Google buys radio advertising firm dMarc

Google buys radio advertising firm dMarc

	Published : Wed, 18 Jan 2006 10:05 By : Paula Demarzio Print this Story

NEW YORK: Google Inc. said Tuesday it is buying radio advertising firm dMarc Broadcasting Inc. paying upfront $102 million in cash and an additional $1.14 billion over the next three years.

dMarc, a private company based in Newport Beach, California, offers networking facility for advertisers with radio stations through an automated system, taking care of selling, scheduling and delivering ads.

Analysts feel the deal signifies Mountain View, California-based Google's planned foray into television ad buying market as well. It had recently launched an internet video service offering television shows and basketball games.

Google said the additional payments would depend on the company meeting revenue and ad inventory targets. The dMarc technology will be integrated into the Google AdWords business, creating a radio ad distribution channel for Google advertisers.

dMarc, founded by brother Chad and Ryan Steelberg in 2002, has a product that facilitates radio outlets to automate their operations. It is used by some 5,000 of the 13,000 stations in the U.S. Its other product allows the radio stations to automatically sell leftover airtime to advertisers at a steep discount.

The brothers had earlier founded another company, AdForce, which was acquired in 1999 for 500 million in stock by technology company CMGI. They also set up Broadband Digital Group, a free broadband access firm, now defunct.

Google's vice president of advertising sales Tim Armstrong said the company is committed to exploring new ways to extend targeted, measurable advertising to other forms of media. "We anticipate that this acquisition will bring new ad dollars and accountability to radio by combining Google's expansive network of advertisers with dMarc's talented team and innovative radio advertising technology," he said.

Armstrong said the overall radio space looks similar to the way the internet did five or six years ago, referring to the fragmentation of stations and inefficient ways that advertisers buy commercial time. Google will develop tools that automate the creation of radio advertisements, he said, which will allow smaller companies, which are the mainstay of its internet advertising programme, to place radio ads as well.