SWMX Looks At Clear Channel/Google Deal As Great News
April 16, 2007 at 6:56 AM (PT)
On the heels of the just-announced CLEAR CHANNEL and GOOGLE sales pact, SWMX COO BILL FIGENSHU points out in a memo to departments heads obtained by ALL ACCESS that the deal is a plus for his company and radio in general, citing the following points:
- The age of electronic revenue generation for radio is here. GOOGLE has invested significant dollars into the space. Radio is a dynamic medium that is used by over 250 million Americans every day. GOOGLE's worldwide name will lend legitimacy to the medium. A good thing!
- 90% of SWMX revenue for radio stations is new revenue. If GOOGLE brings more money into radio, it's good for radio.
- This is not an either/or deal! Many SWMX stations use many different revenue platforms. Networks, auctions, and national exchanges are all part of the station revenue mix. Money knows no exclusive format.
- The deal involves 675 CC radio stations. Add the current GOOGLE stations and the total number of stations on the GOOGLE network is 1,475. SWMX has currently over 1,800 stations on our electronic network. Many are among the biggest broadcasters in the USA. Including CLEAR CHANNEL stations. We cover 97% of the USA with over 12 million daily average quarter-hour listeners.
FIGENSHU does, however, point out some potential downsides:
- The deal is for 30-second spots only. SWMX allows stations at receive revenue at any spot length. Whether the advertiser wants a :10, :30, :60, or 1:20, SWMX can deliver any length the client wants. SWMX can also deliver long form programming of any length.
- The advertiser on GOOGLE's network can not choose the stations within the markets.
- This agreement raises many questions about duplicating sales efforts. CLEAR CHANNEL owns a radio rep firm, a radio network, and has over 5,000 sales professionals at the stations.