Google Buys Into Radio

  |  January 17, 2006   |  Comments

The search giant acquired dMarc Broadcasting, with plans to integrate its automated radio advertising platform with AdWords.

In a move that will allow Google to expand its AdWords platform to radio, the search giant acquired Newport Beach, Calif.-based dMarc Broadcasting.

dMarc's automated advertising platform connects advertisers directly to radio stations, handling the sales, scheduling, delivery and reporting processes. Its technology performs much the same auction-based sales, ad-serving, payment and reporting functions of AdWords, but for radio ads instead of online ads.

Google announced plans to integrate dMarc's platform into AdWords, adding another distribution channel for advertisers. In August, Google began testing a program to resell print ads to its AdWords advertisers in magazines, and began placing client ads in newspapers last month.

"Google is committed to exploring new ways to extend targeted, measurable advertising to other forms of media," Tim Armstrong, Google's VP of ad sales, said in a statement. "We anticipate that this acquisition will bring new ad dollars and accountability to radio by combining Google's expansive network of advertisers with dMarc's talented team and innovative radio advertising technology."

Google will pay $102 million in cash up front, with performance-based payments -- based on product integration, net revenue and advertising inventory targets -- potentially reaching $1.136 billion over the next three years.

Most of that price is going toward the relationships and expertise that dMarc has in this area, said Greg Sterling, director of Kelsey Group's interactive local media program. "dMarc has the inventory and Google has the platform -- or will bring the efficiencies of its platform to dMarc's network. That's what's suggested here," Sterling said.

dMarc also has invested in technology that improves the measurement and accountability of radio ads. Whether that technology will be useful to Google remains to be seen, but it is apparent that both companies are approaching the challenge with similar philosophies and goals.

For example, dMarc allows advertisers to target an ad campaign across multiple stations in its network by market, station format, demographic and daypart. They can manage the campaign from a self-service interface, make changes on the fly, and assemble an assortment of reports and ROI data.

The company also has roots in Internet advertising, having founded the AdForce ad-serving and 2CAN Media networks, both of which were acquired by CMGi and added to its Engage unit.

ClickZ Live Toronto Twitter Canada MD Kirstine Stewart to Keynote Toronto
ClickZ Live Toronto (May 14-16) is a new event addressing the rapidly changing landscape that digital marketers face. The agenda focuses on customer engagement and attaining maximum ROI through online marketing efforts across paid, owned & earned media. Register now and save!

ABOUT THE AUTHOR

Kevin Newcomb

Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.

Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.

With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

ion Interactive Marketing Apps for Landing Pages White Paper

Marketing Apps for Landing Pages White Paper
Marketing apps can elevate a formulaic landing page into a highly interactive user experience. Learn how to turn your static content into exciting marketing apps.

eMarketer: Redefining Mobile-Only Users: Millions Selectively Avoid the Desktop

Redefining 'Mobile-Only' Users: Millions Selectively Avoid the Desktop
A new breed of selective mobile-only consumers has emerged. What are the demos of these users and how and where can marketers reach them?

Jobs

    • Contact Center Professional
      Contact Center Professional (TCC: The Contact Center) - Hunt ValleyLooking to join a workforce that prides themselves on being routine and keeping...
    • Recruitment and Team Building Ambassador
      Recruitment and Team Building Ambassador (Agora Inc.) - BaltimoreAgora, www.agora-inc.com, continues to expand! In order to meet the needs of our...
    • Design and Publishing Specialist
      Design and Publishing Specialist (Bonner and Partners) - BaltimoreIf you’re a hungry self-starter, creative, organized and have an extreme...