I do think there are more possibilities with the major broadcast companies than Bruce is willing to accede. The radio business is struggling right now, and if this is the opening that brings in some additional revenue from non-traditional sources, the inventory may be there. It’s a risk, however.

The ownership of the vast majority of radio stations in this country is concentrated amongst six companies, Notably Clear Channel and Infinity (now CBS Radio again!). Most importantly, these companies control the majority of listenership and ad revenue in the top 100 markets! Does Google really think these group owners are going to allow Google to muscle in on their turf? If they are thinking that way, I predict a “come to Jesus” experience for Google very soon.

DMarc, according to their site is a barter shop that sells remnant inventory. They tout generating revenue from all the unsold inventory on a station after the logs are closed each day. In turn, they will help a station lease equipment via bartering of station inventory.

Does anyone really think CBS or Clear Channel need to do barter deals to pay off equipment leases? Maybe stations in Moosebreath, WY type markets but not anyone in the top 150 markets.

What I think Google does not understand, is that the Clear Channels of the world beat the crap out of their station sales managers to make sure that EVERY spot is sold every day, 24/7/365 at top rates. Everything in radio sales management is about yield and maximizing it. Moreover, the radio station wants 100% of the revenue at maximum rates. Clear Channel and CBS did not achieve their success by brokering their inventory or bartering it. The only times stations entertain barter is if the market tanks. so barter is a down economy segment. Last I looked, the economy is doing very well.

This DMarc deal is what Google print was trying to do…buying a remnant page and then chopping it up into smaller ads for the ad budget challenged businesses. People, Forbes, or Sports Illustrated do not play that game and never will. Funny, we don’t hear much about Google print, probably because it is on its ass.

I wonder if the Googlers asked for a list of DMarc client stations and the spreadsheets showing the days and times all this “great” inventory actually ran. I’m betting small to medium market stations with low ratings and a ton over overnights are the rule. WCBS in NYC is probably not on the DMarc station list!

When the accounting rules and IRS regs changed in the 1970’s requiring barter or trade deals to be treated the same way as cash sales were, barter became very scarce. Grossing up the values on both sides of a barter deal (merchandise, services and station inventory) became a boat anchor to the station’s bottom line. It was funny money versus compared to selling your inventory for just plain cash. BTW, I really miss all the old restaurant, hotel, and airline trade deals!

This part of Radio history is not going to repeat itself, no matter what visions of the future Google may have.

http://v3.espacenet.com/origdoc?DB=EPODOC&IDX=WO2005116852&F=0&QPN=WO2005116852