Google-izing radio advertising: Day Two

More on Google’s foray into the world of radio advertising from RAIN’s Kurt Hanson, including quotes and links to The New York Times and the WSJ Online.

“The key to it is that Google is potentiallty bringing 400,000 new advertisers (their AdWords clients) to the radio medium. These new advertisers will (A) fill up unsold inventory and (B) eventually add increased demand for avails. Increased demand, of course, will inevitably drive up prices. That’s how supply-and-demand works.”

I’m still waiting for someone to explain what –if anything– that’s going to mean for barter arrangments with radio stations. Are we looking at a future where every avail can be sold?

Apparantly the dMarc software can automatically send advertisements right into radio station’s traffic ystems, bypassing the largely manual process currently used in the radio industry. Anybody have any first-hand experience with dMarc? Know a station that uses it? I’d love to know more about it.

Google buys dMarc Broadcasting

As a barter radio network, part of our pitch to prospective affiliates has been: Instead of letting your unsold commercial inventory “go to waste,” give them to us in exchange for some top-notch news and sports to enhance your station’s programming. Win-win.

So Google buys dMarc Brodcasting, a radio advertising firm whose technology allows national advertisers to buy unsold station inventory, and automatically inserts those commercials into the stations’ unsold slots.

In the online world, Google AdWords enables advertisers to find the lowest-possible rates publishers will take, and helps publishers find the highest-paying spots. This technology could greatly enhance the process of national ad buys — making it more efficient on both ends. [Analysis by RAIN]

Big Question: Will barter networks like ours someday (soon) have to compete for this inventory? Will station managers put his unsold avails in a big Google basket rather than barter them for programming? That might not be the question at all. I don’t pretend to understand what’s happening here. And there has always been rep outfits that promised to sell a station’s unsold avails, but most stations wisely steered clear of hese guys. Be interesting to see where Google heads with this technology.

Google disrupting advertising business?

Google is also preparing to disrupt the advertising business itself, by replacing creative salesmanship with cold number-crunching. Its premise so far is that advertising is most effective when seen only by people who are interested in what’s for sale, based on what they are searching for or reading about on the Web. Because Google’s ad-buying clients pay for ads only when users click on them, they can precisely measure their effectiveness – and are willing to pay more for ads that really sell their products.

— From an article in the NY Times by Saul Hansell

Is the advertising pie big enough?

I’ve wondered about this but not as thoughtfully as Ben Compaine, who posts on the Rebuilding Media blog:

Can the media survive on advertising? Lots of folks are counting on it. Broadcasters have always had this single revenue stream. Daily newspapers get about 80% of revenue from advertising and the hot print properties, such as the give-away Metro dailies, depend about 100% on advertising. Now much of the Web is counting on advertising: Google, Yahoo! and increasingly AOL to name just a few of the biggies.

Either the pie gets bigger or somebody gets a smaller slice.

Google Earth

Just when I think the Web and computers can’t get any cooler, something like Google Earth comes along. WSJ’s Walt Mossberg wonders if it has any practical benefits but admits it’s damned cool.

“The program lets you view satellite and aerial photos of pretty much any spot on the planet. In big metropolitan areas in the U.S., Canada and Western Europe, you can locate, and zoom in on, individual buildings and houses, and see cars and trees. … The program rapidly fetches the images from the Internet and visually “flies” you from place to place around the globe. The process is so fluid it feels like a Hollywood stunt.”

The image above shows where I’m sitting.

Ad dollars moving online

“This year the combined advertising revenues of Google and Yahoo! will rival the combined prime-time ad revenues of Americas three big television networks, ABC, CBS and NBC, predicts Advertising Age. It will, says the trade magazine, represent a watershed moment in the evolution of the internet as an advertising medium. A 30-second prime-time TV ad was once considered the most effectiveand the most expensiveform of advertising. But that was before the internet got going.”

— Economist.com on an article in this week’s Advertising Age. More of the same at Yahoo!

Google the weather

Google has added a 4-day weather forecast to its search offering. Simply type in: weather, city, state. Link to example search for Destin, FL. I find this just insanely handy. I know I could click over to Weather.com but it would be several more clicks to the same result. I do the same thing when I need a spelling. Just google it and there’s the correct spelling.