Saturday, December 09, 2006

Google Invades The Airwaves

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WebProNews - Google Invades The Airwaves
December 09, 2006
http://www.WebProNews.com
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Google Invades The Airwaves
Joe Lewis Staff Writer
Google announced in a corporate blog that it has officially begun beta testing its Audio Ads marketing platform. Earlier this year, the company acquired dMarc Broadcasting as part of its plans to crossover into radio advertising.
Google has made waves in recent months in its efforts to expand beyond the online marketplace into traditional advertising platforms such as print and radio. The strategy, bold to be sure, has been met with both praise and skepticism from industry analysts and prominent bloggers alike.
At the Inside Adwords Blog, a member of the Audio Ads team gives a little more elaboration on the company's vision for the project:
"Over the last year, we've been partnering with both terrestrial and satellite radio stations across the U.S. so that our advertisers have many options for broadcasting their ads -- whether it's a Country station in Tyler, Texas or an Adult Contemporary station in New York City."
"Currently, there are hundreds of stations to choose from and we hope to grow the list over the coming year. Our broadcast partners are looking forward to making their ad inventories available to thousands of new advertisers, especially since they aren't easily accessible today."
So how will the beta test work? The company offers further insight:
"We're giving a select group of AdWords advertisers early access to Audio Ads, so that we can gather feedback that will influence product features and direction. By testing with a small group, we can see which features are most-used, which are least-used, and which could benefit from redesign. Early testers help Google to create the best possible product before releasing it to a larger group."
Will the venture pay off for Google? Sure, the company has a stranglehold on search marketing, but is it possible that it could be extending its reach a little too far here?
Hugo Guzman at Search Engine News gives his take:
"Google's grand ambition is to take over advertising on all facets of mainstream media, which includes online (which they already dominate), print, television, and radio. However, an undertaking of this magnitude will likely take years to accomplish, and that's assuming that it ever comes to fruition."
"In fact, some pundits believe that Google has bitten off more than it can chew by attempting to transition their AdWords platform to radio, and that their progressive approach to advertising will never catch on because it flies in the face of the establishment over at Madison Avenue. They also point to Google's unmitigated failure (three times over and working on a fourth) in penetrating the print market."
Another blogger questions Google's motives for taking up such a
challenge:
"I absolutely believe that radio is a better fit for them than print (more tech-heavy method of delivery, longer shelf life, stickier than print) but I'm still having a hard time figuring out why Google would even want to expand into traditional media in the first place. Is it a sincere desire to positively affect all forms of media or is it an arrogance that thinks they'll change the face of everything from radio advertising to the way you buy chicken?
"Let's see, you're a white female in her mid thirties, registered Democrat, married with 2 kids, a dog and a minivan. You want white meat only, right?"
CNet's Elinor Mills, however, feels that the proverbial iron is just hot enough for Google to effectively strike into the world of radio:
"If Google radio ads actually catch on, they could have significant implications for the way radio ads are sold. That could be a good thing for an industry that saw April revenues, for example, drop
5 percent from a year ago, according to the Radio Advertising Bureau trade association."
While opinions remain divided about Google Audio Ads, the fact remains that with nearly $11 billion in liquidity (straight cash, homey), the company can afford to take a gamble like this. It's your classic risk/reward scenario, and the potential reward could prove to be quite fruitful for both Google and its advertising partners.
One particular hurdle the company will have to address is measuring traffic. Clicks, page views, and unique visitors all offer a particularly reasonable method of quantification when it comes to tracking advertising metrics.
The question remains, however, what analytical method Google will choose to implement for radio, as the aforementioned measurements are unique to the Internet.
So as Google takes to the airwaves, it seems we are left with more questions than answers about how Audio Ads will take shape.

By Joe Lewis, Staff Writer for WebProNews

Reposted by:
-- Zach Hoffman
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