Lauren Rich Fine, analyst, Merrill Lynch: “Revenues & margins for dMarc were not provided, but the potential earn-out seems extraordinary, in our view. We are also intrigued that GOOG is putting this much money into traditional media given the inherent growth potential of online. … The radio advertising industry is expected to grow 2.4% in 2006, based on ML Broadcast analyst Laraine Mancini’s estimates. Universal McCann estimates that radio advertising accounted for approximately $20bn in 2005, of which $15.5bn is local and $4.4bn is national. As a medium that caters largely to local advertisers, we believe this type of platform could be quite appealing to the small and medium-sized advertisers, a base of advertisers that Google already has amassed, and could actually increase demand for radio; yet, at the same time it could wrestle some control from the stations themselves, which could be met with resistance.”
Jeff Lanctot, VP-media, Avenue A | Razorfish (via ClickZ): “Over the next several quarters and years, I think Google will try to take this same approach with newspapers, magazines and TV; they would like to be the marketplace where all media is bought and sold. … Local businesses could turn to Google for a package that includes search listings, radio spots…and eventually TV spots and newspaper ads.”
David Cohen, interactive media director, Universal McCann (via LAT): “It is definitely a head scratcher when they get into all these areas that are not in their sweet spot. I think they are trying to do too many things too quickly.”
Andy Beal, president, Fortune Interactive (via Mercury News): “It’s the end of Google as a search company and the beginning of Google as a media company. And they’re not just an online media company. They’re offline now.”
Bryan Wiener, president, 360i (via MediaPost): “It’s going to take longer to change the dynamics of the offline media market than it is the way the dynamics are changing online,” he said. “These are entrenched industries that are not going to change overnight.”
Related: Google Acquires dMarc Radio Ad Firm For $102 Million; AdWords Comes To Radio
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