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January 12, 2007

Google: Snag? What Snag?

Michael Arrington

28 comments »

In December we reported that Google’s much rumored foray into radio advertisements may be significantly delayed because Google didn’t have access to enough radio airtime for advertisers to test the product. We also reported that Google was working on a deal with CBS Radio to get access to more ad space.

Earlier today, Merrill Lynch Analyst Jessica Reif Cohen said that Google was very close to closing that deal with CBS. And that deal may be much bigger than a simple radio advertising agreement.

It may also include a large payment by Google to buy off any claims CBS may have against YouTube (see our previous post on this) for television content. The sticking point seems to be the size of the revenue guarantee Google will be giving.

On the radio advertising side, Cohen estimates that the deal would lock up 10% of CBS’s radio advertising and generate $200 million or so in revenue.

  • Sphere It

This entry was posted on Friday, January 12th, 2007 at 12:58 am and is filed under Company & Product Profiles. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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Comments

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  1. Startups.in/India

    January 12th, 2007 at 1:10 am

    Lately, to me Google is sounding more & more like an Ad broker/agency. :)

  2. Michael Arrington

    January 12th, 2007 at 1:15 am

    …with a search engine attached.

  3. Sean

    January 12th, 2007 at 1:22 am

    Google with access to another medium of communication? I can see this being huge.

    It’s like they are taking over our senses one by one. I wonder what google will taste like…

  4. Miles Wilson

    January 12th, 2007 at 1:44 am

    Google, the new fragrance for men….

  5. Don Wilson

    January 12th, 2007 at 2:24 am

    Is this blog post half written? I didn’t see anything related to “snag” in the article.

  6. Tom Churm

    January 12th, 2007 at 3:30 am

    Miles Wilson, you made me laugh. How about:

    ‘Google? You’re already soaking in it.’

    (old Palmolive spot)

  7. Phil Bradley

    January 12th, 2007 at 4:01 am

    The snag was that Google couldn’t get enough airtime. It now looks as though they can get the airtime they need, so there isn’t a snag any longer.

  8. Bourbs

    January 12th, 2007 at 4:28 am

    How about how Google will feel? I’m not sure, and I’m going out on a limb here, but it’ll probably feel like it’s hard to sit down afterwards.

  9. Patrick Aievoli

    January 12th, 2007 at 4:50 am

    They should just start their own television network. GoogleTv. They have the user base. Start segments out of their labs. Cable would accept it. As Alan Kay once said the best way to predict the future is to invent it.

  10. Daniel (PR)

    January 12th, 2007 at 6:58 am

    Google buys this thenit buys that so what do you get, well when google wants something to happen like with CBS then they get out the cheque book as money talks.
    They will get their own way as they have a lot of money and will make the deal.

  11. Richard Bowles

    January 12th, 2007 at 7:17 am

    google has had so much money on hand that the SEC - almost made them a bank! .. or an investment firm!

    - they have to spend it somewhere … so they get the smartest people money will buy (and retain)…

    - the get the cream ‘o the crop startups and (the people)

    - then since you got all that; why not shoot the moon and take over Radio (10%) is alo

    - then if any of the latter as worked out; shoot the moon once again and go for T.V. -

    ——– soon google will have a foot in every door, then take the path of least resistance. I see them walking into 5-6 new global markets this year then backing out of 2-3 next year.

    - Rbowles

  12. Priya

    January 12th, 2007 at 8:51 am

    soon google will have a foot in every door, then take the path of least resistance. I see them walking into 5-6 new global markets this year then backing out of 2-3 next year

  13. shortshire

    January 12th, 2007 at 9:53 am

    I don’t really know what to say about this except for google will soon own all big avenues of ads. I’m not sure what to think, they are a great company for the people, a giant that has helped many people out but when they get too much power and get angry, who is going to feel the hit? Maybe they’ll stay a gentle giant.

  14. Brian Laesch

    January 12th, 2007 at 10:22 am

    Yeah, Google should definitely advertise on the radio. I don’t know anybody who even knows what Google is.

  15. Samir

    January 12th, 2007 at 10:47 am

    Next they’ll introduce a Google Secure Radio Client to stream radio and music, monitoring what music you listen to, and serving relevant ads. They already have all of your email, chat, internet usage, search usage, documents, etc.

    When is Google TV coming? Maybe they could monitor that too.

  16. AndrewG

    January 12th, 2007 at 11:04 am

    I came looking for snag.

    Now leaving disappointed…

  17. Henry Tam

    January 12th, 2007 at 11:27 am

    > Lately, to me Google is sounding more & more like an Ad broker/agency. :)

    Startups.in/India, Google is an advertising company pretty much from day one. It appears to be a technology company but it really isn’t.

  18. NeoTechie

    January 12th, 2007 at 12:10 pm

    Google’s Businesses Intelligence is superb!

    They are not only revolutionized the web, but Google is also changing the way the world does business.

  19. Priyav

    January 12th, 2007 at 1:34 pm

    soon google will have a foot in every door, then take the path of least resistance. I see them walking into 5-6 new global markets this year then backing out of 2-3 next year

  20. shino

    January 12th, 2007 at 3:28 pm

    why is google more favorite with many people rather than anyother?

    cool? lovely?? or anyother…

  21. Shokal

    January 13th, 2007 at 12:10 am

    When… when will they integrate their “radio ads” product into online streaming audio? When they purchased dmac it seems this is where they’re heading. The online audio publishers are waiting…

  22. carl0ski

    January 14th, 2007 at 6:08 pm

    As long as the intrusive, distracting , popup ads stay on Google billboards and off
    Google.com

    i don’t really care what they do :P

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