Google expanding into radio

Why is Google pushing into radio? Why not? It's an advertising company, after all. And, radio is not dead. It'll be consumed on the Web eventually, and ad dollars will support it. For now, advertisers still like radio - and they really like local. Marketers are on track to place about $15.6 billion into local radio vs. $3.4 billion in national radio in 2005, according to the figures from the Radio Advertising Bureau. See RAB site

Google's purchase of dMarc Technologies, a company that automates the process between advertisers and radio stations, will at least give the search engine the technology and relationships with radio stations. Ryan Steelberg, president of dMarc Technologies, told me that his company has 100 employees and several thousand radio-station customers. There are about 13,000 radio stations across the country. Oh, and Google paid $102 million in cash, with a maximum amount of $1.136 billion over the next three years. Is that expensive? It depends on the financials. Steelberg won't disclose them, nor would he say how much venture financing the company took since its inception in 2002.

Speaking of radio, check out Pandora.

Comments

[remyarcher]

The enormous think tank at Googlplex - I firmly believe they thought out their gameplan WELL in advance. I'm sure by now people know the Goggle story. I couldn't imagine thousands of the WORLD'S brightest engineers NOT succeeded at what they set out to do.
With that being said - from what I understand of Googs, these guys don't make moves for short-term monetary results; all their decisions are based on cold, hard logic for success in the long run. I believe what Googs is doing is securing media outlets that are definitely relevant to their business.
I'll place my money on Googs enormous pool of brainpower.

[Dok]

GOOG no doubt has "disruptive" technology. I agree with you that GOOG has the best and brightest. Please don't confuse the company with the stock valuation. There is a big difference. If you would like to learn more about GOOG earnings power and how it compares to small cap ARD please visit http://www.doktorstocks.blogspot.com. The comparison was blogged on Wednesday, January 18, 2006. You may be surprised. You'll also learn something. The blog entry walks you through the steps of an investment decision between GOOG or ARD. The entry has many charts and visuals to enhance the point.

[Dok]

I just wanted to mention that I'm sure Bambi would agree with my analysis on the blog. I concur with her findings that GOOG is indeed priced for perfection. I want to disclose that I am neither long nor short GOOG. I am long on ARD shares.

Keep up the good work Bambi.

Dok