Google Scraps Costly Radio Ads Venture
Google has ditched its radio advertising business, which certainly causes one to wonder how long the Web giant will stick with its plans to be a major player in television advertising.
Despite its $102 million acquisition of radio advertising thing dMarc, Google never really got a strong foothold in radio advertising, reports the NY Times. Clear Channel signed on to let Google sell about 5% of its inventory, but reporter Miguel Helft says Google never really won over skeptical radio broadcasters.
Their TV counterparts are skeptical as well, though Google TV Ads skipper Mike Steib has taken considerable pains to present himself as an ally. Google appears to be committed to TV Ads, says the Times, even if the television world isn’t exactly embracing Google’s entry into their space.
While Google has had middling success so far in TV advertising, analysts say, the company is not likely to give up on the effort quickly, because the market is so large and the initiative could help YouTube, Google’s video site. Google is selling a relatively limited number of ads on the Dish Network, some cable networks owned by NBC Universal and a small cable provider in Northern California.
But Google has not reached deals with any of the major cable companies.
“Clearly the TV industry isn’t queuing up to be helpful,” said Jeffrey Lindsay, an analyst with Sanford C. Bernstein & Company.