Google To Buy Radio Advertising Firm 149
M3rk1n_Muffl3y writes "According to the BBC Google is buying US radio advertising firm dMarc Broadcasting for an upfront payment of $102m (£58m), rising to a possible $1.14bn by 2009. Interestingly it comes soon after Robert X. Cringely's prediction that Google will soon expand into targetted TV adverts. It looks we are finally beginning to see Google's transition to mainstream media."
Radio? When will generic-casting be dead? (Score:5, Insightful)
Google is probably stupid to get into this business. I don't listen to the radio anymore, and I doubt many kids half my age do anymore either -- the iPod is that strong. The frequencies used for public broadcast radio seem wasted to me -- I'd rather see them deregulated and offered for another WiFi band. More WiFi means more access to streamed content as I need it. Hell, I stream MP3s to my PDA already via my Bluetooth-enabled EDGE-bandwidth cell phone (150kbps low latency all over Chicagoland).
So what does Google know that I don't? I'm sure a lot, but I can't see them being right in this situation. Maybe they're ahead of where radio will be in 10 years -- is it possible we'll see the large radio cartels end their regime, replaced with smaller stations all over the place? Could Google perform real time contextual advertising on 5000 watt stations, targeting listenes better?
Google's advertising engines don't work well on pages with too much variety it content. I see 50,000 watt stations having the same problem -- they're targeting too many different customers (and seemingly targeting them with the same generic content on 8 different stations).
How do Google's ads translate to those without sight? Radio only works as an audio mechanism, so Google's visible advertising campaign won't work here, either.
I can see Google's future in buying a company like Clear Channel -- they own most of the billboard advertising in Chicagoland, and they are also advertising in nightclub bathrooms and on the doors of toilets in office buildings. Google can find a way to digitize these ads. Is it possible that dMarc Broadcasting does more than radio (like Clear Channel)?
If it is just radio ads, I don't see it. Wasted bandwidth for a product that can't keep up with what the current customer base needs.
Re:Radio? When will generic-casting be dead? (Score:3, Interesting)
Only thing i can think of is voice ads in podcasts...
Re:Radio? When will generic-casting be dead? (Score:5, Interesting)
The radio ad-sales people are some of the best I've ever met -- in every market I've been in. Is Google buying up this aggressive sales company in order to accumulate the best sales minds and personalities to use to sell AdWords and other tools to advertisers?
If you can't hire them away, buy their bosses out.
Re:Radio? When will generic-casting be dead? (Score:2, Interesting)
I disagree with the idea that radio is dead. Talk radio in the Boston Metro area is stronger than ever, and there are two stations in particular that get a decent penny for ad minutes (AM 1060, news and traffic, and AM 850, sports talk.)
Although, local radio stations are all running their own ads taking a not-so-subtle jab at satellite radio...
Re:Radio? When will generic-casting be dead? (Score:1)
They claimed they purchased the company mostly for the Sales people, as opposed to the products.
Re:Radio? When will generic-casting be dead? (Score:2)
Re:Radio? When will generic-casting be dead? (Score:2)
Re:Radio? When will generic-casting be dead? (Score:3, Insightful)
Clearly, you're in touch with the same reality that all other US citizens inhabit.
Granted, not as many people listen to radio nowdays. But it's not completely dead. It's still everywhere, and everyone has access to it. Believe it or not, even having a broadband connection at home puts you in the minority, buddy.
Re:Radio? When will generic-casting be dead? (Score:3, Insightful)
Of course I am. I don't want to get into my usual anti-copyright debate today, but copyright gives the content cartels control of the media schemes use to publish content -- keeping streaming companies from being as competitive as the radio cartel.
If streamers had the ability to offer content as cheap as the radio can (in terms of paying off the content thugs),
Re:Radio? When will generic-casting be dead? (Score:2)
Re:Radio? When will generic-casting be dead? (Score:1)
As one post suggests, perhaps the move to radio is a precursor to ads in podcasts? To take this a half-step further, these ads could easily be targeted, or work on a per d/l model--the episode I download could have different ads from you
Re:Radio? When will generic-casting be dead? (Score:2, Insightful)
Re:Radio? When will generic-casting be dead? (Score:2)
Do you have ad-blindness, or in this case, ad-deafness?
If the radio spectrum was gone, deregulated to increase WiFi bandwidth, would you see yourself using on-demand streaming "radio" if it was available freely and you had the right tuner for it?
