The Biz

Google Audio Ads Grinds to a Halt

Google Inc.'s budding radio advertisement business, known as Google Audio, appears to have ground to a halt. According to Market Watch, Google doesn't have access to enough radio airtime for would-be advertisers to thoroughly test out the initiative.

Market Watch Newswire
But help may be on the way for this supposed problem. Several news reports Monday claimed that Google is deep into negotiations to buy a large swath of airtime from CBS Radio.

By doing so, Google could stave off the domino-like effect of the airtime shortage, which may mean delays introducing Google Audio to a much broader audience, RBC Capital Markets analyst Jordan Rohan said Monday.

Until Google can strike a deal with CBS, or some other radio giant, "there will be no significant impact until mid-2007" on Google's bottom line, or the radio industry in general, Rohan said in his research note.

"We believe a critical mass of advertisers is interested in testing the platform," Rohan said, based on his interviews with his own sources. "However, there is simply not enough radio inventory in the Google Audio system (yet) to enable buyers to run campaigns."

A Google spokesman, in an email, said "participating advertisers have access to a wide range of inventory including more than 700 stations spanning more than 200 metro areas. We will continue to make available more stations and inventory to an increasing number of advertisers next year."

Google has hand-selected 20 companies to being testing the capabilities of its newly-integrated technology from dMarc Broadcasting, which has invented an automated way of creating a radio ad and getting it aired on radio stations.

Source: MarketWatch

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