A big test for Google’s dMarc purchase could be announced very soon, with Google providing up to ten percent of CBS Radio’s ad inventory.
Such a deal with CBS could deliver $200 million in advertising revenue, not to mention sending considerable shockwaves through the advertising agency establishment that has dominated Madison Avenue for decades.
MediaPost cited Merrill Lynch’s Jessica Reif Cohen, lead broadcast analyst, on the report. A Google hookup with CBS would likely encompass advertising as well as content.
CBS was the first network to work with Google when Google debuted its Video service. Also, CBS has been aggressive in pushing the envelope with online content, even going so far as to promote a broadband-first focus for their news programming.
Stepping into radio advertising looks like a safe move for CBS. They would gain access to Google’s ad repository to fill remnant space in their radio programming schedule, without disrupting more prominent brand advertisers or drive-time placements.
The issues for the ad industry will come with a successful rollout of a Google option for radio. Being able to deliver placement and relevance for advertisers at a lower cost than what Madison Avenue can provide could entice bigger accounts to fire up an AdSense account with Google and count their savings.
From radio, Google may be poised to take the really big step up to television, where the impressive money can be found. That would put a serious crimp in expense accounts at the big ad agencies, who have already seen resistance from advertisers in purchasing lucrative upfront advertising.
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David Utter is a staff writer for Murdok covering technology and business.