To me, "broad"-casting is a dead mechanism. There are two things holding it back -- the distribution cartels don't want to change (they've invested billions in the current hardware and political arena), and the force cartel (government) is too in bed wi
Re:Radio? When will generic-casting be dead? (Score:2)
Who cares? Google doesn't know shit, they never said they did. In fact they really don't even own anything.
All Google does is downloads freely available information (crawl, spider), organizes it well (database), and quickly and freely gives the important information to people when they ask for it (search). And they use a freely available OS to run the stuff (Linux).
People simply give Google money for advertising because they have the best real estate on the web. Goo
Re:Radio? When will generic-casting be dead? (Score:1)
Re:Radio? When will generic-casting be dead? (Score:3, Interesting)
Re:Radio? When will generic-casting be dead? (Score:2)
Streaming on-demand music and voice has to happen. Podcasting is nice and all, but wireless "podcastin
Re:Radio? When will generic-casting be dead? (Score:2, Insightful)
Exactly how much longer do you think Satellite radio will be commercial free? Cable started out the same way and now the only channels that are any different than over-the-air channels are the pure premium channels.
Satellite radio will surely go to this model
Re:Radio? When will generic-casting be dead? (Score:2)
Follow the Money (Score:2)
Re:Radio? When will generic-casting be dead? (Score:2)
Re:Radio? When will generic-casting be dead? (Score:2)
Re:Radio? When will generic-casting be dead? (Score:2, Interesting)
Google is probably buying this corp for their contacts and expertise in advertising outside of the "virtual" arena. Makes a bit of sense, really. Why start from the gr
Re:Radio? When will generic-casting be dead? (Score:2)
There are two ways to target ads as far as google appears to be concerned initially. The first is search (duh) and the second is locality (almost a duh, see google local, maps, etc). Google's answer to the first is up and running - index everything, then advertise to index users based on their criteria.
The second answer appears to be to group the index users by locality then tailor advertising to that group. If there were oodles of money in my pocket, here is what I would do:
1) Lobby to
Re:Radio? When will generic-casting be dead? (Score:2)
Re:Radio? When will generic-casting be dead? (Score:2)
He's a nutcase, I hear.
AdSense (Score:4, Insightful)
Re:AdSense (Score:2)
It'll be interesting to see if anyone is able to compete with adsense as it expands into other mediums.
Re:AdSense (Score:2)
In the long run, though, Google's aggregation algorithms seem to be getting better every day. In the future, AdSense won't just offer contextual ads based on the site, but also based on the browsing user.
Re:AdSense (Score:2)
How is it supposed to sense anything?
Radio doesn't know that you are listening when it sends out an ad.
Google is most likely buying a radio-ad company so it can get radio-ad services for opportunity cost, and make a buck as a radio pipelining service for other companies, possibly bundling it with online ads as a value-added feature.
But anyone thinking that this somehow is a "natural" extension of AdSense...sheesh...
Re:AdSense (Score:1)
Re:AdSense (Score:2)
The correlation is tempting, but not compelling.
If this is actually worth 10 cents per ad in business creation, I'll be surprised.
Alternate motive (Score:2)
For instance, recently Dean had a billboard all paid for and the contract signed, and it basically just said some republican congressman should focus on winning iraq instead of name-calling murtha/cleland/gore/etc. The ad was refused and the contract canceled, with no reason given other than the company just didn't want to put it up. Who knew it was legal/ethical/mo
LOL (Score:4, Insightful)
No, we are seeing Google's transition to ALL media.
Think what you will of such things.
Re:LOL (Score:2)
And in related news, Google has announced its intention to acquire the caves of Lascaux in France, world-famous for their Neolithic cave paintings. Google did not comment when asked about recent bulk purchases of charcoal, red ocher and animal fat.
Ditto (Score:4, Insightful)
Watching the Nightly News is simply a chance for me to discuss the day's events with other people. I've already read all the 'big' stories of the day by 6/7 o'clock and I usually get more details to boot.
The newspaper does a bit better, as they can dedicate more space to details and they have much more local information, but even then, I'd still rather scan two or three online articles to get a variety of viewpoints.
Because of the internet, I get a much better idea of what's really going on.
Re:Ditto (Score:1)
Television journalism is dismal (Score:2)
I agree, I think. In my local area at least, the only reason to watch television journalism is to get additional moving pictures of certain events. Anything resembling journalism is dismal. Nightly news contains a few facts combined with large amounts of subjective speculation (stated as fact or n
Do you believe it now? (Score:2)
Let's face it people, Google doesn't care about anything unless it will help/hinder their ad sales. PERIOD. Just remember, when you use Google every byte of
Re:Do you believe it now? (Score:2)
Talking about google (Score:2, Interesting)
It looks like google opened op gtalk to the other public jabber networks. It's possible to talk server-to-server now!
afaik the Bitlbee team got the heads up [bitlbee.org].Re:Talking about google (Score:2, Funny)
targeting on the radio.....dot...dot...dot... (Score:2, Insightful)
Clearly, I must be missing something. Right?
