Ad Creation Marketplace. That expense will be no more than $100 for me, which is worth it to me to find out exactly how this works (it's funny that I had to get out of radio to make the kind of money where I can do that sort of thing in radio.)

It just so happens that I'm working with a really good band (The Karg Boys) that I'm doing my best to help out, and I decided to use this as an opportunity to promote their music on some stations, mostly Young Country and a few smaller markets in the southeast (where they hope to play some gigs on down the line.) Google is providing the $400 credit, and I'm going to do my best to maximize it.

So far there are 154 markets available. Huntington and Charleston are listed on there (as "Charleston-Huntington"), and the list ranges from big (New York, NY) to small (Rockford, IL.) Not every station in every market is available, but someone with decent savvy could at least make an educated guess as to what stations are involved. I can pick by demographic (e.g. P18-34, F25-54, M65+) by format, etc. I've never seen anything quite like it.

Radio sales is not a sum zero game, and this clearly will allow access for people who might otherwise not take part. I don't want to deal with pushy sales people, and trying to distribute $400 over 30 stations would be a brutally painful process to accomplish (and that would be $400 out of pocket vs. the credit from Google.)

Local loyal advertisers will still need ad execs, but in particular for people wanting to buy a format or a region, this is a great option. I'll be sure to let you all know how this works out.