Google ends broadcast radio advertising

by Dan Leahul, Brand Republic 13-Feb-09, 10:50

LONDON - Google plans to pull out of the broadcast radio advertising market to focus on streaming audio, less than a month after it scrapped efforts to sell ads for newspapers.

The decision could lead to 40 layoffs from Google's 20,000 workforce.

Google moved into broadcast radio advertising with the $1.2bn acquisition of dMarc Broadcasting in 2006, setting up Google Audio Ads and Google Radio Automation, marking its first big move outside of online advertising.

Google continued this trend in an attempt to convince stockholders of its revenue potential outside of its search business by selling ads in newspapers, magazines and television.

As the recession took its toll, Google began to claw back its previous investments, last month announcing that it would be pulling all its print advertising.

Susan Wojcicki, vice president for product management, wrote on the company's official blog that Google will continue to invest in the TV advertising business, where unlike radio, the company has the tools to measure audience response, which has been paramount in its marketing leading search business.

Wojcicki said: "We have always accepted that if you take risks not all of them will pay off.

"Deciding to close products is never easy, but we will continue to focus on advertising products that provide measurability for advertisers, and are relevant and useful for users, listeners and viewers."

Advertisers will be able to use Google Audio Ads until May 31, after which it will phase out the audio ads products and software and focus on online streaming audio.