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BizReport : Advertising : January 15, 2007
CBS, Google to Deal for Radio, TV Ads?
Google apparently isn’t satisfied with online and newspaper advertising. According to reports from MediaBuyerPlanner, the online giant is in talks with the CBS networks to provide ad sales for radio inventory.
The deal could also include some content distribution, and according to the reports would likely not include local or network television time at first. Jessica Reif Cohen, a Merrill Lynch Analyst says (via MediaPost) the deal will include “low-quality radio inventory for use with Google's dMarc radio service”.
Google could generate $200 million in revenue if they can sell 10% of CBS Radio’s advertising inventory according to Cohen. The deal could also net CBS new advertisers to its online platforms. It could also create an efficient sales model that could reduce the cost of selling advertising.
According to AdAge, the deal is more or less finished. The two sides are now reportedly in talks to provide other content and inventory deals; one of those deals could include local television advertising. Local television advertising is a $60 billion per year industry.
The recent moves on behalf of Google into newspaper and other traditional mediums has caused concern on Madison Avenue. According to Cohen, it is because the “Google deals could commoditize ad time and cause related pricing pressure.”
Tags: Google, online advertising, online revenue, traditional advertising
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