The Google Bamboozle
Not that I blame Google for taking Radio up on its tendency to drop their pants...er... I mean PRICE for any advertiser willing to throw a nickel their way, but let's not fool ourselves into thinking the Google's model of buying inventory for pennies on the dollar is going to result in higher rate cards for Radio.
From this morning's Inside Radio:
Google says its entry into radio will raise advertising rates - not lower them.
Google Audio national director of sales Drew Hilles tells Inside Radio "Our main goal is to draw new advertisers to radio" and when they do that'll put pressure on inventory and result in higher rates for all buyers. The onetime CBS Radio exec says one way they help preserve a station's rate card integrity is by allowing buyers to pick markets - but not individual stations.
That's like WalMart saying their low prices are going to help drive traffic to the malls. In what world will an advertiser not realize that they can buy cheaper rates from Google than direct from the Radio station?
My advice to Radio is to simply not particpate in the program. Sell or auction off the inventory to your current collection of loyal advertisers -- Hell, BONUS it to them for being a great advertiser all these years -- or use it for self-promotion, to experiment with alternative programming, music testing, or to play iTune playlists from your listeners.
Do ANYTHING but sell it to the lowest bidder and let them determine the value of the most important thing you have to sell -- inventory.
PS: Just thought of a use for Google RadioAds -- let them buy all the inventory they want on your HD channels.
From this morning's Inside Radio:
Google says its entry into radio will raise advertising rates - not lower them.
Google Audio national director of sales Drew Hilles tells Inside Radio "Our main goal is to draw new advertisers to radio" and when they do that'll put pressure on inventory and result in higher rates for all buyers. The onetime CBS Radio exec says one way they help preserve a station's rate card integrity is by allowing buyers to pick markets - but not individual stations.
That's like WalMart saying their low prices are going to help drive traffic to the malls. In what world will an advertiser not realize that they can buy cheaper rates from Google than direct from the Radio station?
My advice to Radio is to simply not particpate in the program. Sell or auction off the inventory to your current collection of loyal advertisers -- Hell, BONUS it to them for being a great advertiser all these years -- or use it for self-promotion, to experiment with alternative programming, music testing, or to play iTune playlists from your listeners.
Do ANYTHING but sell it to the lowest bidder and let them determine the value of the most important thing you have to sell -- inventory.
PS: Just thought of a use for Google RadioAds -- let them buy all the inventory they want on your HD channels.
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