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I’ve been critical in the past of some of Google’s forays into non-text based advertising, in particular video ads and print advertising. When it comes to radio, however, I do think that Google has found a logical fit that should be pretty successful.
Why, well two primary reasons. First, a lot of radio appeals to direct marketers, the very same people who love search engine marketing. Those late night ads to refinance your mortgage that interrupt your favorite AM paranormal show – that’s exactly the kind of advertiser that will love AdSense for radio.
Second, radio is fragmented. As I discussed many months ago in a post speculating on AdSense for Radio, outside of ClearChannel there aren’t many places you can go to get national coverage across thousands of radio stations. Google is well positioned to change this, assuming they can get buy-in from the radio stations (given the choice between Google and ClearChannel, most radio stations would probably swallow hard and go with Google . . . for now).
I am a bit surprised that this is going to be a CPM based system, but I suspect that it is difficult to completly revolutionize an industry in one day, so CPC or CPA-based pricing will have to wait for a few months. Nonetheless, overall a good move for Google. Now if only they could get their money back from that silly YouTube purchase . . .