Google's Radio Advertising Inventory Problem

MarketWatch reported on the 18th that Google was running into some issues related to ad inventory with their new radio offering:

Google Inc.'s nascent radio advertisement business, known as Google Audio, has run into an unexpected snag: it seems Google doesn't have access to enough radio airtime for would-be advertisers to thoroughly test out the initiative, an analyst said Monday.

Unexpected? Apparently, they didn't they read my November 8th post regarding a potential investment by Google in Clear Channel where I wrote:

If Google launched a radio ad buying module for AdWords their biggest short-term problem would be a lack of Google sized ad inventory.

The predicted investment by Google in Clear Channel didn't happen, so the inventory problem hasn't been solved.

Google's size does have some limitations. I don't think Google will have any problem attractive advertisers to a radio advertising platform. In fact, it will likely open up radio advertising to a new audience of advertisers who have never use radio advertising in the past due to the high minimum ad buys (compared to online advertising). Google has two advertiser audiences to satisfy: established radio advertisers who won't switch to Google's platform if they can't make large ad buys and the hundreds of thousands of AdWords advertisers who are looking or additional advertising opportunities beyond online ads.

How will Google get the inventory?

Comments

1. Posted by: Frank Pournelle on January 13, 2009 12:45 AM:

Radio stations can fill their unsold radio inventory through per inquiry advertising or they can sell time through Google. Two problems: The main problem is that listenership on radio is "spotty" at best. Unlike online advertising, there's no guarantee how many folks are listening to a radio station or if they're interested in the advertising. Online, they are generally interested in a subject matter because they looked it up. Offline radio inventory is a push or demand driver. Google is in the business of one-to-one communication instead. I think Google over-reached their mandate in getting into radio.

Required fields marked with: *
Name*:

Email Address*:

URL:
Remember personal info?

Comments*:

HTML Tags you can use in your posts:
<b>Bold</b> = Bold
<i>Italicized</i> = Italicized
<a href="http://www.othersite.com">Link to Other Site</a> = Link to Other Site

Please keep comments on-topic. Contact authors or other commenters
directly for off-topic conversations.

Notify me of future comments via e-mail

Technology Evangelist Digest - Free Newsletter

Sign up for the free Technology Evangelist Digest to receive daily updates, editorials, and practical advice on emerging technology trends in hardware, software, webware, marketing and beyond.

Technology Evangelist Digest will keep you up to date on the technology trends that will help make you more productive and efficient both in business and your personal life.

Let's face it: If you made it to this line, you must have found something valuable on this page, right? Think about how cool it would be to have something free and interesting to read every day from Technology Evangelist by signing up today.

1. Fill in your email below,
2. Then click on the confirmation email you receive.
3. That's it. Your first Technology Evangelist Digest will arrive within 24 hours.