Google Stubs It Toe On Old Media

Google’s (GOOG) start in radio ad sales has been inauspicious, to say the least. The company is getting the worst airtime, so-called remnant space, for its ad inventory auction process aimed at selling time on the thousands of radio stations around the US.

Surprising. Not really. The most popular shows like Imus on the most popular networks like CBS (CBS) are sold out, and at high rates. All radio advertisers are after the same thing. Hot shows in drive time, for 6 AM to 10 AM. Not much goes on in radio land during the day until people drive home, and then there is another jump in listening audience.

The big radio companies are not going to let Google have the best inventory. They can sell it themselves and keep 100% of the yield.

That naturally raises the issue of how well Google will do selling newspaper advertising space. The company mentions the initiative frequently. As the growth of its core search advertising business slows, the company wants to demonstrate that it has other avenues for collecting revenue.

But newspapers are not much different from radio. Their best inventory is typically sold out. Remnant advertising may not be attractive because it can force the newspaper to print more pages, a significant expense.

It is too much to say that Google’s foray into new media has died early. But, it does need oxygen.

Douglas A. McIntyre can be reached at [email protected]. He does not own securities in companies that he writes about.