So Google decided itâ€™s time to see just how far they can take their â€œpay-per-actionï¿½? ad model and acquired a radio advertising network. I spent a lot of time yesterday, discussing this move with a number of people. Hereâ€™s a collection of some of my thoughtsâ€¦
Accountability and Efficiency for Offline Advertising
This is a very bold, strategic move for Google. They are basically laying down the gauntlet and challenging the status quo of offline advertising principles. If they are successful in bringing a pay-per-action model to radio, they’ll certainly have a lot of traditional radio execs and ad agencies quaking in their boots.
Like to crunch numbers? Here’s the raw numbers just released by Yahoo.
Revenues were $1,501 million for the fourth quarter of 2005, a 39 percent increase compared to $1,078 million for the same period of 2004.
Revenues for the year ended December 31, 2005 were $5,258 million, a 47 percent increase compared to $3,575 million for 2004.
The stock is down in after-hours trading. Why? As one analyst puts it…
“There is nothing there that is a particular problem,” says Martin Pyykonnen, an analyst with Hoefer & Arnett who rates the shares strong buy and doesn’t own them. “It’s about beating expectations and coming out ahead, and they didn’t do that.”
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Buzzmetrics has announced the acquisition of Intelliseek – both companies offer solutions for tracking consumer-generated media. But, in a twist, the newly formed company will operate under the “Nielsen BuzzMetrics” brand and be headquartered in New York. Why? It seems VNU, parent to ACNielsen and Nielsen Media Research, will become a majority shareholder in the new BuzzMetrics with 50.1 percent ownership.
Steve Rubel offers his thoughts.
Nielsen, like other research companies that track and measure the media, was faced with a vexing issue. Namely: How do you evolve when the very media ecosystem on which you built your business is eroding? The answer is to acquire smart thinkers who have figured out ways to analyze, measure and live in a world where the Long Tail dominates.
Hot off the press! (yep, MarketingPilgrim breaks the news first)
Google has acquired dMarc technology for $102 million in cash and plans to integrate into the Google AdWords platform, creating a new radio ad distribution channel for Google advertisers.
This changes the entire advertising landscape and must surely have traditional media outlets quaking in their boots. With the money Google has in the bank, and a move that clearly signals the company’s intent to move the AdWords model “offline”, no media channel will be safe. Expect Google to challenge print, TV and radio by bringing an advertising model that has shown to be hugely successful.
From the release…
Google today announced it has agreed to acquire dMarc Broadcasting, Inc., a Newport Beach, Calif.-based digital solutions provider for the radio broadcast industry.
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