--
http://www.wi-fizzle.com [wi-fizzle.com]
Re:targeting on the radio.....dot...dot...dot... (Score:2, Interesting)
Re:targeting on the radio.....dot...dot...dot... (Score:2)
They then sell those listeners to their customers: the advertisers.
Just as AdSense selects ads based on the content on your web page, advertisers buy radio time based on who is listening to your radio station.
Rock stations may target males 18-32 years old, soft rock may target females in the same age range. NPR sells ears that are well educated and with good incomes.
Re:targeting on the radio.....dot...dot...dot... (Score:3, Interesting)
Re:targeting on the radio.....dot...dot...dot... (Score:3, Interesting)
It does make sense if you think about the fact that Google is probably accruing much better statistics about what people actually want (via Google Local searches) without having to rely on guestimations and shaky demographic statistics.
When Sam's Autobody opens in South San Francisco and wants to advertise, here's how the scenarios would play out:
Traditional radio logic:
That's Good News....Maybe (Score:2, Redundant)
I for one would love to see Google get into the tv advertising realm. Imagine having no commercials and just seeing a text ad in the lower right portion of your show. That would make legal issues for PVRs disappear overnight and consumers would be happy. Also, if anyone here rememebers the 'I'nteractive on DirecTv that would allow a consumer to press a button on the remote to get more information for a product. It would be like clicking on a google ad from a tv show :)
http://religiousfreaks.com/ [religiousfreaks.com]
Re:That's Good News....Maybe (Score:2)
So what do you propose they do with the other 8 minutes per half hour?
Re:That's Good News....Maybe (Score:3, Funny)
Re:That's Good News....Maybe (Score:2)
Re:That's Good News....Maybe (Score:1)
Of course, TV stations have been doing this for a few years to advertise upcoming shows. I've noticed this the most during "children's" programming.
As distracting as it is, I'd favor the transition if it meant fewer commercials, but I expect profit hungry networks will simply implement both models.
Re:That's Good News....Maybe (Score:1)
Re:That's Good News....Maybe (Score:2)
You should have stopped there.
Commercials are a thing of the past. They suck. Product placement is where its at, they just need to be less pushy with it. I'm sure everybody's seen those extended camera focus on a bag of Doritos or whatever, it takes away from the storyline.
Product placement works well, and pays well for athletic equipment. Nike pays people big bucks to wear their cloths. I have to buy mine.
Google.. how long before..... (Score:3, Interesting)
Re:Google.. how long before..... (Score:1)
podcasting... (Score:3, Interesting)
We noticed you like listening to NSYNC! (Score:4, Funny)
Magazine Adverts were a No-Go (Score:5, Informative)
Google tried getting into the glossy advertising business and didn't do so well. Magazines are more than willing to sell advert space to Google, but if you RTFA I linked, few of the advertisers are finding it to be worth their money.
I suspect it is a matter of finding the right format before this takes off. Maybe Google needs to group complementary products together, or simply put fewer small ads per page.
Re:Magazine Adverts were a No-Go (Score:2)
Re:Magazine Adverts were a No-Go (Score:2)
AdSense basically handles all of the targting for you. You just have to choose whatever keywords you want. For alot of people they choose moronic keywords, but get some hits - so they think its working.
The truth is, they get NO conversions. These people don't really know what their doing, but they do see a number, and the number is BIG!
Now, translate this behavior to a medium
Simulcasting live... (Score:2)
...you're listening to WGGL, from high atop the world's tallest structure, the Google Building in beautiful downtown Pocatello, Idaho... Coming up, Stevie Jobs and The Apple String Band with their rendition of "I Did It My Way", but first a word from our sponsor, Google!
Re:Simulcasting live... (Score:2)
Faux pas (was Re:Simulcasting live...) (Score:2)
Would be KGGL, not WGGL, since Idaho is to the left of the Mississippi on the map.
How could they do it better? (Score:2)
That makes ads cost-effective for the advertiser and useful for the consumer. What could Google do with radio that would work like that?
Seems like you'd be stuck going the same old "listener demographics" route. Anybody have a clue how this helps them?
