Web Marketing with Bill Fukui

Google recently signed an agreement with Clear Channel radio, which owns the country's largest chain of radio stations. That includes 30-second spot times on all of Clear Channel’s 675 stations during all programs and all times of the day.

The search engine giant had already signed to sell radio adds for some 800 stations, but they were primarily in small media markets. This is Googles biggest step to date to penetrate the larger media marketplace, beyond the Web. This is stirring some concern among the media execs who are likely becoming wary of Google's expansion onto their turf.

Radio appears to be a better fit for Google that television, since most of TV's major revenue is tied to national advertising campaign airtime, where the bulk of each radio station's revenue come from local advertisers. However, Google also recently began selling advertisements for EchoStar Communications’ DISH Network and its 125 national satellite channels. This is in addition to launching a test to sell ads for some of the nation's largest newspapers, like The Chicago Tribune, The New York Times and newspaper chains.

Google's expansion into other areas and media, may be an effective means to diversify its revenue and broaden its media industry base and brand identity, but I can't help but think what that may mean to Google's core business, Internet search. In a world where, many times, success is based on focused energies and resources (which is how Google go to where it was to begin with), it may create an opportunity for some search competitors to gain ground.

History is littered with examples of empires (Rome, Napoleon, Japan, England) spreading itself too thin trying to cover too many fronts. Not that Google is going anywhere, at least in the foreseeable future, but it will be interesting to watch.

Bill
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