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Google Radio Ads Experiencing Early Troubles
An anonymous reader writes "Google's tech-heavy solution to advertising has worked wonders on the internet, and made it a friend to bloggers everywhere. The low-tech nature of traditional radio, though, has caused some conflicts with Google's radio ad service. The impersonal nature of online ads are very different than the one-on-one personalized service that radio advertising normally uses. While Google ads are running on some 700 radio stations, that's a very small part of the market. They are committed to improving, but onlookers think it will take a change in pitch. 'Whether Google can succeed in radio "is questionable, because you do need relationships with radio stations to give you something of value. If you don't have radio-focused personnel...you'll get the low-hanging fruit but may not be able to grow the market," said Maribeth Papuga, senior vice president and director of radio buying for Media Vest, a part of ad firm Publicis Groupe. "Their challenge is going to be having a broad enough list of markets and stations to make it a viable enough player on a national scale."'"
Considering the fact that Google invaded North Carolina for a data center employing ~200 folks and gets to escape property taxes and other state taxes for up to thirty years...they seem to be on a pretty sound business model. I can't imagine their radio business will fail considering the effectiveness of their other efforts. All it takes is money and they have plenty of that.
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"In January, Google announced it would build the computer center and bring up to 210 jobs in four years to Lenoir, a community 70 miles northwest of Charlotte hurting from the collapse of its furniture industry. In exchange, Caldwell and state officials approved incentives that could be worth more than $260 million over 30 years."
This from the Charlotte Observer...don't know if you may need to register... http://www.charlotte.com/mld/charlotte/business/1
Incredible, 200 jobs gets them incentives worth $260 million over 30 years? Hell, they even got the elected county officials out there to help buy up the properties for their data center. The whole thing stinks on way too many levels. I guess I can rule out getting a job with them.
I reserve the right to think for myself. Others' opinions are optional. Puppy on lap = typos...not illiteracy.
The impersonal nature of online ads are very different than the one-on-one personalized service that radio advertising normally uses.
Don't you have that backwards?
The theory of relativity doesn't work right in Arkansas.
So, given what we know about Google, they will just buy/hire some radio-focused personnel. Its not as if they don't have the resources!
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There must be three or four dozen radio stations in town, but they all are worthless. Radio wave broadcasting is a dead industry.
Agreed, the radio industry is dead, the music industry is dying, but one of the most beloved and influential radio stations in Seattle is KNHC, or "C89.5", a non-profit high school 24/7 voc ed program with listeners worldwide. And some people (/me clears throat) have to use classic radio at work because their workplace rules prohibit streaming audio.
I think you bought the CO's story a bit too quickly. The real story goes something like this: under the standard tax rules, if Google invested $600M or so in NC they would pay $300M (!) in taxes. They got a $250M rebate so now they pay $50M. You didn't see similar stories about their Oregon datacenter because most of the taxes that were discounted in NC don't exist to begin with in OR. For example, in NC you have to pay (as a company) something called "personal property tax", plus there's sales tax, and in OR neither of these exist. Disclaimer: I'm neither a lawyer nor a tax accountant, but I know one ;-)