Re:How could they do it better? (Score:2)
Perhaps Google's idea is to somehow allow more targetted selection from advertisers across a broader range of shows/locations? I d
It's happening (Score:1)
Re:It's happening (Score:2)
As compared to...?
See, all companies start by making something new. And Google is still innovative in that it wants targetted ads into the mainstream media. But they never were sisters of charity, i've read comments of people complaining about Google charging them extra for clicks they got (pay-per-click is EVIL!), and similar stuff. If you fantasized about Google being some geek heroes, perhaps you needed to research more.
Anyway, take a look at this, and se
Now the only thing on the radio dial will be (Score:3, Insightful)
PS anything that says 'targeted' immediately brings up privacy concerns.
Re:Now the only thing on the radio dial will be (Score:2)
The last time I listened to the radio, the bits that made me cringe the most was the horrible attempts at high concept production of many of the ads. That and the volume kick. If they could manage to get the radio ads to be as unobtrusive as the text ads that pop up on the search site, I'd be okay with it...
I have a credit card, I've already lost the privacy...
Google is taking over the world! (Score:1)
Package Deals. Not all AdSense ads are small biz (Score:5, Insightful)
Come on, folks, there's more to this than meets the eye. And don't forget the side-band stuff that handles traditional pager traffic, too. That can be used for all sorts of exotic ad-related things.
Re:Package Deals. Not all AdSense ads are small bi (Score:2)
Google's big competitive advantage is its knowledge of trends and use of the market as a pricing mechanism. AdWord prices should be close to the "perfect" price, since advertisers compete for the ad spots.
The "Google way" will improve the margins on radio too. Radio ad rates are mostly determined by ratings -- more eyeballs, more $$$. Realtime adsense-style auctions would render the problems with the ratings system irrelevant and allow advertisers to evaluate what spots are wor
Re:Package Deals. Not all AdSense ads are small bi (Score:2)
Notice these results are local to you. [google.com]
Re:Package Deals. Not all AdSense ads are small bi (Score:2)
I use "both" of them. They're really just two faces of the same engine, so the truth is I tend to conflate them when I talk, in general terms, about Google as an advertising vehicle. I should just say "Google Ads" and be done with it. The two different back ends (facing the advertiser, and facing the publisher) are just suited to their appropriate audiences - and I actually find it a little frustrating that Google gave them
Cue the music! (Score:2)
Google Radio! (Score:2)
Streaming straight for your listening pleasure:
* Goooooogle: Listen to live search terms entered by millions of users around the world. [18 years and above]
* Geeeemail: Your own personalized channel. In lieu of viewing ad-free pages in your mail account, listen to advertisements targetted at you based upon your recently received mail. [May contain adult and disturbing content. Not advised listening in front of your family, and fiancee.]
* Boooooks: Call Googl
Good fit for Google (Score:5, Informative)
There's no work for the station staff, and everyone makes a few extra bucks.
That's really not dissimilar to what Adsense does.
Re:Good fit for Google (Score:1)
dMark has already developed the tech to insert radio ads on the fly. Their web site claims that advertisers can "change entire campaigns on the fly," and the "station engineer installs the Scott Studios or Maestro Com Module" that delivers the ads.
All the ads are managed from a central repository, and fed to the stations as needed. This is just one step to instant delivery of highly targeted ads.
Oh noes! Google is teh ev1L! (Score:2)
Please enlighten me....
-thewldis
Next up, Google to buy Chocolate Factory (Score:1)
Share holders of Google are told to pay no mind to what we do with your money, and stop looking at the man behind that curtain over t
And we have a new king of all media (almost)!!! (Score:2)
Show me My World Google! (Score:2)
I savour every dewdrop of news I can find on Google aquisitions, and especially their bold plans to bring more contextually relevant advertisting to both my desktop, car stereo, and hopefully soon TV.
In just 10 years, if I'm lucky, I'll never have to think about a purchase again, as some 10 hectare cluster of Linux boxes buried under the Siberian tundra already has that stitched up. Perhaps we'll even have Meteorological Adsense! What do people buy on rainy days anyway? Why does your spleen hurt, just s
Google is scary (Score:2, Interesting)
In the course of my job I've spoken to quite a few small/medium business owners (all of whom had some online presence) in the last year or so and in the course of conversation quite have few have said that the biggest danger they see to their businesses is not the shop up the road, or even another website, it's Google.
