It seems that Google’s futile meddling in print advertising hasn’t perturbed their desire to expand AdWords into areas outside of the Internet. Now Google appears set to make a run at the radio advertising market.
Back in the middle of January Google acquired dMarc Broadcasting, Inc., a “digital solutions provider for the radio broadcast industry” that allowed advertisers to create and target radio ads through its automated platform. The deal cost Google $102 million up front with an additional $1.14 billion to be paid over the next three years if certain revenue and performance targets are met.
When the acquisition was made known, Google had indicated that dMarc would be integrated into their AdWords unit, foreshadowing a foray into the radio advertisement business.
“Google is committed to exploring new ways to extend targeted, measurable advertising to other forms of media,” said vice president of ad sales at Google, Tim Armstrong back in January.
Google CEO Eric Schmidt recently shared his desire to expand AdWords into the radio advertisement business at a luncheon with publishing executives in New York City. Schmidt envisions GPS location-based provision of targeted, personalized ads through compatible radios installed in cars. He expects this vision to become a reality within the next two years.
Neither of the parties involved has revealed the details of how this radio ad delivery service would work, though there are inherent issues with this GPS-focused idea.
First, only a small number of cars being driven today have a GPS-enabled radio already installed in their automobile. Though newer cars are being offered with this feature, the vast majority of older cars do not have this capability, and installing a GPS system is costly enough to drive away most people considering the option.
Second, it is a well known fact that GPS technology is far from perfect. The position calculated by a GPS receiver relies on three measurements: the current time, the position of the satellite, and the time delay for the signal, the latter two being the most crucial.
There are many obstacles to obtaining an accurate GPS-location reading, and an error of a few feet could mean that a driver could hear an ad for a coffee shop that was just passed at the last intersection. This renders the ad and all the expensive technology it required irrelevant.
Google certainly has the funds to realize this, and with dMarc’s radio know-how and the power of AdWords there is little doubt that this possibility will be achieved within the next few years. The only looming question is how effective it will really be, and how many advertisers and drivers will want to play the roles of guinea pigs in Google’s mad experiment.
Sources:
http://www.webpronews.com/insiderreports/marketinginsider/
wpn-50-20060622GoogleLookingintoRadioAdWords.html
http://blogs.zdnet.com/micro-markets/index.php?p=131
http://www.searchnewz.com/blog/talk/sn-6-20060626Google
TalkingAboutRadioAdvertisements.html
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