Google may not be able to 're-invent' traditional

Google's ability to change the way that Internet advertising is done has been incredible. Search is now more than fifty percent of all on-line advertising, and no one can argue it's effectiveness. (Although I might argue that it doesn't deserve as much credit as it's given).

Google also has been aggressive in trying to re-invent other categories. The first time I recall this was when they came out with gMail, offered 1GB of storage forcing everyone else to do the same. Although they've received some great press, I'd argue that not much has really been 'game changing' beyond services related to search.

Then, the next big thing. They'll get into radio. They'll use their bidding machine to sell inventory. Completely different model for buying, completely different model for distribution, but this is Google, right?

Maybe not. It seems as if the endeavor is losing some steam. According to an article in Media Buyer/Planner,

"Station managers don't want potential advertisers to know they are selling remnant inventory for fear advertisers will simply wait until the station is desperate before buying, so Google doesn't allow advertisers to choose specific stations. That is a deterrent for most advertisers."

So what can work here? Maybe another company has figured it out:

"In the meantime, companies such as Bid4Spots, which offers a reverse-auction marketplace for radio stations to sell remnant space, compete with Google. The auction drives down prices for the buyer, and the company is growing by leaps and bounds. Currently, 2,300 radio stations sell inventory on Bid4Spots. "

Maybe Google should have done some research before entering this market. Maybe they were too arrogant and assumed they could make anything happen. Maybe their not invincible. Things don't look good when the founder of the company that Google bought to enter this market is leaving.

- Paul Herring