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Google Audio Ads (AdSense for Audio) – details emerge

Posted on Saturday, April 28th, 2007 at 12:14pm. #

What's Google doing with radio? - no expense spared on this stand!

I posted, a little while ago, a short and ill-considered piece titled Google Audio Ads are coming to eat you up. On thinking further, and reading further, I’m not entirely sure that’s the case.

In that post, I linked to lots of screenshots of the Google Audio Ads process in action. (There are also some presentations about Google Audio Ads online). A media purchaser gets almost the same experience as they would buying Google AdWords. Interestingly, they also get no way of purchasing stations directly, thereby leaving stations free to continue to sell ads themselves.

Further, thanks to Jonathan Marks, I’ve been sent a job specification for an Account Manager at Google Audio Ads – which makes interesting reading by itself.

The lucky candidate(s) will be charged with “Selling Google Automation products”, not only AdSense for Audio. This appears to confirm a strong rumour in the industry that Google has developed its own playout system – or, at the very least, has used its purchase of dMarc to also leverage dMarc’s own playout system called Maestro. Is it possible that this playout system may be free for use if Google gets a certain %age of airtime? Does this dramatically change the business of running a small commercial radio station? Will it have APIs and other web services to enable better hook-ins to the playout system itself, therefore enabling better additional metadata and visual elements?

The other interesting element to the job ad is a requirement of “Knowledge of emerging media technologies (Podcasting, Online Streaming media, Digital Radio Broadcasting, etc.)”. This is interesting since it suggests that AdSense for Audio may well also be a solution for podcasters, not just terrestrial radio stations. And why are Google interested in ‘Digital Radio Broadcasting’?

It’s clear that Google AdSense for Audio is going to dramatically lower the costs of radio advertising. If you’re a creative producer, this would appear to massively increase your potential business – far from being ‘afraid’, as I said originally, I think you should be hugely excited. More businesses will want to make radio commercials as a direct result. You should be gearing up now to cope with the additional business.

If you’re a radio station, this would also appear to massively increase your client numbers, particularly if you’re working for a local station. There is real benefit in attracting more advertisers to radio, at lower cost. This is great news.

The only worry is if you’re currently a media sales house. I would see Google AdSense for Audio as cutting out the middleman – and that’s you. Why would you go to a media sales house, who deal with a number of radio stations (and thus have little knowledge of those stations), when you can get almost the same experience from Google AdSense – indeed, probably a better experience given the quality of Google’s planning tools?

The more that emerges from the Google Audio Ads stable, the more I’m convinced it may well single-handedly save smaller commercial radio stations.

Let’s think radically. Anyone can sell spots on your radio station. With the latest RAJAR (or Arbitron) figures, anyone can plan these ads, too. However, only your radio station knows how to sell sponsorship, and how to sell out-of-break promotions, because only people who understand the product can sell it. So if Google AdSense for Audio takes off the way I predict it will, I believe that local radio stations could radically change their business. First, remove your spot-sales team completely. This is a large cost to most local radio stations, and with the advent of Google AdSense for Audio, you simply don’t need them. Cut the amount of spots on the station, too – use this as a way to improve the audio experience, not to grow profit. Double the size of your sponsorship/promotions department – this better-sounding and more relevant commercial content will be the way of the future. Watch your audiences grow, because of the smaller amount of instrusive commercials and the local connections you’ll be making by having your DJs talk about your local businesses out of the break, rather than in it. It’s a bright future indeed.

The commercial radio industry in the UK has a track-record of doing the wrong thing, more often than not: GCap and Emap removed all the localness from their output in the late 1990s and are now wondering why listeners flocked away from local commercial radio and towards national services in the 2000s, for example. The next twelve months will show whether those in charge of commercial radio ‘get it’. It may be a crucial time.

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Full disclosure: My current employer is a national commercial radio station, who used Maestro as a playout system for a while. Google AdSense funds my sandpit website.

7 comments

Dean
commenting at April 29th, 2007 at 6:20am

“The more that emerges from the Google Audio Ads stable, the more I’m convinced it may well single-handedly save smaller commercial radio stations.” – that was my take on it. Also, that the current blurring of boundaries between radio programmes and podcast programmes will increase as the radio shakeout continues, and the best of the individual podcasters get a stab at making some real money.

Alex Bellinger
commenting at April 29th, 2007 at 10:19pm

I admit to knowing nothing about radio ad sales. In terms of independent podcasting, however, I suspect an adsense style pricing model will establish itself with audio ads. In which case we’re back to chasing the biggest audience we can muster and podcast advertising will be a commodity market. I hope I’m wrong, but my guess is this will significantly diminish the ability of individual podcasters to make any significant money.

Tony Moorey
commenting at April 30th, 2007 at 10:23am

Google’s foray into audio ads raises many interesting points and I’d agree that the opportunities seem greatest for smaller stations. However, larger outfits may also see benefits. In the UK at least, commercial radio (local or national) is an unglamorous bit player in the advertising field. Conversely, ad agencies are embracing digital with often great enthusiasm – even if they aren’t too sure what to do with it yet. Perhaps the merging of digital and audio could re-energise the business of radio in a way that the industry itself has been unable to do.

I would however question your suggestion that the future for small stations is sponsorship and promotions. While this is a rich vein to mine, I have seen which demonstrated that while listeners understand the need for ads and tolerate them duly, they view sponsored and client-scripted programming with much more suspicion and less tolerance.

Jimmy Buckland
commenting at May 3rd, 2007 at 8:44am

Interesting to see you’re so optimistic James. How long do you think before this might be realised?

Tony
commenting at October 23rd, 2008 at 5:12pm

Google’s Audio Ad’s is a great platform for some. My production house & agency, is one of the top 5 “Radio Production Specialists” on Googles Audio Ad marketplace, we’ve had the pleasure of helping hundreds of small businesses who could otherwise not afford radio advertising, gain the exposure they needed thanks to this new platform of advertising. Will it change the world of advertising? No – There has always been remnant buying services out there, which is what Google’s system is on a much more organized data base level. BUT – It does allow a whole new base of clientele explore a medium otherwise out of reach to them, and gives many of them positive ROI’s and a positive experience in radio.

Tony Brueski
http://www.bestradiocommercials.com

If anyone has any detailed questoins about the system, or how it works feel free to visit my site and give me a call. I’ve been working with the Google system for a few years now and would be happy to answer your questions based on my experiences.

Tony
commenting at December 18th, 2008 at 3:04am

Its been several months since my last comment here… Googles raido ad system has in my opinion helped alot of small businesses maintain an advertising presense in alot of communities where they other wise could not afford it. I have not seen much of a slowdown in advertisers over the last few months since the economic situation kicked into high gear.

Tony
http://www.bestradiocommercials.com

jamie andrei
commenting at March 8th, 2009 at 7:42am

I love this post, the radio model is new to me, a logical step though.

Thinking broader, Google will be looking to leverage the Adwords model everywhere.

They are doing it for TV as well http://www.google.com/adwords/tvads/demo.html .

Google stock exchange?

Adwords everywhere!

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