Eric Schmidt, Google CEO, believes that when he is listening to the radio in his car, radio ads should personally address him about his needs. For example, while driving past a clothing store, a radio ad should remind Eric that he needs a pair of pants and instruct him to turn left at the upcoming clothing store.
I cite Schmidt on his rationale for targeting the radio advertising market, and the television advertising market to boot:
Google has a lot riding on its radio bet; $1.13 billion to be exact. Google owns dMarc Broadcasting, for better or worse.
The New York Times’ “Changing its Tune” less than optimistic story yesterday on the “sluggish” radio ad market dampens the prospects for Google’s radio bet:
While more than 9 out of 10 Americans still listen to traditional radio each week, they are listening less…
'It’s not a debate any more that radio is a structurally declining sector,’ said Michael Nathanson, media analyst at Sanford C. Bernstein & Company…
Broadcast radio advertising over all was up 0.3 percent in 2005, lagging in growth in comparison with the gross domestic product for the third consecutive year. It will continue to lag economic growth for the next five years, according to Veronis Suhler. (Only the newspaper industry gets a slower top-line growth prognosis.)