Search »

Analyst: Google Audio Lacks Sufficient Inventory

Google Audio may be headed for an unexpected roadblock, according to an analyst’s report on Monday. While it appears that a critical mass of advertisers are intersted in pursuing Google’s radio advertising, the company may not have access to enough radio time for those advertisers to sufficiently test the initiative.

Several news reports, however, have said that Google is heavy into negotiations with CBS Radio to buy large amounts of air time, writes Market Watch. If the negotiations are successful, Google could avoid air time shortage, says RBC Capital Markets analyst Jordan Rohan. If not, the rollout of Google Audio could be delayed until Google can strike a deal with CBS or another radio giant.

As for now, says Rohan, “there is simply not enough radio inventory in the Google Audio system (yet) to enable buyers to run campaigns.”

In fact, Google radio ad sales executives have changed their approach during sales calls, Rohan pointed out in his note on Monday. Rather than strictly selling the efficiency and efficacy of Google Audio, as they had before, they are now pushing the combination of radio and internet ads.

A Google spokesman said in an email that advertisers have access to more than 700 stations spanning “more than 200 metro areas,” and that more stations and inventory will be available to an increasing number of advertisers next year.