• by Tameka Kee , October 15, 2007

Google recently launched a promotion for its Audio Ads product that will give advertisers a $2,000 credit toward future radio spots if they spend at least $1,000 on a single campaign.

While Google is claiming success for some of its advertisers, analysts suggest the promotion is a sign that attempts to push into the offline space are faltering.

Google's AdWords-based program is aimed at simplifying the process of creating, managing and buying ads for AM and FM stations. The program moved out of limited-beta phase near the end of May, and such advertisers as Cequal and CoastalContacts have gone on the record about their successes.

"This is but the latest piece of evidence that, while Google may be golden in online advertising, its forays into off-line advertising have yet to catch on," blogged Erick Schonfeld on TechCrunch, adding: "Google must be having a real hard time selling those radio ads to have to resort to such a blatant attempt to buy market share."

Meanwhile, Andy Beal on the Marketing Pilgrim blog suggests a trio of factors that could have inspired the promotion. He questioned whether the Audio Ads product is struggling, but suggested the ads may just be too expensive (thus, the search giant can afford to cut back on profit) or even that Google's radio ads are doing very well and that the "two-for-one" deal is just a way to ensure continued success.

"This move was designed to get the very small advertisers that are currently using search to try the audio ads," said Natalie Swed Stone, U.S. director of national radio, OMD. "If you look at the Audio Ads online interface, it's geared toward people who don't really know about buying radio. It leads them through the criteria, helps them create the ad, and says here's what you need to do to reach your target."

As for advertisers who have already tried the Audio Ads service, reactions range from stellar to abysmal. In a testimonial published on the Google Audio Ads info pages, Needham-based virtual phone firm GotVMail touted increases in "new customer revenue by more than 7% and site traffic by more than 5%."

Meanwhile, a marketer at the Digital Point search engine forums gives a lengthy, detailed account of three Audio Ads campaigns that ran in 12 differently sized markets for $100-$500 per week.

The site owner concludes that radio ads were better suited for branding and weren't easily trackable--but also expressed a cautious optimism, saying: "At this point, I can't say it's a bust or a success and I will continue testing, probably around $500 a week for the rest of the year to really determine if it works. Radio is about the only affordable way to brand and target offline."

In contrast, one beta tester found the program to be a "complete waste of money." The tester claimed to have spent more than $1,000 in large DMAs like Los Angeles and New York, with no resulting rise in traffic or sales.

Google may face challenges with recruiting both offline and online buyers to their Audio Ads program--as digital ad types are used to the concrete conversion and traffic metrics of PPC campaigns, and the traditional radio buyers are unimpressed with the program's relatively limited reach.

"Google has brought incredible innovation to advertising, but for this, the inventory and distribution isn't quite there yet," said Stone. "This specific promotion will not affect traditional radio buyers, because we don't need to go online in order to do what our clients need us to."

When it comes to the future of radio buying in the online space, Stone was adamant that there was no fear or resentment on the traditional end.

"We welcome change--but we don't welcome someone trying to our job for us. Much of what Google can provide comes from automation and the idea of 'give us your money and we'll figure it out for you'. All the while retaining the information," said Stone. "Clients come to us because we figure it out for them--so we don't need that. But Audio Ads hasn't completely evolved, so there may be opportunities for both sides to partner in other ways in the future."