Clear Channel, Google Announce Ad Sales Pact
April 16, 2007 at 4:43 PM (PT)
CLEAR CHANNEL RADIO and GOOGLE INC. today announced a multi-year agreement that enables GOOGLE to sell a guaranteed portion of 30-second advertising inventory available on more than 675 of CLEAR CHANNEL's AM and FM stations. Specific financial terms are not being disclosed.
Under the agreement, GOOGLE Audio Ads advertisers will have national distribution, enabling them to reach specific audiences, at specific times, in targeted geographies. For CLEAR CHANNEL, this agreement opens up an additional sales channel and provides supplemental revenue by making CLEAR CHANNEL inventory available to advertisers who previously had not used radio.
Clear Channel Radio gets access to an entirely new group of advertisers within a new and complementary sales channel, and Google adds another option for its existing customers.
"This is a true win-win," said CLEAR CHANNEL CEO JOHN HOGAN. "CLEAR CHANNEL RADIO gets access to an entirely new group of advertisers within a new and complementary sales channel, and GOOGLE adds another option for its existing customers. GOOGLE has proven its ability to gain premiums for advertising inventory and that fits perfectly into our broader strategy of building value for advertisers while increasing our overall revenue yield. We're committed to working with the best-in-class and GOOGLE has a real economic incentive to produce meaningfully higher CPMs."
"CLEAR CHANNEL is the market leader in delivering radio value to consumers and advertisers and has built an innovative platform to manage its on-air ad inventory," said GOOGLE CEO ERIC SCHMIDT. "We look forward to working with CLEAR CHANNEL RADIO by providing a unique set of advertisers and a system that will increase the effectiveness and measurability of connecting advertisers with radio listeners."
CLEAR CHANNEL RADIO's national and local sales forces will continue to focus on the company's most lucrative advertiser relationships, and on the many advertisers who seek specialized advertising packages and concepts. GOOGLE will focus primarily on advertisers who currently run ads online but do not run ads on radio.
For CLEAR CHANNEL, the move is part of a larger initiative to differentiate its on-air ad inventory. The company created a number of special positions (such as first-in-pod and islands), new and innovative spot types (adlets and blinks), unparalleled creative resources (the Creative Services Group), and fresh combinations on-/off-air/online packages. These efforts have produced many new advertiser alternatives and steady gains in revenue yield-per-minute. Using its Viero System, the company already enables sales managers and sellers to dynamically evaluate and price inventory. CLEAR CHANNEL RADIO and GOOGLE today separately announced Viero Systems full AdSense for Audio Compatibility.
This agreement complements an existing online advertising partnership in which GOOGLE provides text ads to CLEAR CHANNEL’s radio-station websites through the company's Online Music & Radio Unit.
Later in the day, SCHMIDT, in an interview with former NBC NEWS reporter/anchor JOHN SEIGENTHALER, told an audience at NAB2007 that GOOGLE "doesn't replace radio or television" but "if our technology can bring more advertisers to radio and television, that's a good thing." He called the CLEAR CHANNEL deal, with its integration of the companies' computerized inventory systems, "such a defining deal for us." SCHMIDT disputed the idea that GOOGLE might be taking ad revenues previously spoken for directy by radio and TV, asserting that "advertising as an industry is growing... The money is there."
On the pending VIACOM copyright lawsuit over VIACOM clips on YOUTUBE, SCHMIDT quipped, "You're either doing a business deal with them or being sued by them," and promised that the technology to more quickly and automatically remove copyrighted material is coming within months.
Sounding a theme that the Internet is "going to happen," SCHMIDT said, "I think the people who use litigation to prevent change are betting against the Internet... Don't bet against the Internet. It's going to happen." He added that "the new model will have to address user empowerment- it's a fundamental shift."