A while back I saw this article on how Google was going to be moving into selling radio advertising in much the way that they sell online text-based ads through their various programs. You know the ones I'm talking about--they show up not only on searches on google.com, but they appear on just about every blog, homepage, and forum on the internet.
The reason they are so popular is that they are the easiest way to start making money from your content online. Just sign up with Google, put a little block of code on your page, and watch the checks start to arrive. The ads are context sensitive so they always match what you're talking about on the web page so they seem more relevant. The site owner is happy because they're making money from Google. Google's happy making money from the advertiser. And the advertiser is happy because they are getting site visitors and paying per click instead of per impression, so it's easy to see the return on investment. (Setting aside the fears of click fraud for now).
Anyway, so I totally forgot about Google's move into radio until I was at NAB wandering around the audio hall, and BAM!, there was a Google sign. I was taken aback for a second trying to figure out why they were there, and then I saw the sign was really for "dMarc by Google." dMarc specializes in all aspects of radio advertising and also has Scott Studios and Maestro radio automation systems. Google's angle as far as I can tell is that stations using these systems can tag slots for advertising that they're willing to take directly from Google. Then, if there's an advertisement that will fit, some other material (say, a station promo) can be preempted for paid material automatically.
This is where the fascinating bit comes in. There is a core tension for a station--they won't get as much for an ad through Google than they will working with an advertiser directly since there's another party involved, but they want to fill as many of their open slots with paid advertising as possible and if the slot wasn't going to be paid for anyway...
The documentation I picked up from Google at NAB talks about how there is "no cannibalizing" and "no sacrificing of margins" because they maintain "complete station anonymity" and "rate card confidentiality" so that "advertisers never know what station their buying, on the market and overall listener demographic." Hey, that sounds great. Almost like free money!
But now the interesting part... if I'm Coke do I really care which station my ad runs on if I know I'm hitting 18-24 year olds in Detroit? Or 24-40 year olds in Dallas? At that point, what does going directly to the stations get me other than a lot more work? It seems to me I don't, which would mean that Google could have as large an impact on radio advertising as they've had on internet advertising. It only takes one station in a market that's having a hard time filling its advertising slots to start the trend and they could end up with major advertisers they may not have secured otherwise.
Of course, I'm a long way from business management in radio and this is basically public stream of consciousness so I have little doubt I'm missing something here! Drop a comment and let me know if this is happening in your area, or if your station has tried working with this system and how it's gone. Or maybe whether you'll do this kind of ad buy only over your dead body. I'm fascinated by the Google model so I'm curious to see how it plays out in another arena. Thoughts?