CEO Expects 'Breakout Year' For Radio And Google
May 16, 2007 at 5:44 AM (PT)
USA TODAY interviews GOOGLE CEO ERIC SCHMIDT, who joined GOOGLE from NOVELL in 2001, when it was an unprofitable but up-and-coming search engine. Now, GOOGLE has surpassed MICROSOFT and YAHOO! as the world's most-visited website. It just announced a record $1 billion in quarterly profit, virtually all from those little 10-words-or-less text ads that appear near search results. It also made an alliance with the nation's largest radio broadcaster, CLEAR CHANNEL, to let GOOGLE advertisers buy radio ads directly from the Web.
Look at the time people spend listening to radio, vs. the money currently being spent to advertise on radio -- it's out of whack. Radio can be so much bigger.
Some of the radio-oriented highlights of JEFFERSON GRAHAM's interview include:
Q: You say this will be a "breakout" year for GOOGLE and radio. Why?
A: Radio is greatly undermonetized. Look at the time people spend listening to radio, vs. the money currently being spent to advertise on radio -- it's out of whack. Radio can be so much bigger.
Q: Why do you think your network of advertisers, who specialize in online text ads, are ready to move to audio advertising?
A: We have enough inventory. We got into radio when we bought (radio company) DMARC BROADCASTING, but they had remnants (unsold ads offered at last-minute discounts), which is stuff people didn't want. That's a good business, but not a great business. What we needed was prime-time slots, and that's what CLEAR CHANNEL offers us.
Q: How will this work for your clients?
A: You're already advertising on the Web, so why don't you try a radio ad? And you will discover there's a whole network of people, at the click of a button, who can professionally produce the ad for you, for like $100. It's unbelievable.
Q: Is that available now?
A: No, but it will be soon.
Q: The beauty of the online advertising model is that advertisers know whether or not an ad has been effective. They only have to pay if someone clicks on the ad. How can you bring relevancy to radio?
A: Advertisers can target the listener by driving them to a toll-free number or website address, and that should produce an uptick in the product demands.
Read the full interview here.