Google has defacto a stranglehold on the internet. Not just advertising, but as by far the largest search engine it also controls the flow of traffic. They also have a history of taking puni
Re:Google is scary (Score:2)
I think that many of your points are interesting and in some cases true. But the statement that Microsoft has no ambitions outside PCs and Consoles ignores the history of Microsoft's iniatives like MSN. Although many of Microsoft's initiatives have not born fruit, they strong desire to expand in many areas outside of PCs and Consoles.
Re:Google is scary (Score:2)
Re:Google is scary (Score:2)
In the course of my job I've spoken to quite a few small/medium business owners (all of whom had some online presence) in the last year or so and in the course of conversation quite have few have said that the biggest danger they see to their businesses is not the shop up the road, or even another website, it's Google.
Disagree (and I'm a small business owner) ... Google is great for our business, as it brings us lots of traffic - usually traffic of people actually interested in what we're offering. Withou
Re:Google is scary (Score:2)
Furthermore, with their "loose cannon" approach the to wielding of their enormous power, they are no doubt drawing attention to themselves from those with a regulatory interest.
Google vs. Amazon... (Score:3, Insightful)
Before continuing I should note that I was one of those who (incorrectly) predicted Amazon.Com's demise. Amazon was (is?) carrying $2 billion in junk bond debt. I could not see how they could ever crawl out of that hole. Clearly I was wrong. Looking at Amazon now I see four things:
A direct retailer of books, electronics and other products.
A software company that sells its software and infrastructure to support other vendors retailing.
An internet infrastructure company that can sell time on its computer network "farms" and bandwidth pipes.
A huge "bricks and mortar" distribution chain for books and other products. This distribution chain can also be "rented" in part to support other vendors.
When you compare Amazon and Google, you can see how weak Google really is. While Amazon is very much a software company, Google is rapidly becoming nothing more than an advertising/media company. However, the problem that Google has is that their business model is easily subject to attack by competitors. While Amazon has a difficult to replicate business because of the cost of it's infrastructure (software, internet and bricks and mortar distribution) Google pretty much has one thing: it's search engine. The search engine is under attack by Amazon (with their A9 search engine) and Microsoft, among others. The only real defense Google has is slightly better results and force of habbit (I use Google because I'm used to using Google). Right now Google has a big pool of cash from the stock market. But they remain vulnerable to competitors and they have no other revinue stream to fall back on.
Google seems to be attempting to take their pool of cash and diversify deeper into media and advertising. Presumably the objective is to give them a revinue stream like Amazon's, that cannot be easily attacked. But this evolution takes Google farther from being the leading edge technology software company that many Googlistas still seem to think they are.
Having been very wrong about Amazon, I fear making any predictions about Google's future. But it is tempting to say that they are following an Internet model where everything happens faster. In their case the rise to bloated egos beleiving their own press ("we're all brilliant") to business decline as their revinue growth stagnates and their attempt at expansion gets mired in the difficulty of expanding into advertising and media.
Re:Google vs. Amazon... (Score:2)
Editing? (Score:2)
What it really looks like is our editors are not, you know editing the posts.
Big Arsed Wi-Fi (Score:3, Insightful)
Want to expand Adsense to podcasting? (Score:2)
When a large company wants to enter a new arena, there's a tendency for them to simply buy a smaller company already specialising in that area. (MS and that AV company, Google and Picasa etc.)
If you were Google, and felt it was time to move into advertising on podcasts and their ilk, I suspect you'd go and buy a company w
Google will change advertising (Score:2)
Joy! (Score:2)
Yeah, I have to pay to listen to my satellite radio, but the lack of advertising alone is worth it in my opinion.
Hmmm (Score:2)
Google already in TV (Score:2)
Google is already involved in television. They are involved in a cable channel called Current TV [current.tv], in that they have a show on that channel called Google Current [searchenginejournal.com].
The basic principle, as far as I can tell, for the show is that the stories are chosen not on what some news editor thinks is news, but instead the topics are chosen based on information about which Google queries are most popular. (Kind of based on Google Zeitgeist [google.com].)
For what it's worth, another notable feature of Current TV is that suppose
I'm starting to get the feeling... (Score:2)
I'm starting to get the uneasy feeling that Google may be the anti-christ.
Just a theory.
DO NOT ADJUST YOUR SET! (Score:2, Funny)
WE control the Vertical.
Room 101 awaits the facecriminals.
Re:Text Ads over Radio (Score:2)
Interesting idea, but I don't think that would work. The problems I see are:
1. Most of the time, the person in a car listening to the radio is also driving... so they will seldomly look at that little LED, *unless* they are changing channel or suddenly hear a song they don't recognize, but like.
2. Based o