Google’s Radio Ad Failure
February 15, 2009
If you are interested in Google’s failures, you will want to take a quick look at “BIA/Kelsey Commentary: Fratrik on Google’s Departure from Radio.” The is a “free” consultant write up, so keep that in mind where you read the article here. The write up provides a mini analysis of how Google fumbled the ball and withdrew like Jackie Smith, former Dallas Cowboys’ received, famous for dropping a pass that would have won the big one. Google is a digital Jackie Smith when it comes to radio advertising. The most interesting comment in the write up was:
“Radio operators were never comfortable getting in bed with Google,” he said. “Among other things, the Google model asked for information that broadcasters thought was confidential. It also required the purchase of equipment. I heard the pitch when it was first launched, and I couldn’t see how this would be successful.” Why didn’t Google’s entry into the radio advertising market work out? “The initial read three years ago was somewhat positive – they were going to use their core strengths in Internet scalability and transactional efficiencies to attract buyers and sell inventory that local stations were unable to sell. But, even with their model and their reach to many more potential advertisers, they could not sell enough to make it a profitable business line.”
The notion of “comfort” is important. When Googzilla is not comfortable with its potential customers’ comfort with Googzilla, Googzilla says, “Adios.” Kelsey Group write up points out that some broadcasters are embracing digital ad technologies. That’s encouraging to some but not me.
Here’s why.
Traditional broadcasting companies are in the same boat as dead tree publishers. The demographics and the costs of their business model are like a current rushing down the Green River. If you go with the flow, you get carried along. If you try to paddle against the current, you fail, walk, or dock. Googzilla did not just exist; Googzilla wrote off an entire business sector as unable to “get it.” Trouble looms for traditional broadcasters I fear. The Sirius XM financial challenge is a harbinger. Kelsey Group’s article omitted this nuance which surprised me.
Stephen Arnold, February 15, 2009
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